Kandla Port e-Methanol Plant: ₹2,300 Crore Green Bunker Fuel – 29 September 2026

What happened

India is setting up its first port-based e-methanol production facility at Deendayal Port (Kandla), Gujarat, with a planned capacity of 150 tonnes per day and investment of about ₹2,300 crore. The project is a partnership between Deendayal Port Authority and Assam Petro-Chemicals Ltd (reported capital ratio 76:24). Phase I (50 TPD) is targeted around January 2027 and Phase II (+100 TPD) around March 2027.

e-Methanol synthesised from renewable hydrogen and biogenic CO₂ is positioned as a liquid green bunker fuel for ships on Asia–Europe routes, aligning with IMO net-zero shipping goals and India’s National Green Hydrogen Mission.

Exam hooks

• Deendayal Port = Kandla (Major Port, Gulf of Kutch)
• e-fuel vs LNG vs ammonia bunkering trade-offs
• Harit Sagar / Green Tug Transition Programme linkages

Practice MCQs

1. India’s first port-based e-methanol plant is planned at:

   (A) Paradip
   (B) Kandla (Deendayal Port)
   (C) Tuticorin only
   (D) Port Blair

   Answer: (B) – Foundation / project announcements centre on Kandla.

2. Planned e-methanol capacity at Kandla is about:

   (A) 15 TPD
   (B) 150 TPD
   (C) 1,500 TPD
   (D) 15,000 TPD

   Answer: (B) – 150 tonnes per day in modular phases.

3. e-Methanol for shipping is typically produced using:

   (A) Only coal tar
   (B) Renewable hydrogen and non-fossil CO₂
   (C) Only crude distillation
   (D) Nuclear waste heat alone

   Answer: (B) – Green e-methanol needs renewable H₂ and biogenic/captured CO₂.

Source: Times of India / ET Energyworld / Tribune reports on DPA–APCL project, late September 2026.