Agastya Green Fuels has announced plans to develop a 1 million tonne per annum (mtpa) e-methanol production and export facility at Mulapeta Port in Andhra Pradesh, marking a significant step toward advancing green maritime fuels in the region.
The project is expected to be developed over the next six years, according to Agastya Group Chief Executive Officer Shashi K. Reddy Arjula, although the company has not disclosed a target date for commercial operations.
As part of the initiative, SAR Maritime has agreed to offtake 25% of the plant’s annual e-methanol output for marine bunkering operations in Sri Lanka. The partnership also includes plans to establish methanol storage and bunkering infrastructure at the ports of Port of Colombo, Port of Hambantota and Port of Trincomalee.
The companies said the collaboration aims to create a green maritime energy corridor linking India and Sri Lanka, supporting the shipping industry’s transition toward low-carbon fuels and strengthening regional clean energy supply chains.
E-methanol is increasingly being viewed as a viable alternative marine fuel as shipowners and ports seek to reduce greenhouse gas emissions and comply with evolving international decarbonisation regulations. The proposed facility at Mulapeta Port is expected to position India’s east coast as an emerging hub for the production and export of sustainable maritime fuels.