India’s First Port-Based E-Methanol Facility

Why in News?

Recently, the foundation stone of India’s first port-based e-methanol production facility was laid at Deendayal Port Authority (DPA), Kandla, Gujarat.

• Aim – To produce green maritime fuel for international shipping and strengthen India’s role in the global green-fuel supply chain.

• Joint initiative of –
  • Deendayal Port Authority (DPA), Kandla, Gujarat.
  • Assam Petro-Chemicals Ltd (APCL), Namrup, Assam.
• Implementation — Two Phases
  • Phase I
    • Capacity addition: 50 tonnes/day
    • Investment: Rs.1,200 crore
    • Target completion: January 2027
  • Phase II
    • Additional capacity: 100 tonnes/day
    • Investment: Rs.1,100 crore
    • Target completion: March 2027

E-methanol, also known as electro-methanol, refers to methanol produced using renewable electricity and carbon sources such as captured or biogenic CO₂.

• Importance of E-Methanol in the Maritime Sector – The maritime sector depends heavily on fossil fuels and is difficult to decarbonise because ships require:
  • High energy density in fuel sources
  • Capability for long-distance operations
  • Requirement for large quantities of fuel
  • Need for rapid refuelling processes
• Advantages
  • A viable alternative to conventional marine fuels
  • Potential to reduce lifecycle greenhouse gas emissions
  • Simplified handling compared to certain alternative fuels
  • Compatibility with existing methanol-capable marine engines
  • Potential integration into current port fuel infrastructure with necessary modifications
• Strategically important of Kandala
  • Port infrastructure – Supports the production, storage, and supply of maritime fuels, including bunkering services.
• • Gujarat's renewable-energy potential – Offers significant potential for solar and wind energy development.
  • Strategic coastline – Offers direct access to major international shipping routes.
  • International trade connectivity – Has the potential to supply green marine fuel to vessels on key international routes.
  • Emerging green-fuel hub – The project can support an integrated ecosystem encompassing production, storage, transportation, bunkering, and international shipping.

E-methanol is designated for use by vessels operating along the Asia–Europe International Trade Corridor.

Asia–Europe is one of the world's major maritime trade corridors. 

• Broader Maritime Sector Targets – The government has announced the following initiatives:
  • Expand India's merchant fleet by 100 vessels within the next five years.
  • Position India among the top five ship-owning nations globally by 2047.
• Other projects mentioned
  • DPA–Cochin Shipyard Project
    • Location – Vadinar
    • Investment – Rs.1,520 crore
  • Greenfield Shipbuilding and Repair Cluster
    • Location – Kuchhadi, Porbandar
    • Status – In-principle approval

Reference

DD India | India’s First Port-Based E-Methanol Facility