India Defines Green Methanol Standard and Launches First Bunkering Trial

India's Ministry of New and Renewable Energy published the country's first standard definition for green methanol on February 27, 2026, setting an emissions threshold of no more than 0.44 kilograms of CO2 equivalent per kilogram of methanol across the synthesis process. Within weeks, Deendayal Port Authority in Kandla conducted India's first shore-to-ship methanol bunkering trial on April 2, 2026, validating infrastructure and operational readiness.

The MNRE definition mandates that green methanol must use green hydrogen as the primary fuel source, with carbon dioxide sourced from biogenic sources, direct air capture or existing industrial sources. Solar Energy Corporation of India also released a draft tender for production and supply of green methanol under the Strategic Interventions for Green Hydrogen Programme as part of the National Green Hydrogen Mission. Traditionally produced methanol — termed grey methanol — carries a carbon emission intensity of 1.46 to 3.95 kilograms of CO2 equivalent per kilogram of methanol, significantly above the new green standard.

The formal definition provides regulatory clarity for project developers, investors and industrial consumers considering green methanol as a chemical feedstock or alternative marine fuel. Methanol engine technology for marine applications is commercially available, and international shipping companies have begun ordering methanol-fuel-ready vessels. The Ministry of Ports, Shipping and Waterways projects demand for green methanol to reach 500,000 tonnes per annum by 2028-29 at Deendayal Port alone — one of 12 major operational ports and 251 total ports in India.

Parth Kumar, Programme Manager at the Centre for Science and Environment, described the green methanol developments as a crucial addition to India's green taxonomy progress across sectors, while noting that simultaneous development of demand creation infrastructure will be critical to scaling production. Large-scale deployment will depend on production costs of renewable electricity, electrolyser costs, green hydrogen availability and commercial readiness of carbon capture and utilisation technology. The green methanol tender and bunkering trial are expected to build investor confidence across the broader green technology value chain.

Key figure — 500,000 tonnes per annum demand projection by 2028-29