Guwahati, Jan 30: Assam Petro-Chemicals Ltd (APL) has signed a Memorandum of Understanding (MoU) with Deendayal Port Authority (DPA) to establish a 150 tonnes-per-day (TPD) e-methanol plant at Kandla Port in Gujarat. The project marks a step towards promoting clean energy and green shipping in India.

The MoU was signed at the Chief Minister’s Secretariat in Dibrugarh, Assam, in the presence of Assam Chief Minister Himanta Biswa Sarma and Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, along with other senior officials.

The proposed project involves an estimated capital investment of over ₹1,200 crore and is expected to generate around 3,500 direct and indirect employment opportunities. Under the agreement, Deendayal Port Authority will provide pipeline connectivity, storage and fuel-handling infrastructure at the port, while APL will set up the green methanol production facility within the port area.

E-methanol, also known as electro-methanol, is produced using green hydrogen and captured carbon dioxide powered by renewable energy. It is considered a viable alternative fuel for shipping, heavy industry and chemical manufacturing, where direct electrification is difficult.

Speaking at the event, Sarbananda Sonowal said the partnership aligns with India’s long-term goals for clean energy, green shipping and sustainable economic growth. He stated that the project is part of India’s maritime decarbonisation roadmap and contributes to the country’s target of achieving net-zero carbon emissions by 2070.

Once commissioned, the facility is expected to help Kandla Port emerge as a key green fuel supply hub along major international maritime trade routes, including the Singapore–Rotterdam corridor. Port-based fuel production is expected to reduce logistics costs, support green bunkering infrastructure and improve integration with shipping demand.

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 port is also being developed as a Green Bunkering Hub to supply low- and zero-carbon fuels to ships operating on international routes. The National Green Hydrogen Mission aims to produce and export around 5 million tonnes of green hydrogen over the next five to six years.

The project is expected to attract more deep-sea vessels to Kandla Port, increase cargo movement and support trade growth across the hinterland. Sonowal also highlighted the role of APL, which operates one of India’s major methanol production facilities at Namrup in Assam, and noted that the partnership would enable the company to move from conventional methanol to green and e-methanol production.

He further said the collaboration reflects Assam’s growing contribution to India’s clean energy initiatives and strengthens the participation of the North Eastern region in national value chains. The project is also aligned with initiatives such as Aatmanirbhar Bharat, Make in India and Make for the World.

The MoU was signed by Bikul Deka, Chairman of Assam Petro-Chemicals Ltd, and Sushil Kumar Singh, Chairman of Deendayal Port Authority, in the presence of Mandeep Singh Randhawa, Director, Ministry of Ports, Shipping and Waterways.

The ceremony was attended by several dignitaries, including Bimal Borah, Minister of Industries, Commerce and Public Enterprises and Cultural Affairs Department, Government of Assam; Prasanta Phukan, Minister of Power, Skill, Employment and Entrepreneurship and Medical Education, Government of Assam; Rameswar Teli, Rajya Sabha Member of Parliament; and Taranga Gogoi, MLA from Naharkatia.

The Ministry of Ports, Shipping and Waterways has launched multiple initiatives to promote green ports and sustainable shipping, including the Harit Sagar – Green Port Guidelines, increased use of renewable energy at ports and the promotion of alternative marine fuels. According to the ministry, nearly 90 per cent of India’s trade by volume moves through ports, making decarbonisation of ports and shipping a key component of the country’s climate strategy.