India's Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, along with the Chief Ministers of Gujarat and Assam, recently initiated the construction of the country's first port-based e-methanol production facility. Located at the Deendayal Port Authority (DPA) in Kandla, Gujarat, this plant is designed to produce 150 tonnes of green methanol daily.
The facility will leverage renewable power, water, and biogenic carbon dioxide in its production process. The primary objective is to supply this e-methanol to ships operating on the vital Asia-Europe International Trade Corridor. The Indian government has expressed confidence that the Kandla plant will achieve significantly competitive production rates compared to other global producers of green methanol.
For freight forwarders and shippers, this development signals a potential future reduction in the cost of green methanol as a marine fuel, particularly for vessels transiting the Asia-Europe route. Increased availability of competitively priced green fuels could accelerate the decarbonization efforts of shipping lines, which may eventually translate into more stable or lower green fuel surcharges. This initiative supports the broader industry shift towards sustainable shipping, offering a new source of alternative fuels in a key maritime region.