The foundation stone for India’s first port-based e-methanol production facility was laid at Kandla in Gujarat on Saturday. The Rs 2,300 crore plant is a joint initiative of the Deendayal Port Authority (DPA) and Assam Petro-Chemicals Ltd (APCL).

The ceremony at the DPA Exhibition Ground in Gandhidham was led by Gujarat Chief Minister Bhupendra Patel, Union Ports, Shipping and Waterways Minister Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma.

The 150-tonne-per-day plant will use renewable power, water and biogenic CO2 to produce green marine fuel for vessels on the Asia-Europe International Trade Corridor. Phase I, of 50 tonnes per day at Rs 1,200 crore, is targeted for January 2027, while Phase II of 100 tonnes per day at Rs 1,100 crore is targeted for March 2027. The capital contribution is in a 76:24 ratio between DPA and APCL.

The projected e-methanol cost of about $750 per tonne compares with an estimated global cost of about $1,300 per tonne, which could position India as a green-fuel exporter and support its Net Zero 2070 goal. The project is expected to create more than 3,500 direct and indirect jobs.