Agastya Group has signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh to develop the Agastya Green Fuels Hub at Mulapeta Port in Srikakulam District.

The proposed project on India’s east coast will require an investment of more than ₹54,000 crore, or about $6.5bn, the group stated.

The company said the hub is planned around a 1 million-tonne-per-year e-methanol export-oriented unit, targeting markets including Japan, South Korea, Singapore and Europe.

The development will combine large-scale green hydrogen production, green methanol manufacturing, carbon capture and utilisation (CCU), renewable energy integration, port-based export infrastructure and an AI-powered energy management system called Agastya GEMS.AI.

Agastya noted that the project would position Andhra Pradesh as a hub for sustainable marine fuels and green industrial products.

The Indian firm added that the facility will produce green methanol compliant with EU renewable fuels of non-biological origin (RFNBO) rules under RED III, supporting its plan to export the fuel to shipping and industrial customers.

Agastya thanked several state bodies for their involvement, including the Andhra Pradesh Economic Development Board, Andhra Pradesh Maritime Board, New and Renewable Energy Development Corporation of Andhra Pradesh, and Andhra Pradesh Industrial Infrastructure Corporation.

The announcement also cited support from Andhra Pradesh Chief Minister Nara Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan Konidela.