Transition Industries Partners with MGC for Green Methanol Supply
Transition Industries LLC has secured a significant long-term agreement with Mitsubishi Gas Chemical Company, Inc. (MGC) for the supply of ultra-low carbon methanol. This deal, which will take effect following the Final Investment Decision (FID) of the Pacifico Mexinol project, aims to produce approximately 1 million metric tons of methanol annually, with operations expected to commence in 2029. The partnership underscores a shared commitment to sustainability and climate change mitigation.
Details of the Agreement and Project Overview
The agreement between Transition Industries and MGC marks a pivotal moment in the global push for low-carbon chemical feedstocks. Under the terms, Transition Industries will provide MGC with ultra-low carbon methanol sourced from its Pacifico Mexinol facility, located near Topolobampo, Sinaloa, Mexico. This facility is designed to produce 6,130 metric tons of methanol per day, positioning it as the largest single ultra-low carbon chemicals facility worldwide upon its completion.
Rommel Gallo, CEO of Transition Industries, expressed pride in the collaboration with MGC, highlighting their mutual goal of addressing climate change. He stated, “Through strategic partnerships with key stakeholders and innovative companies like MGC, Transition Industries is driving the global adoption of low-carbon chemical feedstocks.” This agreement not only solidifies MGC’s role as a key offtake partner but also represents its first large-scale procurement contract for ultra-low carbon methanol.
Masahiko Naito, Division Director of MGC’s C1 Chemicals Division, emphasized the importance of this partnership in advancing carbon reduction efforts. He noted that the Pacifico Mexinol project is a significant step towards enhancing the global supply of ultra-low carbon methanol. The collaboration aligns with MGC’s ‘Carbopath™’ initiative, which promotes carbon circularity across various industries, aiming to reduce greenhouse gas emissions and support a sustainable future in Japan and the Asia-Pacific region.
Commemorative Signing Ceremony
A formal signing ceremony took place in Tokyo, Japan, attended by officials from the U.S. and Mexican embassies, as well as representatives from Japan’s Ministry of Economy, Trade and Industry, and the Ministry of Foreign Affairs. Other stakeholders involved in the project, including the International Finance Corporation (IFC), Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy, were also present to witness this significant agreement.
Once operational, the Pacifico Mexinol project is expected to produce around 350,000 metric tons of green methanol and 1.8 million metric tons of blue methanol annually, utilizing natural gas with carbon capture technology. This ambitious initiative not only aims to meet the growing demand for sustainable chemical solutions but also plays a crucial role in the global transition towards a greener economy.
