Assam Petro-Chemicals Limited (Assam Petro-Chemicals) has signed a memorandum of understanding with Deendayal Port to develop a 150 tonne (t) per day e-methanol facility at Kandla Port. The agreement covers preliminary planning, site assessment and coordination on logistics and permitting. The plant is described as an e-methanol facility intended to produce renewable methanol using low carbon inputs. The parties say the project aligns with national efforts to reduce emissions in fuel supply chains.

The project will be sited within the port complex to take advantage of existing import and export infrastructure and berthing capacity. E-methanol is expected to serve as a chemical feedstock and an alternative marine fuel, supporting cleaner operations across shipping and industrial applications. The memorandum sets out studies for supply chain integration, energy sourcing and technology selection without committing to a construction timeline. Further technical and commercial assessments will determine final design and output.

The partners emphasise potential regional economic benefits including enhanced cargo throughput, port revenue and ancillary services for logistics providers. Construction and operation phases are expected to create skilled and unskilled employment locally, complementing wider industrial activity at the port. The arrangement is intended to demonstrate the role of ports in facilitating low carbon fuel production and distribution in the coastal energy ecosystem. Coordination with regulatory authorities will be required to secure clearances and shore-side connections.

The MoU provides a framework for due diligence, environmental studies and financing talks and envisages development of detailed project reports and final agreements. Stakeholders will evaluate renewable energy options and carbon sourcing to align the plant with decarbonisation objectives. The signing marks a first step towards developing domestic e-methanol capacity at a major western port and signals growing interest in alternative fuels within the Indian maritime sector.