Wedoany.com Report-Nov. 12, Transition Industries has signed a long-term methanol sales and purchase agreement with Mitsubishi Gas Chemical Co. (MGC) for the supply of ultra-low carbon methanol. The agreement will take effect once the Pacifico Mexinol project reaches its final investment decision (FID). Under the terms, Transition Industries will supply MGC with approximately 1 million metric tons per year (MMtpy) of ultra-low carbon methanol from the Pacifico Mexinol facility, a 6,130-ton-per-day methanol production plant located near Topolobampo, Sinaloa, Mexico. The project is expected to begin operations in 2029.

Transition Industries is jointly developing the Pacifico Mexinol project with the International Finance Corp. (IFC), a member of the World Bank Group. Once operational, the facility is projected to be the world’s largest single ultra-low carbon chemicals plant, producing around 350,000 tpy of green methanol and 1.8 MMtpy of blue methanol derived from natural gas with carbon capture technology.

Rommel Gallo, CEO of Transition Industries, said: “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.”

This agreement marks MGC’s first large-scale and long-term procurement contract for ultra-low carbon methanol, positioning the company as a major offtake partner for the Pacifico Mexinol project. MGC aims to strengthen its low-carbon strategy and enhance sustainability efforts through this collaboration.

Masahiko Naito, Division Director of MGC’s C1 Chemicals Division, stated: “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.”

A signing ceremony was held in Tokyo, Japan, attended by representatives from the U.S. Embassy to Japan, the Mexican Embassy to Japan, Japan’s Ministry of Economy, Trade and Industry, the Ministry of Foreign Affairs, and the State of Sinaloa. Other stakeholders included IFC, Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy.

The agreement highlights growing international collaboration in low-carbon chemical production and supports the broader global transition toward sustainable industrial practices.