Transition Industries and Mitsubishi Gas Chemical Sign Agreement for the Purchase and Sale of Ultra-Low Carbon Methanol

Transition Industries LLC, a developer of world-scale, net-zero carbon emissions methanol and hydrogen projects, signed a long-term methanol sales and purchase agreement with Mitsubishi Gas Chemical Company, Inc. (MGC) for the offtake of ultra-low carbon methanol.

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Under the Agreement, which will become effective upon the Project’s Final Investment Decision (FID), Transition Industries will supply MGC approximately 1 million MT per annum of ultra-low carbon methanol from its Pacifico Mexinol project, a 6,130 MT per day methanol production facility near Topolobampo, Sinaloa, Mexico, expected to be in operation in 2029. Transition Industries is jointly developing Pacifico Mexinol with the International Finance Corporation (IFC), a member of the World Bank Group.

Rommel Gallo, CEO of Transition Industries commented: “We are proud to announce the signing of a long-term ultra-low carbon methanol purchase and sale agreement with MGC, a recognized global leader in chemical manufacturing and marketing. We are honored to collaborate with MGC in our shared mission to address climate change and supply ultra-low carbon methanol to the Pacific Basin market. Through strategic partnerships with key stakeholders and innovative companies like MGC, Transition Industries is driving the global adoption of low-carbon chemical feedstocks and leading the advancement of sustainable industry practices.”

This Agreement marks MGCs first large-scale and long-term procurement contract for ultra-low carbon methanol and makes MGC a key offtake partner for the Pacifico Mexinol project.

Masahiko Naito, Division Director, C1 Chemicals Division for MGC, said: “We are delighted to enter into this long-term agreement with Pacifico Mexinol, a company invested in by Transition Industries that shares our commitment to advancing carbon reduction and sustainability. The Pacifico Mexinol Project represents an important milestone in expanding the global supply of ultra-low carbon methanol. Through this collaboration, MGC aims to further promote methanol-based decarbonization and strengthen our ‘Carbopath™’ initiative, which drives carbon circularity across multiple industries. By ensuring a stable supply of ultra-low carbon methanol, we will contribute to reducing greenhouse gas emissions and supporting the transition toward a more sustainable society in Japan and in the broader Asia-Pacific region.”

A signing ceremony was held in Tokyo, Japan to commemorate the Agreement and included officials from the United States Embassy to Japan, the Mexican Embassy to Japan, the Japanese Ministry of Economy, Trade and Industry, the Japanese Ministry of Foreign Affairs, and the State of Sinaloa. Other project stakeholders, including IFC, Techint, Samsung E&A, MAIRE Group, SIAD Group, Macquarie Capital, and Siemens Energy, were also in attendance.

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.

About Transition Industries LLC

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 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.

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