Mitsubishi Gas/Transition Industries tie-up for low carbon methanol

Japan’s Mitsubishi Gas Chemical Company says it has entered into a sales and purchase agreement with US-based Transition Industries (TI) for the offtake of ultra-low carbon methanol.

TI is a company developing world-scale methanol and green hydrogen projects designed to achieve carbon neutrality, addressing climate change while promoting environmental and social sustainability. Together with the International Finance Corporation (IFC) of the World Bank Group and other partners, TI is currently planning the “Pacifico Mexinol Project” in Mexico, one of the world’s largest ultra-low carbon methanol production projects.

The project aims to produce 2.15 million tonnes/year of ultra-low carbon methanol (green and blue methanol).

The agreement will take effect upon the project’s Final Investment Decision (FID). Starting from the commencement of commercial operation, scheduled for 2029, MGC will offtake approximately 1 million tonnes/year of ultra-low carbon methanol, becoming a key offtaker for the project.

MGC says it is pursuing the development of Carbopath, an environmentally circular platform that achieves carbon recycling by producing methanol from emitted CO2, waste plastics, biomass, and other sources, and using it as fuel, raw material, and chemical feedstock.

This agreement marks MGCs first large-scale and long-term procurement contract for ultra-low carbon methanol.