MGC signs ultra-low carbon methanol supply deal

Mitsubishi Gas Chemical Company has signed a sales and purchase agreement with Transition Industries LLC for the supply of ultra-low carbon methanol. The agreement was signed on November 6, 2025.

Officials from the embassies of the United States and Mexico attended the signing ceremony. Transition Industries develops large-scale methanol and green hydrogen projects aimed at achieving carbon neutrality. Together with the International Finance Corporation (IFC) of the World Bank Group, TI is developing the Pacifico Mexinol Project in Mexico. The facility will produce 2.15 million tons of green and blue methanol each year, making it one of the largest ultra-low carbon methanol projects in the world.

The agreement will take effect after the project’s Final Investment Decision (FID). Once operations begin in 2029, MGC will purchase about 1 million tons of ultra-low carbon methanol per year, becoming a key offtaker. This methanol will replace high-emission alternatives in fuel and chemical applications, helping MGC meet growing demand for cleaner energy in Japan and across Asia.

MGC is also advancing Carbopath, a circular platform that produces methanol from CO₂, waste plastics, and biomass. The company then reuses it as fuel or chemical feedstock. This deal marks MGC’s first large-scale, long-term procurement of ultra-low carbon methanol. It will strengthen the company’s role in providing stable, sustainable materials while supporting Asia’s green market growth.

Rommel Gallo, CEO of Transition Industries, said:

“We are proud to partner with MGC, a global leader in chemical manufacturing. Together, we are driving the global shift to low-carbon chemical feedstocks and sustainable industrial practices.”

Masahiko Naito, Division Director, C1 Chemicals Division at MGC, said:

“This agreement is an important step in expanding global access to ultra-low carbon methanol. Through our partnership with Pacifico Mexinol, we will advance our Carbopath initiative and help reduce greenhouse gas emissions across Asia-Pacific.”

MGC remains committed to its mission, “Creating value to share with society.” The company will continue promoting circular, low-carbon methanol solutions to support a sustainable future.

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