India is developing a Rs 2,300-crore e-methanol plant at Kandla in Gujarat to produce lower-carbon fuel for ships and position the country as a potential supplier of green fuels to the global shipping industry, CNBC TV18 reported.
The project marked a new step in India’s maritime energy transition, said, Union Ports, Shipping and Waterways Minister Sarbananda Sonowal.
The plant is being developed by the Deendayal Port Authority and Assam Petro-Chemicals Ltd and will have a total production capacity of 150 tonnes of e-methanol a day.
The project will be implemented in two phases. The first phase, involving an investment of around Rs 1,200 crore, will produce 50 tonnes per day and is expected to be completed by January 2027. The second phase, costing about Rs 1,100 crore, will add another 100 tonnes per day and is scheduled for completion by March 2027.
The plant will use renewable electricity, water and biogenic carbon dioxide (COâ‚‚) to produce e-methanol. The fuel is planned to be supplied to ships operating on the Asia-Europe International Trade Corridor.
What is e-methanol?
Methanol is an alcohol widely used as an industrial raw material for products such as plastics, paints and chemicals. It can also be used as a fuel in vehicles and ships.
E-methanol is produced using renewable electricity, green hydrogen and captured COâ‚‚. Renewable electricity is first used to split water and produce hydrogen. The hydrogen is then combined with captured COâ‚‚ to produce e-methanol.
The carbon dioxide can be captured from industrial facilities or obtained from biogenic sources, including emissions associated with biological materials. Direct air capture is another potential source.
Potential for shipping
The shipping industry is seeking alternatives to conventional fossil fuels as it faces pressure to reduce greenhouse-gas emissions. Long-distance shipping requires large amounts of energy, making battery-based propulsion difficult for many applications.
Methanol is among the alternative fuels being considered by the sector, with some new vessels being designed to operate on methanol-based fuels. Certain existing vessels can also be modified to use such fuels.
E-methanol produced using renewable energy and captured carbon could offer lower lifecycle emissions than conventional fossil fuels, depending on how the fuel is produced.
However, e-methanol does not eliminate shipping emissions completely. Its potential benefit lies in reducing overall carbon emissions and dependence on fossil fuels as part of the sector’s transition towards cleaner energy sources.
