India has made significant progress toward becoming a green energy exporter by laying the foundation for its first port-based e-methanol production facility. On September 26, 2026, Gujarat Chief Minister Bhupendra Patel, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, and Assam Chief Minister Himanta Biswa Sarma officially commenced the project at Deendayal Port Authority in Kandla, Gandhidham, Gujarat.

The facility will have a production capacity of 150 tonnes per day. It will utilize renewable energy, water, and biogenic CO2 to manufacture e-methanol, a green fuel that promotes cleaner shipping practices. The fuel produced by this facility will be supplied to vessels operating along the Asia-Europe International Trade Corridor, recognised as one of the busiest trade routes worldwide.

This initiative is set to enhance India’s status as an exporter of green fuel to international shipping markets, aiming to produce e-methanol at a competitive price of $750 per tonne, significantly lower than the global average of $1,300 per tonne.

Project Investment and Stages of Development

The total investment for the Rs 2,300 crore project is a collaborative effort between the Deendayal Port Authority and Assam Petro-Chemicals Ltd, based in Namrup. The project will be executed in phases, with the first phase targeting an addition of 50 tonnes per day at an estimated cost of Rs 1,200 crore, aiming for completion by January 2027.

Subsequent phases will increase production capacity by a further 100 tonnes per day, with an investment of Rs 1,100 crore targeted for completion by March 2027. The capital contributions are divided in a ratio of 76:24 between the two partners, with the Deendayal Port Authority contributing Rs 567.32 crore, along with 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen.

The facility is expected to generate over 3,500 jobs, both directly and indirectly, thereby stimulating the green energy value chain in the Kandla region, which includes transportation, storage, and other ancillary services for green energy production.

Alignment with National Goals and Broader Maritime Initiatives

The establishment of the e-methanol plant supports Prime Minister Narendra Modi’s objective of achieving Net Zero emissions by 2070. It resonates with the vision of Atmanirbharta (self-reliance) in energy, as well as the “Make in India, Make for the World” initiative. This initiative forms part of a comprehensive strategy to enhance India’s maritime sector, which includes plans to add 100 new ships to the country’s merchant fleet over the next five years.

In alignment with broader maritime initiatives, the Deendayal Port Authority is also advancing a shipbuilding project in collaboration with Cochin Shipyard Limited, valued at Rs 1,520 crore, and a proposed shipbuilding and repair cluster at Kuchhadi, Porbandar, which has received initial approvals.

Sarbananda Sonowal noted the cultural connections between Assam and Gujarat during the foundation-laying ceremony, expressing optimism about the partnership’s potential for strengthening India’s energy sector. He highlighted how Assam’s natural resources would contribute to the nation’s ambitions in green energy.

Other dignitaries present at the ceremony included local political figures and officials from both organisations, all gathered at the DPA Exhibition Ground in Gandhidham, highlighting a collaborative spirit in advancing India’s green energy goals.

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