Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical partner to decarbonize ethylene production, consolidate facilities, and advance bio-based chemical manufacturing.
Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical have reached a basic agreement to jointly advance the decarbonization of ethylene production while also optimizing manufacturing capacity at their ethylene facilities located in western Japan. The three companies have been collaboratively examining strategies to reduce greenhouse gas emissions, improve operational efficiency, and strengthen the long-term competitiveness of Japan’s petrochemical sector in response to intensifying global climate goals and structural industry challenges.
As part of these efforts, the companies jointly applied for the “Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries” (HtA Support Program), administered by Japan’s Ministry of Economy, Trade and Industry (METI). This program is designed to support industries where emissions reductions are particularly difficult, such as petrochemicals, by encouraging technological innovation and the transition to alternative, lower-carbon feedstocks. Their proposal was selected, enabling the companies to move forward with initiatives including the use of biomass-derived raw materials as substitutes for conventional petroleum-based resources.
Under the newly signed basic agreement, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical plan to establish a new joint operating company to manage their two ethylene production facilities in western Japan. As part of a broader production optimization strategy, the companies intend to discontinue operations at the Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC) ethylene facility at the Mizushima Plant in Kurashiki, Okayama Prefecture. Production will instead be consolidated at the Osaka Petrochemical Industries, Ltd. (OPC) facility located in Takaishi, Osaka, with this consolidation targeted for completion by fiscal 2030.
In parallel with production consolidation, the companies will leverage the HtA Support Program to introduce next-generation low-carbon technology. An initial facility capable of producing ethylene, propylene, and other basic chemicals with reduced carbon intensity will be installed at Asahi Kasei’s Mizushima Works. This facility will apply Asahi Kasei’s Revolefin™ technology, which is currently under development and enables the production of olefins from bioethanol rather than fossil-based feedstocks. After validating equipment performance, operational stability, and process reliability, the three companies aim to begin joint commercial production of decarbonized basic chemicals by fiscal 2034.
To facilitate the planned shutdown of the AMEC ethylene facility at Mizushima, equipment modifications will be carried out by Asahi Kasei and Mitsubishi Chemical. Additional modifications will also be implemented at the OPC Senboku Factory, which will become the primary site for consolidated ethylene production. Once production at the Mizushima AMEC facility is halted, the ethylene plant and associated equipment will be dismantled without delay. Following dismantling, the three companies will jointly explore ways to repurpose the vacated site in a manner that supports carbon neutrality and future sustainable industrial use.
Ethylene plays a foundational role in the petrochemical industry, serving as a key starting material for a wide range of basic chemicals. These chemicals are further processed into materials used in everyday consumer goods, automotive components, electronic devices, and semiconductor manufacturing. However, the scale and energy intensity of ethylene production make it particularly challenging for individual companies to fully decarbonize operations on their own. This reality has increased the importance of collaboration among neighboring petrochemical producers through shared infrastructure, joint technology deployment, and coordinated emissions reduction initiatives.
Through this basic agreement, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical aim to strengthen their partnership and jointly drive carbon neutrality and production efficiency in western Japan’s ethylene sector. The alliance will be guided by principles of transparent management and fair, rational sharing of costs and benefits. By utilizing the HtA Support Program, the companies seek to accelerate the shift toward competitive, decarbonized basic chemicals, expand carbon-neutral markets across their respective businesses, and establish sustainable, future-ready business models aligned with Japan’s long-term climate objectives.
