Transition Industries Supplies Mitsubishi Gas Chemical with Ultra-Low Carbon Methanol from Pacifico Mexinol

Pacifico Mexinol, said to be the largest single ultra-low-carbon chemicals facility, will supply Mitsubishi Gas Chemical Co. (MGC) with approximately 1 mmtpa of ultra-low-carbon methanol, according to a letter of intent signed between Transition Industries, joint developer of Pacifico Mexinol, and MGC. The production facility, jointly developed with the World Bank Group’s International Finance Corp., generates 6,145 metric tons (MT) of methanol per day to be transported via pipeline to the Port of Topolobampo.

“We are pleased to announce our letter of intent for a long-term methanol sales agreement with MGC,” said Rommel Gallo, CEO of Transition Industries. “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.”

When the production facility, located near Topolobampo, Sinaloa, Mexico, opens in a few years, it’s expected to produce approximately 350,000 MT of green methanol and 1.8 million MT of blue methanol per year from natural gas with carbon capture.

“As one of the producers and suppliers of methanol globally, MGC prioritizes the acceleration to lower carbon intensity of our methanol supply and aims to contribute to a sustainable world,” said Masahiko Naito, Division Director, C1 Chemicals Division for MGC. “I’m very excited to work with Transition Industries toward this goal and to bring value to society.”

It will break ground in early 2025 with commercial operations scheduled for 2028.

Mitsubishi’s Low-Carbon News

In mid-October, Mitsubishi Heavy Industries (MHI) and Osaka Gas led the latest $50 million funding round for Koloma—a geologic hydrogen startup founded by Pete Johnson and headquartered in Denver, CO. The investment was executed through MHI America which joins a network of investors, including Bill Gates’ Breakthrough Energy Ventures, Amazon’s Climate Pledge Fund, United Airline’s Sustainable Flight Fund, and Energy Impact Partners. The company’s total investments amount to more than $350 million since its 2021 launch.

Koloma utilizes its technology, proprietary data, and human capital advantages to identify and commercialize geologic hydrogen on a global scale. Most natural hydrogen originates via serpentinization: underground water contacts iron-rich rocks and creates iron oxides, leaving behind hydrogen. Gaseous hydrogen then rises through permeable rock and soil, forming deposits contained within subterranean domes. Koloma Labs received $900,000 from the U.S. Department of Energy for its enhanced hydrogen production research. The company lab is developing geochemical, geo-mechanical, and fluid transport models to understand hydrogen formation in novel rock systems, paired with an investigation of microbiology in hydrogen reservoirs.

In September, MHI deployed its carbon-capture technology—the KM CDR Process—to remove approximately 25,000 tons of CO₂ per year at a fully operational post-combustion carbon capture plant. The facility, located in Ravenna, Italy, is part of the Ravenna Carbon Capture and Storage project launched by Eni and Snam. KM CDR was installed at Eni’s Casalborsetti natural gas treatment plant by NEXTCHEM, the project’s technology integrator, while KT Integrated E&C Solutions completed engineering, procurement, and construction works at the site.

At the plant, MHI’s carbon-capture process treats low-CO₂ flue gas from a natural gas turbine driving a turbocompressor. With CO₂ concentration levels less than 3% and low atmospheric pressure in the exhaust, the technology is reducing CO₂ emissions by 90% with peaks of 96%.