Tender to support 500,000 tonnes green methanol production in works

The renewable energy ministry is preparing to float a tender in the coming months to support production of half a million tonnes of green methanol a year, people aware of the development said. The low-carbon, renewable fuel is likely to be procured by Deendayal Port Authority under medium or long-term contracts and supplied to shipping companies.

Deliberations are ongoing on the guidelines for the green methanol tender, the people said. The guidelines will clarify whether the tender will adopt the bucket filling approach of awarding the contract sequentially to the lowest bidders, whether the bids will be sought in dollars and the duration of the procurement. The details, including the likely incentive mechanism, are expected to be announced by March, one of the people said. The tender will come under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme of the National Green Hydrogen Mission (NGHM), which was launched in 2023 with an approved investment of ₹19,400 crore.

Green methanol is liquid at ambient temperature and pressure. It can be handled at docks with existing liquid fuel infrastructure, making the transition easier than other alternative fuels.


India has been looking to expand green methanol for use in industries where reducing emissions is difficult, particularly shipping. Docking and refuelling facilities (bunkering) plays a key role in the adoption of green methanol in the shipping industry.

Recently, Assam Petro-Chemicals Ltd and Gujarat-based Deendayal Port Authority signed a memorandum of understanding to have a 150 tonnes per day e-methanol plant at Kandla Port, valued at over ₹1,200 crore. The facility is expected to produce methanol using green hydrogen and captured carbon dioxide, supporting cleaner fuels for shipping, industrial use and export markets.