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## Major Boost for Green Fuel: Assam Petro-Chemicals to Build ₹1100 Cr e-Methanol Plant in Gujarat
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2026-01-31 · News

Introduction:

In a significant move towards sustainable fuel production, Assam Petro-Chemicals Limited (APL) has partnered with Deendayal Port Authority to establish a cutting-edge e-methanol plant at Kandla port in Gujarat. This ambitious ₹1100 crore project aims to produce 150 tonnes per day (TPD) of e-methanol, marking a major step forward in India's quest for cleaner energy sources and reducing reliance on fossil fuels. The project promises significant environmental benefits and economic opportunities for the region.

Project Details and Significance:

The Memorandum of Understanding (MoU) between APL and Deendayal Port Authority signifies a strong commitment to developing green technologies and infrastructure. The proposed plant will utilize carbon capture technology to produce e-methanol, a renewable and versatile fuel that can be used in various applications, including transportation, power generation, and as a feedstock for the chemical industry.

E-methanol, also known as renewable methanol or green methanol, is produced using renewable energy sources, water, and captured carbon dioxide. This process significantly reduces greenhouse gas emissions compared to traditional methanol production methods that rely on fossil fuels. The project aligns with India's national goals for reducing carbon emissions and promoting a circular economy.

The choice of Deendayal Port as the location for the plant is strategic, given its well-established infrastructure, connectivity, and access to key markets. The port's proximity to potential consumers of e-methanol will facilitate efficient distribution and reduce transportation costs.

Economic and Environmental Impact:

The construction of the e-methanol plant is expected to have a positive impact on the local economy, creating jobs during the construction and operation phases. It will also stimulate growth in related industries, such as renewable energy, carbon capture technology, and transportation.

The environmental benefits of the project are equally significant. By capturing carbon dioxide and converting it into a valuable fuel, the plant will contribute to reducing greenhouse gas emissions and mitigating climate change. E-methanol can also be blended with gasoline to reduce vehicle emissions or used as a clean-burning fuel in marine transportation.

Assam Petro-Chemicals' Role and Vision:

Assam Petro-Chemicals Limited is a leading producer of methanol and other chemical products in India. The company's investment in e-methanol production demonstrates its commitment to innovation and sustainability. APL aims to leverage its expertise in methanol production to become a key player in the emerging market for green fuels.

The e-methanol plant project is a testament to APL's vision of building a sustainable future by embracing clean technologies and reducing its carbon footprint. It also reinforces the company's commitment to contributing to India's energy security and environmental goals.

Future Outlook:

The successful implementation of the e-methanol plant project at Deendayal Port could pave the way for similar initiatives in other parts of India. As the demand for green fuels continues to grow, more companies are likely to invest in e-methanol production and other renewable energy technologies.

The government's support for such projects through policy incentives and infrastructure development will be crucial in accelerating the transition to a cleaner energy economy. The APL e-methanol project serves as a model for public-private partnerships in promoting sustainable development and reducing carbon emissions.

Conclusion:

The collaboration between Assam Petro-Chemicals and Deendayal Port Authority to build a 150 TPD e-methanol plant represents a significant milestone in India's journey towards a sustainable energy future. This ₹1100 crore investment not only promises economic benefits but also contributes to reducing greenhouse gas emissions and mitigating climate change. The project exemplifies the potential of green technologies to drive economic growth while protecting the environment.

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