Transition Industries has signed a Letter of Intent (LOI) with Mitsubishi Gas Chemical Company (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.
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.
Pacifico Mexinol, which will be operational in 2028, will 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.
Methanol is generally used for car parts and construction materials but can also be used as a clean energy source for motor vehicles, ships, fuel cells, boilers and kitchen stoves.
Rommel Gallo, CEO of Transition Industries, said the Letter of Intent is part of joint efforts to address climate change and supply the Pacific Basin with ultra-low carbon methanol.
Masahiko Naito, division director, C1 Chemicals Division for Mitsubishi Gas Company said the company will prioritise the move to lower the carbon intensity of its methanol supply contributing to a more sustainable world.
Pacifico Mexinol is expected to break ground in early 2025 and begin commercial operations in 2028.