Transition Industries and Mitsubishi Gas Chemical Sign Long-Term Agreement for the Supply of Ultra-Low Carbon Methanol
Transition Industries LLC, a leading developer of world-scale, net-zero carbon emissions methanol and hydrogen projects, has signed a long-term sales and purchase agreement with Mitsubishi Gas Chemical Company, Inc. (MGC) for the offtake of ultra-low carbon methanol.
Under the terms of the agreement—effective upon the Pacifico Mexinol Project’s Final Investment Decision (FID)—Transition Industries will supply MGC with approximately 1 million metric tons of ultra-low carbon methanol per year from its flagship Pacifico Mexinol project. The facility, located near Topolobampo, Sinaloa, Mexico, will have a daily methanol production capacity of 6,130 metric tons and is expected to begin operations in 2029. Transition Industries is jointly developing the project in collaboration with the International Finance Corporation (IFC), a member of the World Bank Group.
The Pacifico Mexinol Project represents a key step forward in the global transition to sustainable chemical production. Once operational, the facility is expected to be the largest single ultra-low carbon chemical plant in the world, producing approximately 350,000 metric tons of green methanol and 1.8 million metric tons of blue methanol annually using natural gas with carbon capture technology. This approach will significantly reduce carbon emissions compared to conventional methanol production methods.
Commitment to Sustainability and Carbon Reduction
Rommel Gallo, Chief Executive Officer of Transition Industries, emphasized the significance of the collaboration with MGC in promoting sustainability and the use of low-carbon chemical feedstocks.
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,” said Gallo. “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.”
The partnership underscores both companies’ commitment to carbon reduction, energy transition, and sustainability. The Pacifico Mexinol Project will not only expand the supply of ultra-low carbon methanol but also serve as a model for large-scale, environmentally responsible industrial production.
MGC’s First Large-Scale Ultra-Low Carbon Methanol Contract
This agreement marks MGC’s first large-scale and long-term procurement contract for ultra-low carbon methanol, establishing the company as a key offtake partner for the Pacifico Mexinol project. The methanol will be supplied to support MGC’s growing initiatives focused on decarbonization and carbon circularity in the chemical industry.
Masahiko Naito, Division Director of the C1 Chemicals Division at MGC, expressed enthusiasm for the partnership and highlighted its alignment with MGC’s sustainability goals:
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,” said Naito. “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 across the broader Asia-Pacific region.”
MGC’s Carbopath™ initiative is a central component of its strategy to achieve carbon neutrality through methanol-based recycling and energy solutions. The agreement with Transition Industries will enable MGC to secure a stable and scalable supply of sustainable methanol, furthering its efforts to reduce emissions in its manufacturing processes and downstream applications.
Global Collaboration and Diplomatic Support
To commemorate the signing of the agreement, a ceremony was held in Tokyo, Japan, attended by senior officials from the United States Embassy to Japan, the Mexican Embassy to Japan, the Japanese Ministry of Economy, Trade and Industry (METI), the Japanese Ministry of Foreign Affairs, and representatives from the State of Sinaloa.
The event also brought together key stakeholders from across the Pacifico Mexinol Project, including IFC, Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy. The strong international attendance underscores the global importance of the Pacifico Mexinol Project as a pioneering effort in the decarbonization of chemical production and energy transition.
A Global Step Toward Decarbonization
Once operational, the Pacifico Mexinol facility will play a critical role in the global methanol market and the transition to cleaner energy sources. Its combination of green and blue methanol production—supported by advanced carbon capture technologies—positions it as a major contributor to the reduction of industrial emissions worldwide.
The long-term agreement between Transition Industries and MGC reflects a shared vision for a sustainable future, advancing innovation in low-carbon production and strengthening the supply chain for ultra-low carbon methanol in the Asia-Pacific region. Through this collaboration, both companies aim to accelerate the shift toward a low-emission, circular economy that supports industrial growth while protecting the planet.
About Transition Industries LLC
Transition Industries LLC, based in Houston, Texas, is a developer of world-scale, net-zero carbon emissions methanol and hydrogen projects in North America to address climate change and promote environmental and social sustainability. For additional information about Pacifico Mexinol or Transition Industries
About Mitsubishi Gas Company
Mitsubishi Gas Chemical Company is a unique technology-oriented manufacturer producing more than 90% of its products using proprietary technologies. Committing itself to creating new technology and value, MGC boasts a broad range of products, from basic chemicals such as methanol, xylene, hydrogen peroxide, to high-performance products such as engineering plastics, materials for printed wiring board and oxygen absorbers. MGC will contribute to societal growth and harmony by creating a wide range of value through chemistry.
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