Union Minister Sarbananda Sonowal emphasized the strategic importance of the project, stating, “This MoU is a clear statement of intent that India will pursue economic growth without compromising environmental responsibility. APL’s e-Methanol project marks a major step in India’s Maritime Decarbonisation roadmap and supports the vision of Net Zero by 2070.”
Integrated Green Fuel Production at Kandla Port
Under the MoU, DPA will provide pipeline connectivity, storage, and fuel-handling infrastructure, while APL will establish the green methanol production facility within the port area, creating an integrated value chain for marine fuels. E-methanol, produced using green hydrogen and captured carbon dioxide with renewable energy, is a key alternative fuel for shipping, heavy industry, and chemical sectors.
Once operational, the plant will help Kandla Port emerge as a green fuel hub on global maritime routes, including the Singapore–Rotterdam corridor. Port-based fuel production ensures reduced logistics costs, seamless integration with shipping demand, and development of green bunkering infrastructure.
Boosting India’s Clean Energy and Methanol Economy
Sonowal highlighted that e-methanol meets international emission standards, enabling cleaner long-distance shipping. The project strengthens India’s position as a producer and supplier of green marine fuels. The Kandla port is also being developed as a Green Bunkering Hub under the National Green Hydrogen Mission, which aims to produce and export approximately 5 million tonnes of green hydrogen over the next 5–6 years.
“Under Prime Minister Narendra Modi’s leadership, India’s energy transition will be powered by green molecules such as hydrogen, methanol, ammonia, and bio-energy, transforming our industries, transport, and maritime sector,” Sonowal added. The project aligns with government initiatives including Aatmanirbhar Bharat, Make in India, and Make for the World.
Enhancing Assam’s Role in National Energy Transition
APL, based in Assam, operates one of India’s largest methanol facilities at Namrup and recently expanded production capacity. The Kandla MoU will enable APL to move from conventional methanol to e-methanol, further strengthening Assam’s contribution to India’s clean energy journey and national value chains.
The project is also expected to attract deep-sea vessels, increase cargo movement, and support trade growth across India. This collaboration reinforces India’s commitment to sustainable economic growth and green maritime logistics.m
