- Why in news
- On 26 September 2026, the Gujarat and Assam Chief Ministers and Union Minister Sarbananda Sonowal laid the foundation stone of India's first port-based e-methanol plant at Deendayal Port, Kandla.
- What it is
- e-Methanol is a green fuel made by combining green hydrogen (from renewable power and water) with captured CO2. Ships can use it in place of fossil bunker fuel, which cuts shipping emissions. The Kandla plant is a joint venture of Deendayal Port Authority and Assam Petro-Chemicals Ltd.
- Partners and equity
- Deendayal Port Authority and Assam Petro-Chemicals Ltd (Namrup) hold the project in a 76:24 capital ratio.
- Investment
- Total cost is Rs 2,300 crore: Rs 1,200 crore for Phase I and Rs 1,100 crore for Phase II.
- Inputs
- The plant uses renewable power, water and biogenic CO2. This makes the methanol 'e-methanol', a green fuel.
- Climate link
- India's net zero target is 2070, announced at COP26 in Glasgow in 2021.
Don’t confuse with e-methanol vs bio-methanol: e-Methanol is made from green hydrogen and captured CO2. Bio-methanol is made from biomass or biogas. Both are called green methanol.
Don’t confuse with Green vs grey methanol: Grey methanol is made from natural gas or coal and emits a lot of CO2. Green methanol uses renewable inputs.
Environment: Prelims tests bodies, programmes and the law behind them; Mains asks why plans fall short.
Why it matters
- Gives ships a low-carbon fuel and supports India's net zero 2070 goal.
- Makes India a possible green fuel exporter and bunkering hub on the Singapore–Rotterdam route.
Problems
- Supply of green hydrogen and biogenic CO2 at scale and low cost.
- The claimed cost of US$750 per tonne against a global US$1,300 depends on cheap renewable power and demand from shipping lines.
Way forward
- Build bunkering infrastructure and fuel standards at ports to secure long-term buyers.
- Replicate the modular model at other major ports with renewable power links.
- 2025Mains GS3 · Q6How India can achieve energy independence via clean technology, biotechnology's role
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- 2026Prelims Q45Which statements on green hydrogen are correct: CCS-based, electrolysis, NGHM target
- 2023Prelims Q60Which green hydrogen uses are valid: direct IC fuel, natural gas blend, fuel cell
- 2024Prelims Q37Which exhaust emission comes from hydrogen-powered fuel cell electric vehicles?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Green fuel for shipping is a lasting energy topic, but this is a foundation stone with few facts a question can turn on. Science and tech is 17% of Prelims questions.
Worth revising until Prelims 2028: most news questions come within two years of the event.