India to Get Its First Port-Based E-Methanol Production Facility
India is making further progress in positioning itself as a global leader in the export of alternative fuels in shipping. Ports Minister Sarbananda Sonowal and Gujarat Chief Minister Bhupendra Patel recently participated in laying the foundation for an e-methanol plant at Deendayal Port Authority (DPA) in Kandla, Gujarat. This is the first port-based e-methanol production facility in India. The project is part of the government’s wider campaign to promote cleaner maritime transport in the country.
The facility is also poised to make India a competitive global supplier of green shipping fuels. The plant is scheduled to produce green methanol at much lower cost compared to other global producers, just $750 per ton, against a global rate of $1,300 per ton.
Recent research has highlighted three Indian ports with strategic advantages to support green fuel production. DPA on India’s west coast is one of the mentioned ports, which is already hosting major investments in green hydrogen production. Last year, the port commissioned L&T Energy to build a 1 MW green hydrogen plant as part of a larger 10MW project.
Again, DPA in April conducted India’s first methanol bunkering demonstration, which at the time was said to be a lead-up activity to the e-methanol plant. With the facility now launched, India’s role in global maritime decarbonization is firming up. The $240 million plant is expected to produce 150 tons per day of e-methanol once fully built. It will use green hydrogen, water, and biogenic CO2 to produce the e-methanol. DPA is targeting to become a major bunkering hub for methanol-powered vessels plying the Asia-Europe trade corridor.
“The long coastline of Gujarat will now power the world’s ships through Kandla. This plant turns our renewable energy strength into an export,” said Bhupendra Patel.
The plant is a joint initiative between DPA and Assam Petro-Chemicals Ltd. (APCL), and installation will be done in phases, as scalable modules. Phase 1 will have 50 tons per day capacity at an investment of $125 million. The targeted completion date is January 2027. Phase 2 will add a further 100 tons per day at a cost of $115million, to be completed in March 2027. DPA will contribute 76 percent of the project’s capital while APCL will contribute the remaining 24 percent.
Maersk Completes First Ethanol Bunkering in US Testing Bioethanol
Maersk reports it recently completed the first ship-to-ship commercial ethanol bunkering of a container vessel in the United States. It was a 100 percent bioethanol blend from U.S. producer Poet as part of an ongoing trial by Maersk of ethanol and alternative fuels.
The bunkering took place aboard the Tangier Maersk, a recently delivered mid-size vessel built in China and delivered in February this year. The ship, which is 270 meters (900 feet) in length, has a capacity of 9,000 TEU and is equipped with a dual-fuel engine able to operate on methanol. Maersk previously explained that, because ethanol and methanol are both alcohols, they share similar properties, and it was testing interoperability, or swapping ethanol onto its dual-fuel vessels.
POET, which is headquartered in South Dakota and bills itself as the world’s largest bioethanol producer, supplied plant-based bioethanol for the first 100 percent bioethanol bunkering operation in the United States. The company points out that it was a cooperation that also involved Kirby Corporation, which supported the marine bunkering operation and transportation of the fuel. Port of Houston provided critical port coordination and infrastructure, while the U.S. Coast Guard supported the regulatory requirements necessary to conduct the bunkering operation.
Maersk reported that the operation was providing valuable real-world experience. It said it would provide valuable insight into the operational, infrastructure, sourcing, and supply chain considerations for using ethanol as a marine fuel. While ethanol benefits from an established production base, Maersk said that existing infrastructure and compatibility with alcohol-enabled vessel technology, scalable future fuel pathways would also depend on fuel availability, regulation, and operational readiness across the maritime value chain.
The operation builds on previous ethanol trials aboard Laura Maersk and Antonia Maersk and reflects Maersk’s continued commitment to exploring and advancing credible pathways to drive progress within the shipping industry’s energy transition.
The company announced in December 2025 that it had conducted the initial test using E10 (10 percent ethanol) in an ethanol-methanol blend to confirm safe integration and performance. They reported they would be looking at issues including ignition quality, how the fuel burned, potential corrosion issues, and testing the emissions to see if there were differences. Building on a successful initial trial, the company planned to blend 50 percent ethanol with 50 percent methanol in a test onboard the vessel Laura Maersk. It said it was also aiming for a 100 percent ethanol test.
The U.S. is the largest ethanol producer in the world, followed by Brazil, and combined they comprise approximately 80 percent of the world market. Poet says that American-made bioethanol is already produced at a commercial scale, with the company reporting that it produces more than three billion gallons annually across its network of 35 bioprocessing facilities.
Maersk says that it will continue to explore alternative fuels and the different availabilities as it works to decarbonize its operations. It believes, as do many sources, that the future will consist of a range of different fuels to achieve the goals for shipping.
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