India’s Ministry of Ports, Shipping and Waterways recently said Assam Petro-Chemicals Ltd (APL) signed an MoU with Deendayal Port Authority (DPA) to establish a 150 Tonnes Per Day (TPD) e-Methanol plant at Kandla Port in Gujarat, marking a significant step toward India’s clean energy and green shipping transition.
Under the MoU, DPA will provide pipeline connectivity, storage and fuel-handling infrastructure at the port, while APL will establish the green methanol production facility within the port area, creating an integrated value chain for green marine fuels.
E-methanol, or electro-methanol, is produced using green hydrogen and captured carbon dioxide powered by renewable electricity. It is considered one of the most viable alternative fuels for shipping, heavy industry and chemical manufacturing, sectors where direct electrification remains challenging.
Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal said the partnership represented a strategic national initiative aligned with India’s long-term vision for clean energy, green shipping and sustainable economic growth.
“This MoU represents not merely a commercial partnership, but a strategic national initiative aligned with India’s long-term vision for clean energy, green shipping and sustainable economic growth. This project marks a major step in India’s Maritime Decarbonisation roadmap, allowing us to cruise towards PM Narendra Modi ji’s vision of Net Zero by 2070,” Sarbananda Sonowal said.
Once commissioned, the facility is expected to enable Kandla Port to emerge as a major green fuel supply point along international maritime trade routes, including vessels operating on the Singapore–Rotterdam corridor.
The minister said port-based fuel production offers multiple advantages, including reduced logistics costs, seamless integration with shipping demand and development of green bunkering infrastructure.
“As a marine fuel, e-methanol meets international emissions regulations and enables cleaner long-distance shipping. By promoting e-methanol, India is positioning itself not only as a consumer but also as a producer and supplier of green marine fuels. This project strengthens the role of Kandla port as a future-ready green port aligned with global sustainability benchmarks,” Sarbananda Sonowal said.
As part of its decarbonisation efforts, the Kandla port is also being developed as a Green Bunkering Hub to supply low- and zero-carbon fuels to ships operating on international trade routes.
Kandla Port, located on India’s western coast in Gujarat, is among the ports being developed as a Green Hydrogen Hub under the National Green Hydrogen Mission. The mission aims to produce and export around 5 million tonnes of green hydrogen over the next five to six years.
Photo credit: India’s Ministry of Ports, Shipping and Waterways
Published: 3 February, 2026
