The ₹2,300 crore project will be built in two phases, with the first 50-tonne-a-day module targeted for completion by January 2027.

India's Ministry of Ports, Shipping and Waterways laid the foundation stone Saturday for what it described as the country's first port-based e-methanol production facility at Deendayal Port in Kandla, Gujarat. In January 2026, APCL and DPA signed an MoU for a 150-ton-per-day e-methanol facility at Kandla. The government said the project would have more than ₹1,200 crore in capital investment at that stage.

The Kandla plant is intended to supply e-methanol to ships operating on the Asia-Europe International Trade Corridor. The ministry estimated production costs at about $750 a metric ton, compared with a global rate of about $1,300 a metric ton. Union Minister Sarbananda Sonowal, Gujarat Chief Minister Bhupendra Patel and Assam Chief Minister Himanta Biswa Sarma laid the foundation stone at the Deendayal Port Authority (DPA) Exhibition Ground in Gandhidham. The plant is a joint initiative of DPA and Assam Petro-Chemicals Ltd (APCL), a 500-metric-ton-a-day methanol plant inaugurated by India PM Narendra Modi on April 14, 2023.

Fuel to reach ships on Asia-Europe trade corridor

The ministry said the e-methanol will be supplied to vessels operating on the Singapore-Rotterdam route, part of the wider Asia-Europe maritime trade network. It described the route as one of the world's busiest.

Under the ministry's plan, the plant will produce 150 metric tons of e-methanol a day once both phases are complete. It will use renewable power, water and biogenic carbon dioxide.

The ministry did not disclose any buyers or supply agreements for the fuel.

Deendayal Port to contribute land, water and hydrogen

The investment totals 2,300 crore rupees. DPA and APCL will contribute capital in a 76:24 ratio.

DPA's contribution includes ₹567.32 crore in equity, along with 75 acres of land, desalinated water and green hydrogen.

Project to create more than 3,500 direct and indirect jobs

The project will create more than 3,500 direct and indirect jobs, the ministry said. The ministry also expects the project to generate activity in transportation, storage, fuel supply and ancillary services around the port.

The ministry said the project is aligned with India's goal of reaching net-zero emissions by 2070. .

Sonowal says Kandla will become green-fuel hub

Sonowal said the project could help Kandla develop into a green-fuel hub serving the Singapore-Rotterdam route and serve as a model for other major ports. Patel said Kutch and Gujarat's coastline will supply fuel to the world's ships through Kandla. He said this would turn the state's renewable strength into an export.

Sarma said the Northeast will power India's clean energy future through APCL's role in the project.

Plant to add capacity in two phases

DPA and APCL will build the plant in two scalable phases.

Phase I will add 50 tons a day of capacity, with an investment of ₹1,200 crore. It is targeted for completion by January 2027. Phase II will add another 100 tons a day, with an investment of ₹1,100 crore. It is targeted for completion by March 2027.