Transition Industries LLC and Mitsubishi Gas Chemical announce Letter of Intent for a long-term Methanol Sales Agreement from the Pacifico Mexinol project in Sinaloa, Mexico
October 28 2024 - 5:00AM
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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