Kandla Port to Become Bunkering Hub with ₹3,500 Crore E-Methanol Project.

The Deendayal Port Authority (DPA) in Kandla, Gujarat, is planning to establish a ₹3,500 crore project to produce e-methanol, a synthetic fuel, with the goal of becoming a key bunkering hub for ships traveling between the Port of Rotterdam and Singapore.

Sushil Kumar Singh, Chairman of the DPA, told businessline that the port aims to provide e-methanol as a bunker fuel for ships on this major international route. “The projections are that around 200 ships will be plying on that route by 2030 and they will require e-methanol as a bunker fuel,” he said. "Though they will have sources in Singapore and Rotterdam, we at Kandla are planning to be a supply point."

E-methanol is a synthetic liquid fuel created by combining green hydrogen produced through electrolysis and captured carbon dioxide.

Singh also revealed that the port is in talks with various industries to set up a large-scale plant with a production capacity of 1.5-2 lakh tonnes per annum. "The project cost is estimated to be around ₹3,500 crore and we will be floating an Expression of Interest (EoI) in this regard within the next one month,” he added.

This strategic move by Kandla aligns with global efforts to decarbonize the shipping industry. In 2022, the Maritime and Port Authority of Singapore (MPA) and the Port of Rotterdam signed a memorandum of understanding to create the Rotterdam-Singapore Green and Digital Shipping Corridor. This initiative aims to reduce emissions on the 15,000-kilometer shipping lane by promoting the use of low- and zero-carbon fuels, including e-methanol and bio-methanol.