Deendayal Port Authority and Assam Petro-Chemicals have launched a 150-tonne-per-day e-methanol facility in Gujarat. The ₹2,300 crore project, significantly larger than the initial ₹1,200 crore estimate, aims to create a green-fuel bunkering hub for ships. Success will depend on the plant's ability to keep production costs competitive for the maritime industry.
Deendayal Port Authority (DPA) and Assam Petro-Chemicals (APCL) have officially started construction on a large-scale e-methanol facility in Gandhidham, Gujarat. The project involves an investment of ₹2,300 crore and is designed to produce 150 tonnes of green methanol every day. This facility is part of a broader push to transform the Kandla port area into a major hub for green fuels, helping ships transition away from traditional fossil fuels like heavy fuel oil.
This project marks a shift in scale from earlier plans. In January, the initial agreement estimated the project cost at ₹1,200 crore. The final plan now involves a much higher investment of ₹2,300 crore to ensure better infrastructure for the production, storage, and safe handling of alternative fuels. The project is expected to create over 3,500 direct and indirect jobs, serving as a significant industrial development for the region.
The initiative aligns with India’s National Green Hydrogen Mission, which aims to reduce carbon emissions across the supply chain. By providing green methanol, the port hopes to attract shipping companies looking to lower their environmental impact.
For the broader economy and industrial sector, the development serves as a major test case for new-age green energy projects in India. While neither Deendayal Port Authority nor Assam Petro-Chemicals is a publicly traded company that retail investors can buy shares in, the project offers valuable insights into the sector. The near doubling of the project’s estimated cost highlights the financial challenges and risks involved in building large-scale green energy infrastructure, including potential cost overruns and the need for high initial capital.
The primary monitorable for industry observers will be the project's execution timeline and its commercial viability. Shipping companies are highly price-sensitive. Therefore, the long-term success of this facility will depend on whether the company can produce green methanol at a price point that makes it a practical alternative to cheaper, traditional fuels. Investors in the broader engineering and clean energy supply chain should keep an eye on these developments, as they may signal the pace at which similar green-fuel infrastructure will be rolled out across other Indian ports.