Assam Petro-Chemicals to Set Up E-Methanol Plant at Kandla

Assam Petro-Chemicals Ltd (APL) has signed a landmark MoU with the Deendayal Port Authority to build a 150 TPD e-methanol plant at Kandla Port in Gujarat, marking a major step in India’s clean energy and green shipping transition.

The agreement was sealed today in Dibrugarh in the presence of Assam Chief Minister Himanta Biswa Sarma and Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal.

The project involves a capital investment of over Rs 1,200 crore and is expected to create about 3,500 direct and indirect jobs once operational. Under the pact, Deendayal Port will provide pipeline links, storage and fuel-handling infrastructure, while APL will build and run the e-methanol facility inside the port area, creating an integrated value chain for green marine fuels.

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E-methanol, produced from green hydrogen and captured carbon dioxide using renewable electricity, is seen as a viable alternative fuel for shipping, heavy industry and chemical production, sectors where direct electrification is difficult. The initiative aligns with India’s vision of boosting sustainable energy and reducing carbon emissions in shipping and industrial transport.

Union Minister Sonowal described the MoU as a strong message that India will pursue economic growth without sacrificing environmental goals. He said the project is a strategic step in the nation’s maritime decarbonization roadmap and supports the goal of reaching Net Zero by 2070.

Once completed, the plant is expected to help position Kandla Port as a key green fuel supply hub on international trade routes, including the busy Singapore–Rotterdam corridor, while reducing logistics costs and strengthening India’s role as a producer and supplier of green marine fuels.