Agastya Green Fuels has signed a long-term green methanol offtake agreement with SAR Maritime Agencies (PVT) Ltd., a subsidiary of Sri Lanka’s SAR Group, for the supply of 250,000 tonnes per annum of green methanol compliant with the EU’s renewable fuels of non-biological origin (RFNBO) standard under RED III.

Agastya stated that the agreement is one of the largest green methanol supply partnerships in the Indian Ocean region and a key step towards creating a green maritime energy corridor linking India and Sri Lanka.

The green methanol is to be supplied from Agastya’s planned production hub at Mulapeta Port in Andhra Pradesh, India. The company says it is developing a one million tonne per annum green methanol export-oriented facility at the site, with a planned investment of $6bn over six years.

Under the partnership, the two companies intend to create green methanol storage, bunkering, and marine fuel infrastructure across Sri Lanka, with Colombo, Hambantota, and Trincomalee identified as target locations for clean-fuel bunkering operations.

Shashi K Reddy Arjula, Agastya Founder and Group CEO, remarked: “The Indian Ocean is emerging as the world’s next green fuel corridor. Agastya Green Fuels intends to be at its centre.”