India Breaks Ground on First Port-Based E-Methanol Plant

First Port-Based E-Methanol Facility Launched in Kandla

India has taken a step toward becoming a supplier of alternative marine fuels with the groundbreaking of an e-methanol production facility at Deendayal Port Authority (DPA) in Kandla, Gujarat. According to a report by Maritime Executive, Ports Minister Sarbananda Sonowal and Gujarat Chief Minister Bhupendra Patel took part in the foundation-laying ceremony for the plant, described as the first port-based e-methanol facility in the country.

The project forms part of the Indian government’s broader push to support cleaner maritime transport and position the country as a competitive exporter of green shipping fuels.

Cost Advantage Over Global Producers

The facility is expected to produce green methanol at roughly $750 per ton, compared with a global benchmark of around $1,300 per ton, according to the report. The plant will draw on green hydrogen, water, and biogenic CO2 as feedstocks.

DPA has already been building toward this capability. The port commissioned a 1 MW green hydrogen plant last year, part of a larger planned 10 MW project with L&T Energy, and in April conducted what was described as India’s first methanol bunkering demonstration as a precursor activity to the e-methanol plant.

Phased Rollout Through 2027

The $240 million project is a joint venture between DPA, which will hold a 76 percent capital stake, and Assam Petro-Chemicals Ltd. (APCL), contributing the remaining 24 percent. Once fully operational, the facility is expected to produce 150 tons of e-methanol per day.

Construction will proceed in two phases. Phase 1, targeted for completion by January 2027, will add 50 tons per day of capacity at an investment of $125 million. Phase 2, due by March 2027, will bring an additional 100 tons per day at a cost of $115 million.

Positioning for the Asia-Europe Trade

DPA is aiming to establish itself as a bunkering hub for methanol-powered vessels operating along the Asia-Europe trade corridor. Chief Minister Bhupendra Patel highlighted Gujarat’s renewable energy resources as central to the ambition, saying: “The long coastline of Gujarat will now power the world’s ships through Kandla. This plant turns our renewable energy strength into an export.”

The Kandla project adds to a wider pattern of Indian ports being identified for their potential in green fuel production, with research cited in the report pointing to DPA as one of several locations on India’s west coast with strategic advantages for the sector.

Apeks view — Owners weighing methanol newbuilds or retrofits should watch delivery, not announcements. Bunkering reliability depends on consistent supply, verified quality, and documented chain-of-custody at each port call — not projected cost curves alone. As facilities like Kandla come online, technical managers will want evidence that production, storage, and bunkering operations actually perform to spec before committing fleets to a route. Phased construction through 2027 leaves time to judge that record against stated capacity, rather than assuming the plan matches operational reality.