A briefing on the Pacífico Mexinol low-carbon methanol production project in northwestern Mexico was held at the Embassy of Mexico in Japan, outlining the total investment, production capacity, and progress on major contracts. The project aims to begin operations in 2030, and key details including job creation and the feedstock mix were also announced.
Transition Industries, a US-affiliated company, held a briefing at the Embassy of Mexico in Japan on 29 October and disclosed an overview of the Pacífico Mexinol low-carbon methanol production project planned around Topolobampo in the city of Ahome, Sinaloa, Mexico. Total investment is expected to exceed $5 billion, and operations are targeted to begin in 2030. Approximately 6,000 jobs are expected during construction, and approximately 450 direct and indirect jobs during operations.
Annual production capacity is expected to be approximately 2.12 million tonnes, comprising 1.77 million tonnes of low-carbon methanol derived from natural gas, 175,000 tonnes of RFNBO derived from renewable fuels, and 175,000 tonnes of RCF, recycled carbon fuel. RFNBO is expected to be produced using technology that combines hydrogen generated from renewable energy with captured CO2, which was explained as helping to reduce CO2 emissions.
Contracts supporting commercialization include the provision of a technology licence by NextChem, a subsidiary of Maire, with a policy of producing natural-gas-based methanol and green methanol in an integrated operation. The EPC contract for the methanol facilities will be handled by a consortium of Samsung E&A and Techint Engineering and Construction. It was also disclosed that Siemens Energy and Techint had entered into a contract for approximately 210 MW of water electrolysis equipment for the green hydrogen facilities.
On the sales side, an agreement has been reached with Mitsubishi Gas Chemical to supply approximately 1 million tonnes annually under a 10-year take-or-pay contract. For feedstock procurement, a long-term contract has been signed with CFE Energía for US natural gas at a volume of approximately 4.58 million cubic meters per day. The timing of the FID has not been determined, and finalizing financing and equity investment will be key issues going forward.
The project is expected to have an advantage in transportation to Asian markets, including Japan, because of its location on the Pacific coast. Going forward, it could become a low-carbon fuel supply hub for Japanese shipping companies operating Pacific routes. Financial developments, including the involvement of the International Finance Corporation (IFC) in fundraising, will also be watched closely.