MGC and Transition Partner on Low-Carbon Methanol

Transition Industries LLC has signed a long-term deal with Mitsubishi Gas Chemical Company, Inc. (MGC) for the supply and purchase of ultra-low carbon methanol. The agreement will kick in once the Pacifico Mexinol project hits its Final Investment Decision.

Under this deal, Transition Industries will deliver around one million metric tons of ultra-low carbon methanol every year to MGC. The supply will come from the Pacifico Mexinol facility, a massive 6,130 metric tons per day methanol plant located near Topolobampo, Sinaloa, Mexico. The site is expected to start operations in 2029 and is being jointly developed by Transition Industries and the International Finance Corporation (IFC), part of the World Bank Group.

Rommel Gallo, the Chief Executive Officer of Transition Industries, was of the opinion that the deal showed that both the parties involved were determined to fight climate change and promote the production of green chemicals. He further stated that the cooperation with such important companies as MGC was a major support for the worldwide change in the direction of low-carbon chemical raw materials and responsible industrial practices.

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For MGC, this marks its first major long-term procurement contract for ultra-low carbon methanol, making the company a central offtake partner for the Pacifico Mexinol project.

The signing ceremony took place in Tokyo with representatives from the U.S. and Mexican embassies in Japan, the Japanese ministries of Economy, Trade and Industry, and Foreign Affairs, as well as the State of Sinaloa. Other project collaborators, including IFC, Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy, were also present.

Once operational, Pacifico Mexinol will stand as the world’s largest single ultra-low carbon chemicals facility, producing roughly 350,000 metric tons of green methanol and 1.8 million metric tons of blue methanol annually through natural gas with carbon capture.