Agastya Green Fuels, an Indian project developer, has signed a long-term offtake agreement with SAR Maritime, a bunker supplier based in Sri Lanka. This deal involves the annual export of 250,000 metric tons of e-methanol, which will be utilized for bunkering operations in Sri Lanka. The e-methanol will originate from Agastya Green Fuels' planned production and export facility located at Mulapeta Port in Andhra Pradesh, India, which is designed to produce 1 million metric tons per year.
This development signifies a step towards decarbonizing maritime transport in the region. For freight forwarders and shippers, the availability of green methanol in Sri Lanka could impact vessel routing and carrier selection, as more shipping lines adopt alternative fuels to meet sustainability targets. It may also influence bunker prices for methanol-enabled vessels calling at Sri Lankan ports, potentially offering a more environmentally friendly, albeit possibly premium, fuel option. This initiative supports the broader industry trend towards reducing carbon emissions from shipping.
