India advances green shipping with ₹1,200 crore Kandla e-methanol plant

It is also expected to create around 3,500 jobs.

Assam Petro-Chemicals Ltd (APL) has signed a memorandum of understanding (MoU) with Deendayal Port Authority (DPA) to establish a 150 tonnes per day (TPD) e-methanol plant at Kandla Port, Gujarat.

The project will require an investment of over ₹1,200 crore and create around 3,500 jobs.

DPA will provide port infrastructure, whilst APL will build the green methanol facility, producing e-methanol using green hydrogen and captured carbon dioxide. The fuel is a sustainable alternative for shipping, heavy industry, and chemical manufacturing.

The plant will help Kandla Port become a major green fuel hub on international shipping routes, reduce logistics costs, and support green bunkering infrastructure.

The initiative aligns with India’s National Green Hydrogen Mission and the government’s broader clean energy, Make in India, and Aatmanirbhar Bharat goals.

APL, which operates one of India’s largest methanol facilities at Namrup, will expand from conventional methanol production to green and e-methanol, strengthening India’s position in the global green marine fuel market.

“This project marks a major step in India’s Maritime Decarbonisation roadmap, allowing us to cruise towards PM Narendra Modi ji’s vision of Net Zero by 2070,” said Union Minister Sarbananda Sonowal.