Foundation Stone Laid for India's First Port-Based E-Methanol Plant, with a Total Investment of ₹23 Billion

en.Wedoany.com Reported - On September 26, the Deendayal Port Authority (DPA) of India and Assam Petro-Chemicals Limited (APCL) held a foundation stone laying ceremony for a 150 t/day e-methanol project at Kandla Port in Gujarat. The project has a total investment of ₹23 billion and adopts modular phased construction. Its feedstocks include renewable energy, water, and biogenic carbon dioxide, and its product is planned to supply ships on the Asia-Europe international trade routes.

Phase I is planned to build 50 t/day of e-methanol production capacity with an investment of ₹12 billion, targeting completion by January 2027; Phase II will add another 100 t/day of capacity with an investment of ₹11 billion, targeting completion by March 2027. After both phases are fully completed, the total capacity will reach 150 t/day.

DPA and APCL will make capital contributions in a 76:24 ratio. DPA will invest ₹5.6732 billion in equity funding and provide 75 acres of project land, desalinated water, and renewable energy supplied in the form of green hydrogen. APCL has included the Kandla 150 t/day e-methanol project in its subsequent construction plan.

The project adopts a process route that synthesizes methanol from green hydrogen and captured carbon dioxide. DPA had previously initiated early procurement of key equipment for the e-methanol project and in 2025 issued a call for expressions of interest for a Green Hydrogen Methanol Synthesizer, which is used to synthesize e-methanol from green hydrogen produced by electrolysis and captured carbon dioxide.

APCL had previously launched procurement for the preparation of a techno-economic feasibility report and a detailed project report for the Kandla Port e-methanol project. On January 29, 2026, APCL and DPA signed a memorandum of cooperation for the 150 t/day e-methanol project; on September 26, the project completed its foundation stone laying and entered the phased construction stage.

Kandla Port completed a shore-to-ship methanol bunkering trial on April 2, with participants including Stolt Tankers, J M Baxi, Aegis Vopak, Indian Oil, and DPA. The test covered fuel transfer, safety systems, and regulatory compliance. DPA plans to subsequently carry out ship-to-ship methanol bunkering and has proposed forming an e-methanol supply capacity of about 500,000 tonnes/year that meets RFNBO requirements by 2028–2029.