Transition Industries and Mitsubishi Gas Chemical Sign Long-Term Agreement for Supply of Ultra-Low Carbon Methanol
Transition Industries, a developer of world-scale, net-zero carbon emissions methanol and hydrogen projects, has announced the signing of a long-term sales and purchase agreement with Mitsubishi Gas Chemical Company, Inc. (MGC) for the offtake of ultra-low carbon methanol. This milestone agreement marks a significant step forward in the global transition toward sustainable chemical feedstocks and reinforces both companies’ commitment to decarbonization and innovation in the chemical industry.
Under the terms of the agreement, which will become effective upon the Final Investment Decision (FID) of the Pacifico Mexinol Project, Transition Industries will supply MGC with approximately 1 million metric tons per annum (MTPA) of ultra-low carbon methanol. The methanol will be produced at Transition’s Pacifico Mexinol facility, a 6,130 metric ton-per-day methanol production complex located near Topolobampo, Sinaloa, Mexico. The project is expected to begin operations in 2029.
A Landmark Project in Sustainable Methanol Production
Pacifico Mexinol is being developed as one of the most advanced and sustainable methanol facilities in the world. The project is a joint development between Transition Industries and the International Finance Corporation (IFC), a member of the World Bank Group, which underscores its global importance and credibility. Once operational, Pacifico Mexinol is expected to become the largest single ultra-low carbon chemicals facility in the world, producing approximately 350,000 metric tons of green methanol—derived from renewable sources—and 1.8 million metric tons of blue methanol, produced from natural gas integrated with carbon capture technology.
By combining renewable hydrogen and captured carbon dioxide with low-emission processes, Pacifico Mexinol will significantly reduce lifecycle greenhouse gas emissions compared to conventional methanol production. The project aligns with both Mexico’s and the international community’s objectives to accelerate the transition toward low-carbon industrial practices and cleaner energy systems.
Strategic Partnership for a Decarbonized Future
The long-term offtake agreement between Transition Industries and MGC represents a major commercial step in advancing the global supply chain for ultra-low carbon methanol. The partnership brings together Transition’s technical and project development expertise with MGC’s long-standing leadership in the global chemical industry.
Rommel Gallo, Chief Executive Officer of Transition Industries, expressed pride in the new collaboration and highlighted its strategic importance:
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, long-term procurement contract for ultra-low carbon methanol, establishing the company as a key offtake partner for the Pacifico Mexinol project. The arrangement supports MGC’s broader sustainability strategy, which centers on promoting methanol-based decarbonization and expanding the use of circular carbon technologies.
Masahiko Naito, Division Director of the C1 Chemicals Division at MGC, emphasized the strategic value of this collaboration:
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.
Celebrating Global Collaboration
To commemorate the signing, a ceremony was held in Tokyo, Japan, attended by dignitaries, government officials, and industry leaders from around the world. Participants included representatives from the United States Embassy to Japan, the Mexican Embassy to Japan, Japan’s Ministry of Economy, Trade and Industry (METI), and the Ministry of Foreign Affairs (MOFA), as well as delegates from the State of Sinaloa.
The event also included participation from key stakeholders and partners in the Pacifico Mexinol project, including IFC, Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy. The strong international representation underscored the project’s strategic importance as a model for global cooperation in sustainable industrial development.
Advancing the Methanol Economy
Methanol is an essential building block for hundreds of everyday products, from plastics and paints to fuels and adhesives. Traditionally produced from fossil fuels, methanol has faced challenges in reducing its carbon footprint. However, with the emergence of green and blue methanol technologies, the industry is now positioned to make substantial contributions to global decarbonization goals.
Ultra-low carbon methanol, such as that to be produced at Pacifico Mexinol, offers a direct pathway to reducing emissions in hard-to-abate sectors including shipping, chemicals, and materials manufacturing. It also serves as a key enabler of carbon circularity—capturing CO₂ emissions from industrial sources and converting them into valuable chemical products. MGC’s Carbopath™ initiative aims to build this circularity into its global operations, using methanol as a core feedstock for low-carbon and carbon-neutral manufacturing.
A Shared Vision for Global Sustainability
The collaboration between Transition Industries and MGC reflects a shared vision of innovation, sustainability, and responsible growth. By investing in advanced low-carbon projects and building strong international partnerships, both companies are contributing to a cleaner, more resilient global economy.
As Transition Industries advances toward the Final Investment Decision for Pacifico Mexinol, the long-term commitment from MGC serves as a cornerstone of commercial support and validation of the project’s economic and environmental potential.
This partnership demonstrates that global cooperation can accelerate real progress toward net-zero industrial systems,” added Gallo. “Pacifico Mexinol will not only produce ultra-low carbon methanol at scale—it will also set a new benchmark for what sustainable industrial projects can achieve.
With operations expected to begin in 2029, Pacifico Mexinol will play a critical role in supplying the Asia-Pacific region with sustainable methanol, supporting Japan’s energy transition goals, and advancing the broader global effort to achieve carbon neutrality.
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