Mitsubishi Gas Chemical secures 1mn tonnes of low-carbon methanol from Transition Industries
Transition Industries signed a long-term purchase agreement with Mitsubishi Gas Chemical for the annual supply of 1mn tonnes of ultra-low carbon methanol starting in 2029, from its Pacifico Mexinol project in Mexico.
| Sectors | Hydrogen Energy, Carbon, Blue Hydrogen, Methanol, Carbon Capture |
|---|---|
| Themes | Investments & Transactions, Contracts |
| Companies | Siemens Energy, International Finance Corporation |
| Countries | Japan, Mexico, United States |
Transition Industries LLC, a developer of large-scale low-carbon emission industrial projects, has entered into a purchase and sale agreement with Mitsubishi Gas Chemical Company Inc. (MGC) for the supply of ultra-low carbon methanol. The agreement will become effective upon the Final Investment Decision of the Pacifico Mexinol project, located near Topolobampo, in the state of Sinaloa, Mexico.
A major contract volume for a strategic industrial project
Under the terms of the agreement, Transition Industries will supply approximately 1 million metric tonnes of methanol per year to MGC starting in 2029. The methanol will be produced at the Pacifico Mexinol project, a 6,130-ton-per-day facility expected to become the world’s largest ultra-low carbon chemical production site. The project is co-developed by Transition Industries in partnership with the International Finance Corporation (IFC), a member of the World Bank Group.
MGC commits to long-term procurement
This is MGC’s first large-scale, long-term procurement contract for ultra-low carbon methanol. The Japanese company thus becomes a strategic offtake partner for the Pacifico Mexinol project. This collaboration aligns with MGC’s Carbopath™ initiative, which promotes carbon circularity across various industrial value chains, particularly in the Asia-Pacific region.
An internationally anchored partnership
The signing ceremony, held in Tokyo, brought together representatives from the US and Mexican embassies in Japan, as well as officials from Japan’s Ministry of Economy, Trade and Industry and Ministry of Foreign Affairs. Industrial and financial stakeholders in the project were also present, including IFC, Techint, Samsung Engineering & Architecture, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy.
The future Pacifico Mexinol facility is expected to produce around 350,000 tonnes of green methanol and 1.8 million tonnes of blue methanol annually from natural gas with carbon capture.
