₹2,300 Crore Kandla E-Methanol Project Signals Bigger Green-Fuels Investment Pipeline

Kandla, September 30, 2026: A proposed ₹2,300 crore e-methanol production project at Deendayal Port, Kandla, is set to become a significant investment in India’s emerging green-fuels economy, with the port location offering potential to build a larger ecosystem around renewable hydrogen, carbon capture and low-carbon shipping fuels.

The project will be developed in two phases. Phase I, involving an investment of around ₹1,200 crore, will produce 50 tonnes of e-methanol per day, while Phase II will add another 100 tonnes per day with approximately ₹1,100 crore of investment. Once both phases are operational, total planned production will reach about 150 tonnes per day.

The investment has significance beyond the plant itself. E-methanol production requires a combination of green hydrogen, renewable electricity and captured carbon dioxide, creating potential demand for electrolysers, renewable-power projects, carbon-capture systems, compressors, storage facilities and specialised engineering equipment.

The project's location at one of India's major commercial ports also creates opportunities for tank farms, pipelines, storage terminals, bunkering infrastructure and specialised marine-fuel handling facilities. Engineering, procurement and construction companies could benefit from contracts covering plant construction and associated port infrastructure.

The project could therefore act as an anchor investment for a broader green-fuels industrial cluster around Kandla, attracting additional private capital into renewable energy, hydrogen production, carbon management and clean shipping infrastructure.

With global shipping companies exploring lower-carbon fuels, the development also positions Indian ports to participate in the emerging international market for green methanol production, storage, export and marine bunkering.