Mitsubishi Gas Chemical Company Inc. has entered into a sales and purchase agreement with Transition Industries LLC for the offtake of ultra-low carbon methanol.
In connection with the signing of this agreement, a signing ceremony has been held in the presence of officials from the embassies of both the US and Mexico.
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 Corp. (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. This project aims to produce 2.15 million tpy 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 tpy of ultra-low carbon methanol, becoming a key offtaker for the project.
By supplying ultra-low carbon methanol – a product with reduced environmental impact—for fuel as well as a wide range of chemical applications – MGC will respond effectively to growing demand and promote methanol-based decarbonisation in Japan and across Asia.
MGC is pursuing the development of CarbopathTM, 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. It will contribute to the stable supply of ultra-low carbon energy and materials primarily in Japan and the broader Asian region, while supporting the creation and expansion of green markets.