Transition Industries and Mitsubishi Gas Chemical sign SPA for ultra-low carbon methanol

Under the agreement, which will become effective upon the project’s final investment decision (FID), Transition Industries will supply MGC approximately 1 million tpy of ultra-low carbon methanol from its Pacifico Mexinol project, a 6130 tpd methanol production facility near Topolobampo, Sinaloa, Mexico, expected to be in operation in 2029. Transition Industries is jointly developing Pacifico Mexinol with the International Finance Corp. (IFC), a member of the World Bank Group.

Rommel Gallo, CEO of Transition Industries, commented: “We are proud to announce the signing of a long-term ultra-low carbon methanol purchase and sale agreement with MGC. We are honoured to collaborate with MGC in our shared mission to address climate change and supply ultra-low carbon methanol to the Pacific Basin market. Through strategic partnerships with key stakeholders and innovative companies like MGC, Transition Industries is driving the global adoption of low-carbon chemical feedstocks and leading the advancement of sustainable industry practices.”

This agreement marks MGCs first large scale and long-term procurement contract for ultra-low carbon methanol and makes MGC a key offtake partner for the Pacifico Mexinol project.

Masahiko Naito, Division Director, C1 Chemicals Division for MGC, said: “We are delighted to enter into this long-term agreement with Pacifico Mexinol, a company invested in by Transition Industries that shares our commitment to advancing carbon reduction and sustainability. The Pacifico Mexinol Project represents an important milestone in expanding the global supply of ultra-low carbon methanol. Through this collaboration, MGC aims to further promote methanol-based decarbonisation and strengthen our ‘Carbopath^TM’ initiative, which drives carbon circularity across multiple industries. By ensuring a stable supply of ultra-low carbon methanol, we will contribute to reducing greenhouse gas emissions and supporting the transition toward a more sustainable society in Japan and in the broader Asia-Pacific region.”

When it initiates operations, Pacifico Mexinol is expected to be the largest single ultra-low carbon chemicals facility in the world – producing approximately 350 000 tpy of green methanol and 1.8 million tpy of blue methanol from natural gas with carbon capture.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/18022026/transition-industries-and-mitsubishi-gas-chemical-sign-spa-for-ultra-low-carbon-methanol/