India’s First 150 TPD e-Methanol Plant Nears Reality at Deendayal Port

Post by : Avinab Raana

Photo : X / Sarbananda Sonowal

In a pivotal development for India’s clean energy landscape and maritime sector, the Deendayal Port Authority (DPA) in Kandla is gearing up to launch the country’s first e-methanol plant with a daily production capacity of 150 tonnes. The ambitious project, a strategic partnership with Assam Petrochemicals Ltd (APL), underscores the nation’s growing commitment to sustainable energy solutions and decarbonising the shipping industry. The plant is expected to transform how green fuels are produced and supplied at India’s major ports.

Officials from the DPA and APL recently visited the designated 150-acre project site at Kandla Port, marking the formal beginning of the e-methanol plant initiative. This collaboration reflects a broader push to integrate renewable fuels into the maritime value chain. By producing e-methanol, a clean, low-carbon alternative to conventional marine fuels, the facility aims to support India’s devotion to net-zero targets and clean fuel adoption across heavy transport sectors, especially shipping.

The commencement of site work followed a high-level agreement previously signed between the Deendayal Port Authority and Assam Petrochemicals. Strategic leaders including the Chairman of DPA and the Chairman of APL oversaw on-ground preparations and expressed optimism about the project’s potential to redefine energy production at ports. The initiative not only marks a first for India’s maritime infrastructure but also positions Kandla Port as a frontrunner in sustainable fuel innovation.

E-methanol, produced through green hydrogen and captured carbon dioxide powered by renewable energy sources, is increasingly viewed as a viable alternative fuel for vessels and heavy industries where direct electrical solutions remain challenging. By setting up production facilities directly at a major port, India is taking proactive steps to ensure the availability of clean marine fuels closer to where they are needed most, supporting global trends toward environmental compliance and emissions reduction.

Beyond environmental benefits, the investment in an e-methanol plant at Deendayal Port brings significant economic potential. Reports indicate the project involves a capital expenditure exceeding ₹1,200 crore, with the promise of creating thousands of direct and indirect jobs throughout the construction and operational phases. This blend of green innovation and economic opportunity highlights how clean energy transitions can fuel broader industrial growth across regions.

The plant forms part of a larger national vision to deepen India’s footprint in renewable and sustainable technologies. In alignment with ambitious climate goals, this venture dovetails with parallel efforts to expand green hydrogen infrastructure at ports and integrate ports as hubs of alternative fuel distribution. By enabling e-methanol production at scale, the project could catalyse further development of a domestic green fuel ecosystem that supports shipping decarbonisation and maritime competitiveness.

For Assam Petrochemicals, the project represents a major evolution in its long industrial history. Traditionally one of India’s leading conventional methanol producers, APL’s foray into e-methanol production highlights the company’s strategic shift toward future-oriented, sustainable chemical manufacturing. With the backing of state leadership and national policymakers, this venture also symbolizes Assam’s expanding role in cutting-edge industrial initiatives beyond its regional boundaries.

Deendayal Port’s leadership has consistently championed sustainability, with ongoing initiatives spanning green hydrogen production, emission reduction technologies, and now, pioneering alternative marine fuels. The anticipated e-methanol plant reinforces the port’s commitment to future-ready infrastructure, aligning with global maritime standards and the growing demand for cleaner fuels in international shipping circuits.

As site work progresses into the construction phase, focus will shift toward detailed engineering, procurement, and eventual commissioning of the plant. With operational readiness on the horizon, stakeholders across government, industry, and maritime communities are watching closely. The e-methanol facility is poised not only to enhance Kandla Port’s capabilities but also to chart a new course for how India approaches sustainable energy in its maritime and industrial ecosystems.

The launch of India’s first 150 TPD e-methanol plant at Deendayal Port marks more than just infrastructure development, it is a decisive stride toward a greener future for shipping and heavy industry. As the project transitions from planning to reality, it carries the promise of cleaner fuels, stronger economic prospects, and a model for sustainable growth that other ports and nations might soon emulate.

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