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, Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal among others at the Chief Minister’s Secretariat here today.
More than ₹1,200 crores will be invested as capital for the project. Around 3,500 direct and indirect employment opportunities will arise as a result of this project. The Union Minister congratulated DPA, Kandla and APL for coming together on the forward-looking project. “This MoU is a clear statement of intent that India will pursue economic growth without compromising environmental responsibility,” Union Minister Sarbananda Sonowal said.
Under the MoU, DPA will provide pipeline connectivity, storage and fuel-handling infrastructure at the port, while APL will establish the 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 Sarbananda 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. “This MoU represents not merely a commercial partnership, but a strategic national initiative aligned with India’s long-term vision for clean energy, green shipping and sustainable economic growth. This project marks a major step in India’s Maritime Decarbonisation roadmap, allowing us to cruise towards PM Narendra Modi ji’s vision of Net Zero by 2070,” Sarbananda Sonowal said.
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 demand and 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.
As part of its decarbonisation efforts, the Kandla port is also being developed as a Green Bunkering Hub to supply low- and zero-carbon fuels to ships operating on international trade routes. 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.
“Under the dynamic leadership of Prime Minister Shri Narendra Modi ji, India’s energy transition will be driven by green molecules such as green hydrogen, green methanol, green ammonia and bio-energy, which will power our industries, transport systems and maritime sector in the coming decades,” Sarbananda Sonowal said.
Once operational, the plant is expected to attract more deep-sea vessels to Kandla Port, increase cargo movement and support trade growth across the hinterland and the country. 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,” Sarbananda 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.
The MoU singing ceremony was also attended by Bimal Borah, Minister of Industries, Commerce and Public Enterprises and Cultural Affairs Department, Govt of Assam; Prasanta Phukan, Minister of Power, Skill, Employment and Entrepreneurship and Medical Education, Govt of Assam; Rameswar Teli, Member of Parliament in Rajya Sabha and former Union Minister of State as well as Taranga Gogoi, MLA, Naharkatia among others. The MoU was signed by Bikul Deka, Chairman, Assam Petro-Chemicals Ltd (APL) and Sushil Kumar Singh, Chairman, Deendayal Port Authority (DPA) while Mandeep Singh Randhawa, Director, MoPSW witnessed the ceremony.
In alignment with the vision of Prime Minister Narendra Modi, the Ministry of Ports, Shipping and Waterways (MoPSW) has launched initiatives including the Harit Sagar – Green Port Guidelines, promotion of renewable energy at ports, encouragement of alternative marine fuels and development of ports as energy and industrial hubs. Highlighting the importance of shipping in India’s economy, the Union Minister said nearly 90% of India’s trade by volume moves through ports, making decarbonisation of ports and shipping essential to meeting national climate goals.