HOUSTON - Monday, 28. October 2024
(BUSINESS WIRE)--Transition Industries LLC announced that it has signed a Letter of Intent (LOI) with Mitsubishi Gas Chemical Company, Inc. (MGC) to enter into a long-term Methanol Sales Agreement (MSA). Under the MSA, Transition Industries intends to supply MGC approximately 1 million MT per annum of ultra-low carbon methanol from its Pacifico Mexinol project, a 6,145 MT per day methanol production facility near Topolobampo, Sinaloa, Mexico, expected to be in operation in 2028. Transition Industries is jointly developing Pacifico Mexinol with the International Finance Corporation (IFC), a member of the World Bank Group. The terms of the LOI and MSA were not disclosed.
When it initiates operations, Pacifico Mexinol is expected to be the largest single ultra-low carbon chemicals facility in the world - producing approximately 350,000 MT of green methanol and 1.8 million MT of blue methanol annually from natural gas with carbon capture.
Rommel Gallo, CEO of Transition Industries, commented: “We are pleased to announce our Letter of Intent for a long-term Methanol Sales Agreement with Mitsubishi Gas Chemical Company, one of the leading manufacturers and marketers of chemicals in the world. We are honored to work with MGC in our joint efforts to address climate change and supply the Pacific Basin with ultra-low carbon methanol.”
Masahiko Naito, Division Director, C1 Chemicals Division for Mitsubishi Gas Company, said: “As one of the major producers and suppliers of methanol globally, Mitsubishi Gas Chemical prioritizes the acceleration to lower carbon intensity of our methanol supply and aims to contribute to a sustainable world. I’m very excited to work with Transition Industries towards this goal and to bring value to society.”
Pacifico Mexinol is expected to break ground in early 2025 and begin commercial operations in 2028.
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.
About Transition Industries
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, email inquiries@transitionind.com.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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