October 31, 2024 09:18 AM Eastern Daylight Time
HOUSTON–(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. Our engagement with MGC is the result of Macquarie Commodities Trading’s efforts to facilitate offtake agreements with world-class customers under our Master Services and Marketing Agreement (MSMA). Through our collaboration with our key stake holders, Transition Industries is at the forefront of advancing the global adoption of low carbon intensity chemical feedstocks.”
Masahiko Naito, Division Director, C1 Chemicals Division for Mitsubishi Gas Chemical 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.”
Transition Industries previously announced it entered into a 15-year MSMA with Macquarie Commodities Trading, an affiliate of Macquarie Group’s Commodities and Global Markets business (“Macquarie” / “CGM”). Under the terms of the MSMA, Macquarie is responsible for marketing all the production from Pacifico Mexinol to customers on a global basis, the provisioning of financial hedging services as required by the Project, and supporting the Project in commodity planning and contracting for all required feedstock.
Pacifico Mexinol is expected to break ground in early 2025 and begin commercial operations in 2028.
About Mitsubishi Gas Chemical 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 help address climate change and promote environmental and social sustainability. For additional information about Pacifico Mexinol or Transition Industries, email [email protected].
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.
About Macquarie Group
Founded in 1969, Macquarie Group employs over 20,600 people in 34 markets. Commodities and Global Markets (CGM), an operating group of Macquarie, has more than 40 years of partnering with our clients to provide capital and financing, risk management, market access, and physical execution and logistics solutions across commodities, financial markets and asset finance sectors. For further information, visit our website.
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