‘Inaugural’ biomethanol production site in India planned at Kandla

August 18, 2025, by Sara Kosmajac

India’s Deendayal Port Authority (DPA), Kandla, has published a tender for the establishment of the country’s inaugural port-based biomethanol production facility on an Engineering, Procurement and Construction (EPC) basis.

According to DPA, once operational, the site is to manufacture around 10 tonnes of biomethanol per day. The production will involve converting biomass into fuel via oxy-steam gasification, which is a thermochemical process that turns solid fuels such as biomass and waste into a synthesis gas (syngas) using a combination of oxygen and steam as the gasifying agent.

As disclosed, the scope of this initiative encompasses the design, engineering, procurement, as well as construction, commissioning, and product certification. Bidders are asked to outline envisaged plant life, warranties, capital expenditure and operating costs.

The opening of the facility and the start of the production of this greener fuel are expected to play a ‘vital’ role in India’s path to net zero, particularly as the announcement comes on the heels of a plan to also commission a 1 MW green hydrogen power plant at Kandla Port.

Namely, as previously disclosed, Kandla Port saw the inauguration of the facility, also developed by the Deendayal Port Authority, at the end of July this year, marking a “major step towards fulfilling PM Shri Narendra Modi ji’s 2030 vision.”

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What is more, at the beginning of this year, India’s Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal, revealed that Kandla Port was to undergo ‘massive’ revitalization via two major infrastructure projects worth ₹570 billion (about $6.6 billion), with the overarching goal being ensuring efficient and fit-for-the-future operations.

On a wider scale, India has endeavored to breathe new life into its maritime industry and ensure that the industry operates in line with increasingly strict environmental standards, especially those set by the International Maritime Organization (IMO). The focus has been on strengthening both the shipping/shipbuilding sectors, as well as the alternative fuels manufacturing landscape.

Regarding the former, the nation’s government allocated ₹2 trillion (around $23.8 billion) in March 2025, which is to go toward revamping the maritime sector and positioning India as one of the world’s shipbuilding leaders.

When it comes to sustainable fuel/energy sources, beyond the interest in alternatives such as (bio)methanol and hydrogen, India is soon to see the opening of its ‘first’ independent ammonia storage terminal. As previously reported, the site will be developed by AVTL, a joint venture between Aegis Logistics Limited and Vopak India.

Per Vopak India, an arm of the Netherlands-headquartered Royal Vopak, the terminal is envisioned as a third-party, independent storage facility with a capacity of around 36,000 metric tons. It is due to be commissioned by the end of next year.

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