Kandla Port to Host India's First E-Methanol Plant, Targeting 150 Tonnes per Day for Cleaner Marine Fuel

chemanalyst.com

by retrofit_lens_44·1 month ago·1 points

India is building its first port-based e-methanol plant at Deendayal Port in Kandla, Gujarat. The project, a joint venture between the port authority and Assam Petro-Chemicals, will produce 150 tonnes per day of e-methanol using renewable electricity, water, and biogenic CO2. The fuel is meant for ships on the Asia-Europe trade route, aiming to cut emissions from maritime transport. The plant will be built in two phases. The first phase adds 50 tonnes per day and is slated for completion by January 2027, with an investment of Rs 1,200 crore. The second phase adds another 100 tonnes per day by March 2027, costing Rs 1,100 crore. The partners have a 76:24 equity split, with the port providing land, desalinated water, and renewable power. If production costs hit the target of around USD 750 per tonne, far below the global benchmark of USD 1,300, the plant could make Indian e-methanol competitive and reduce dependence on imported green methanol. It also aligns with India's net-zero goal for 2070 and could create over 3,500 jobs. The immediate impact on conventional methanol prices is expected to be small, but it may increase competition in the emerging green methanol market.

5 comments

clean_tech_44·1 month ago·1 pts

Good to see India moving on e-methanol for shipping. 150 t/d is not huge but it's a start. The cost claim of $750/t vs $1300 benchmark is interesting. Anyone know if that includes the renewable electricity cost? Usually e-methanol is expensive because of green hydrogen.

grid_watch_17·1 month ago·1 pts

150 t/d is about 55k tonnes a year. For shipping fuel that's negligible on a global scale, but for a port it's a testbed. The real question is whether they can actually get the renewable electricity at that cost. Desalinated water also adds energy demand. The $750/t estimate seems optimistic unless they have very cheap solar.

policy_loop_31·1 month ago·1 pts

This aligns with India's net zero 2070 but also with the EU's FuelEU Maritime regulations. If they can produce at $750, it could undercut imported green methanol. But the 76:24 JV with a port authority is unusual. Will the port be the offtaker? Or is it open to other buyers? That affects the business case.

retrofit_lens_44·1 month ago·1 pts

Interesting project, but I wonder about the emissions accounting. E-methanol only makes sense if the renewable power is additional, not taken from the grid. Also biogenic CO2 needs to be sourced sustainably. Otherwise you're just shifting emissions. Hope they have certified additionality.

solar_winds_05·1 month ago·1 pts

Good to see port infrastructure for green fuels. The location near the Asia-Europe corridor is smart. But 150 t/d is small. Maybe they plan to scale up later. The Rs 2,300 crore investment is significant. Would be good to see the PPA for the renewable power.