India's first e-methanol plant at Kandla: How it works and what it means for shipping decarbonization

India is building its first e-methanol plant at Kandla port in Gujarat, a ₹2,300 crore project that will produce 150 tonnes of e-methanol per day. The plant uses renewable electricity, water, and captured biogenic CO2 to make fuel for ships on the Asia-Europe trade corridor. It is part of a push to cut emissions in international shipping, which accounts for about 3% of global CO2 output. E-methanol is made by splitting water with renewable power to get green hydrogen, then combining that with captured CO2. The first phase, at 50 tonnes per day, costs ₹1,200 crore and is due by January 2027. The second phase adds 100 tonnes per day by March 2027. The fuel cannot fully eliminate shipping emissions but can reduce them compared to conventional marine fuels.