A Correspondent
Dibrugarh: Assam Petro-Chemicals Ltd (APL) signed an MoU with Deendayal Port Authority (DPA) to establish a 150 Tonnes Per Day (TPD) e-methanol plant at Kandla Port in Gujarat, marking a significant step toward India’s clean energy and green shipping transition. The MoU was signed in the presence of Assam Chief Minister Dr. Himanta Biswa Sarma and Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal, among others, at the Chief Minister’s Secretariat in Dibrugarh today.
More than Rs 1,200 crore will be invested as capital for the project. This project will create approximately 3,500 direct and indirect employment opportunities. The Union Minister congratulated DPA, Kandla and APL for coming together on this forward-looking project. “This MoU is a clear statement of intent that India will pursue economic growth without compromising environmental responsibility,” Union Minister Sonowal said.
Under the MoU, DPA will provide pipeline connectivity, storage and fuel-handling infrastructure at the port, while APL will establish a green methanol production facility within the port area, creating an integrated value chain for green marine fuels. 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 shipping, heavy industry and chemical manufacturing, sectors where direct electrification remains challenging.
Union Minister Sonowal said the partnership represents a strategic national initiative aligned with India’s long-term vision for clean energy, green shipping and sustainable economic growth.
Once commissioned, the facility is expected to enable Kandla Port to emerge as a major green fuel supply point along international maritime trade routes, including vessels operating on the Singapore–Rotterdam corridor. The minister said port-based fuel production offers multiple advantages, including reduced logistics costs, seamless integration with shipping demands, and the development of green bunkering infrastructure.
“As a marine fuel, e-methanol meets international emissions regulations & enables cleaner long-distance shipping. By promoting e-methanol, India is positioning itself not only as a consumer but also as a producer & supplier of green marine fuels. This project strengthens the role of Kandla port as a future-ready green port aligned with global sustainability benchmarks,” Sarbananda Sonowal said.
Kandla Port, located on India’s western coast in Gujarat, is among the ports being developed as a Green Hydrogen Hub under the National Green Hydrogen Mission. The mission aims to produce and export around 5 million tonnes of green hydrogen over the next 5 to 6 years. The initiative also contributes to India’s commitment to achieving net-zero carbon emissions by 2070, as outlined by the Prime Minister.
Sonowal also acknowledged the role of APL, one of India’s major methanol producers with decades of operational experience. “This collaboration reflects Assam’s expanding contribution to India’s clean energy journey and demonstrates how the North Eastern region is becoming an integral partner in national value chains. It will strengthen Assam’s role in India’s energy transition, support the Methanol Economy initiative and help reduce dependence on imported fossil fuels,” Minister Sonowal said. He said the collaboration supports the government’s goals of Aatmanirbhar Bharat, Make in India and Make for the World, while positioning India as a global leader in maritime decarbonisation.
APL, based in Assam, operates one of the country’s largest methanol facilities at Namrup and has recently expanded its production capacity. The partnership with DPA, Kandla, is expected to enable the company to move up the value chain from conventional methanol to green and e-methanol production.
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