Namrup-based APCL takes 24% stake in Rs 2,300-cr plant aimed at shipping sector
Namrup-based Assam Petro-Chemicals Ltd (APCL) is entering the emerging green-fuel supply chain through a Rs 2,300-crore e-methanol project at Kandla in Gujarat, with the fuel intended for vessels operating on the Asia-Europe trade route.
According to an update received here, the 150-tonne-per-day plant is being developed jointly by APCL and the Deendayal Port Authority (DPA) and will use renewable power, water and biogenic carbon dioxide to produce e-methanol.
The foundation stone for the project was laid at the DPA Exhibition Ground in Gandhidham on Saturday by Gujarat Chief Minister Bhupendra Patel, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Assam Chief Minister Himanta Biswa Sarma.
APCL will hold a 24 per cent share in the project, while DPA will hold the remaining 76 per cent. DPA’s contribution includes Rs 567.32 crore in equity capital, 75 acres of land, desalinated water and renewable energy in the form of green hydrogen.
The project will be developed in two phases. The first phase will add 50 tonnes per day of capacity at an investment of Rs 1,200 crore and is targeted for completion by January 2027. The second phase will add another 100 tonnes per day at an investment of Rs 1,100 crore, taking the total capacity to 150 tonnes per day, and is targeted for completion by March 2027.
The project authorities have described the facility as India’s first port-based e-methanol plant. The fuel is intended for use in shipping, with the project expected to supply vessels operating along the Asia-Europe International Trade Corridor.
Union minister Sonowal said Kandla is expected to develop into a green-fuel hub on the Singapore-Rotterdam route and that the plant could serve as a model for similar facilities at major ports across the country.
Gujarat Chief Minister Bhupendra Patel said the project would allow the state’s renewable-energy resources to be converted into fuel for ships and exported through Kandla.
For Assam, the project marks an expansion of APCL’s involvement in the methanol sector into e-methanol and the wider green-fuel economy. The company, based in Namrup in Dibrugarh district, commissioned a 500-tonne-per-day methanol plant in 2023.
Sarma highlighted APCL’s participation at Kandla, saying the project would carry the company’s presence from Namrup to the western coast. He also pointed to Assam’s hydropower, sunshine and other renewable-energy potential as the state looks to expand its role in the green-energy sector.
“Today, an Assam company carries that strength from Namrup to Kandla,” Sarma said.
According to the project authorities, the plant is expected to create more than 3,500 direct and indirect jobs and generate activity across the green-fuel value chain around Kandla, including transportation, storage, supply and other associated activities.
The authorities have also projected a production cost of around US$750 per tonne of e-methanol, compared with a stated global rate of about US$1,300 per tonne. The figures were cited as part of the project’s projected cost competitiveness.
The Kandla project comes amid India’s wider push to expand its maritime sector and develop alternative fuels for shipping. The Centre has announced plans to add 100 ships to the country’s merchant fleet over the next five years and aims to make India one of the world’s five largest ship-owning nations by 2047.
Other projects linked to the maritime expansion in Gujarat include a Rs 1,520-crore shipbuilding project being developed by DPA and Cochin Shipyard Ltd at Vadinar, while a proposed greenfield shipbuilding and repair cluster at Kuchhadi in Porbandar has received in-principle approval.
The Kandla e-methanol project is expected to stimulate activities linked to the production, transportation, storage and supply of green fuels around the port as India seeks to build a domestic green-fuel ecosystem for the maritime sector.
