Decarbonization Mitsubishi Gas Chemical Partners with TI for Ultra-Low Carbon Methanol

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Under a sales and purchase agreement signed between the two parties, Mitsubishi Gas Chemical will offtake approximately 1 million tons per year of ultra-low carbon methanol from Transition Industries’ ‘Pacifico Mexinol Project’ in Mexico which is expected to be one of the world’s largest ultra-low carbon methanol production projects.

Tokyo/Japan – Mitsubishi Gas Chemical Company recently entered into a sales and purchase agreement with Transition Industries (TI) for the offtake of ultra-low carbon methanol. In connection with the signing of this Agreement, a signing ceremony was held on the same day in the presence of officials from the embassies of both the United States 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 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 (hereinafter “the Project”). The Project aims to produce 2.15 million tons per 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 tons per year 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 decarbonization in Japan and across Asia.

MGC 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. 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.

Rommel Gallo, CEO of TI, commented: “We are proud to announce the signing of a long-term ultra-low carbon methanol purchase and sale agreement with MGC, a recognized global leader in chemical manufacturing and marketing. We are honored 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.”

Masahiko Naito, Division Director, C1 Chemicals Division for Mitsubishi Gas Chemical Company, commented: “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 decarbonization and strengthen our ‘Carbopath’ 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.”

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