E-methanol production cost at India's Kandla plant pegged at $750/mt
The production cost of e-methanol at the planned plant at Deendayal Port in Kandla, Gujarat, is estimated at $750/mt, India’s Ministry of Ports, Shipping and Waterways said in a statement.
IMAGE: India's Deendayal Port in Kandla, Gujarat. X of Deendayal Port Authority
The ministry described the estimate as a “much more competitive rate” compared with the global average e-methanol production cost of $1,300/mt cited in the statement.
However, the $750/mt figure represents the projected production cost, not the final bunker price. Additional costs, such as storage, handling, supplier margins and delivery charges, including any applicable barge or ex-wharf supply premiums, could increase the price paid by bunker buyers for fuel delivered to vessels.
The 150 mt/day e-methanol plant is a joint initiative between the Deendayal Port Authority and Assam Petro-Chemicals, owned by the Assam state government.
Government officials laid the foundation stone on 26 September, with the plant scheduled to begin production in phases next year.
The first phase is targeted for completion by January 2027, with an initial capacity of 50 mt/day. A further 100 mt/day is planned to be added by March 2027, bringing total capacity to 150 mt/day.
The entire production capacity is intended for bunkering vessels operating on the Asia–Europe shipping corridor, the ministry said.
By Konica Bhatt
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