E-Methanol Plant

Context

Assam Petrochemicals Limited (APL) signed a Memorandum of Understanding (MoU) with the Deendayal Port Authority (DPA) to establish a 150-tonne-per-day (TPD) e-methanol plant at Kandla Port in Gujarat, marking a significant step towards India's transition to clean energy and green transformation.

About the E-Methanol Plant

• The project will involve a capital investment of over ₹1,200 crore. This will result in the creation of approximately 3,500 direct and indirect employment opportunities.
• Under this agreement, DPA will provide pipeline connectivity, storage, and fuel-handling infrastructure at the port. APL will establish a green methanol production facility within the port area, creating an integrated value chain for green marine fuel.
• E-methanol, or electro-methanol, is produced using green hydrogen and captured carbon dioxide, powered by renewable electricity. It is considered one of the most viable alternative fuels for sectors such as shipping, heavy industry, and chemical manufacturing, where direct electrification remains challenging.

Assam Petro-Chemicals Limited

• Assam-based APL Namrup operates one of the country's largest methanol facilities and recently expanded its production capacity.
• The partnership with DPA and Kandla is expected to help the company move up the value chain from conventional methanol to green and e-methanol production.

About Kandla Port

• Kandla was built in the 1950s as a major port in western India, after Karachi Port went to Pakistan after the partition of India and Pakistan.
• Kandla Port is located on the Gulf of Kutch on India's northwestern coast, approximately 256 nautical miles southeast of Karachi Port in Pakistan and 430 nautical miles north-northwest of Mumbai (Bombay) Port. It is India's largest port by cargo volume.
• As part of efforts to reduce carbon emissions, Kandla Port is being developed as a green bunkering hub to supply low- and zero-carbon fuel to ships plying international trade routes.
• Kandla Port in Gujarat, located on India's west coast, is one of the ports being developed as a green hydrogen hub under the National Green Hydrogen Mission.
• The mission aims to produce and export approximately 5 million tons of green hydrogen over the next 5 to 6 years. This initiative also contributes to India's commitment to achieving the target of net-zero carbon emissions by 2070, as outlined by the Prime Minister.