Proposed Indian green fuel project will target bunker demand – CIST
Indian project developer CIST Technology plans to supply bio-methanol and green ammonia for bunkering in ports in India and Singapore from its proposed facility in Maharashtra, the company told ENGINE.
CIST is planning to build an integrated bio-methanol and green ammonia facility in Palghar, India through its arm, Yoki Green Energy.
Palghar is a coastal district in the western Indian state of Maharashtra along the Arabian Sea coastline. The district is set to host the deepwater Vadhavan port, approved by the Indian government in 2024.
The Palghar facility will combine biomass gasification and electrolyser capacity to produce 200,000 mt/year of bio-methanol and 100,000 mt/year of green ammonia, CIST co-founder Suyash Agrawal told ENGINE.
Green hydrogen production and biogenic CO2 capture will be integrated onsite, and renewable power will be procured from a local supplier, Agrawal confirmed.
“The cumulative production of biomethanol and green ammonia is dedicated for use as shipping fuel,” he added.
The Maharashtra government has committed to invest INR 40 billion ($414 million) in the project. CIST is targeting a final investment decision by the end of this year, with an initial bio-methanol production capacity of 50,000 mt/year expected to come online by 2028.
The facility is scheduled to ramp up to full production capacity by the end of 2029, Agrawal said.
“We're working on supplying [bio-methanol and green ammonia] to both bunker suppliers and shipping companies,” co-founder Chirag Rawat said.
"With bunker suppliers, we will supply the fuels and they will do the bunkering. In the discussions that we are having with shipping companies, we are proposing to supply the fuel to Indian ports or to Singapore on FOB [free on board]/CIF [cost, insurance and freight] basis. In no case is bunkering being directly done by us. We can supply to other ports globally as may be required and feasible," Rawat added.
By Konica Bhatt
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