India to build e-methanol plant for Asia-Europe shipping route

India plans to build an e-methanol production plant at Kandla Port in Gujarat with an estimated investment of around Rs 2,300 crore. The project will be developed by Deendayal Port Authority and Assam Petro-Chemicals Ltd, with total capacity reaching 150 tons of e-methanol per day.

Construction will be carried out in two phases. The first 50-ton-per-day phase, requiring around Rs 1,200 crore of investment, is scheduled for completion by January 2027, while another 100 tons per day will be added in a second phase worth around Rs 1,100 crore by March 2027.

The plant will use renewable electricity, water and biogenic CO₂ to produce e-methanol. Green hydrogen will be combined with captured carbon dioxide to create a low-carbon fuel for the maritime sector.

The main target market will be vessels operating on the Asia-Europe trade route. India sees e-methanol as one of the options for reducing the use of conventional fossil fuels in international shipping.

Kandla Port is also being developed as a Green Hydrogen Hub under India’s National Green Hydrogen Mission. The e-methanol project is expected to become part of a broader infrastructure for producing, storing and supplying low-carbon marine fuels.

Tags: H2, EU, India, shipping, Asia, marine fuel