Transition Industries and MGC sign a long-term agreement for ultra-low carbon methanol supply from Mexico’s Pacifico Mexinol project, advancing decarbonization.
Transition Industries LLC, a leading developer of net-zero carbon emissions methanol and hydrogen projects, has entered into a long-term sales and purchase agreement with Mitsubishi Gas Chemical Company, Inc. (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 this arrangement, Transition Industries will provide MGC with approximately one million metric tons of ultra-low carbon methanol annually from its upcoming Pacifico Mexinol facility, located near Topolobampo in Sinaloa, Mexico. The large-scale production plant, which will have a capacity of 6,130 metric tons per day, is expected to commence operations by 2029.
Transition Industries is co-developing the Pacifico Mexinol Project in collaboration with the International Finance Corporation (IFC), a member of the World Bank Group. The project is positioned as a cornerstone of sustainable industrial development in Latin America, emphasizing the production of methanol with significantly reduced carbon intensity.
Rommel Gallo, Chief Executive Officer of Transition Industries, expressed pride in establishing a strategic partnership with MGC, calling it a significant step toward advancing climate solutions. “We are honored to collaborate with MGC, a global leader in chemical manufacturing and marketing, to supply ultra-low carbon methanol to the Pacific Basin market,” Gallo stated. He emphasized that partnerships like this demonstrate Transition Industries’ commitment to accelerating the adoption of low-carbon chemical feedstocks and promoting sustainable industrial practices across the globe.
For MGC, this agreement represents its first major long-term procurement of ultra-low carbon methanol, solidifying its role as a key offtake partner in the Pacifico Mexinol initiative. Masahiko Naito, Division Director of MGC’s C1 Chemicals Division, highlighted the strategic importance of this partnership, noting that it aligns with MGC’s ongoing “Carbopath™” initiative—a program designed to enhance carbon circularity and drive decarbonization across multiple industries.
Naito added that the agreement will ensure a stable supply of low-emission methanol, enabling MGC to support global and regional sustainability goals. “Through this collaboration, we aim to reduce greenhouse gas emissions and advance the transition toward a sustainable, low-carbon society in Japan and across the Asia-Pacific region,” he said.
A formal signing ceremony took place in Tokyo, Japan, attended by representatives from the U.S. and Mexican embassies, the Japanese Ministry of Economy, Trade and Industry, the Ministry of Foreign Affairs, and the State of Sinaloa. Several key project stakeholders, including IFC, Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy, were also present.
Once operational, Pacifico Mexinol will be the world’s largest ultra-low carbon chemical facility, expected to produce around 350,000 metric tons of green methanol and 1.8 million metric tons of blue methanol annually using natural gas with integrated carbon capture technology.
