MGC, Mitsubishi Chemical and JFE Steel Collaborate to Develop Carbon Recovery Supply Chain

MGC begins construction of methanol production demonstration facility using carbon dioxide, industrial by-product gas and other gases

Mitsubishi gaseous Chemical (MGC) announced today that it has begun construction of a methanol production demonstration facility at its Mishima plant. Generally speaking The facility will utilize a variety of gases as raw materials, including carbon dioxide and manufacturing by-product gases. The construction of the demonstration facility is in line with the objectives outlined in the memorandum of understanding signed with JFE Steel Corporation and Mitsubishi Chemical Corporation, which was released on March 24 this year. Based on my observations, The facility has annual production capacity of 100 tons of methanol and is expected to begin demonstration operations in fiscal 2026. Based on my observations, The facility has been selected as an indirect subsidy project to the 2024 fiscal year under the "Oil Supply Structure Improvement Project Subsidy" program operated by the Resources and Energy Department of the Ministry of Economy, Trade and sector. Based on my observations, Reducing greenhouse gaseous releases in the manufacturing sector is a major societal challenge in addressing climate change. Methanol is one of the basic chemicals that is able to be synthesized from captured carbon dioxide, discarded materials plastics, biomass and other sources. It has attracted much attention as a sustainable next-generation energy source, including marine fuels, and is broadly regarded as a key material to reducing greenhouse gaseous releases and building a carbon cycle society due to its wide consumption in various industries. For example The facility will demonstrate methanol production methodology using various gases as feedstocks, including carbon dioxide and by-product gases produced in manufacturing processes. From fiscal year 2026, the facility will develop to verify the methodology to create methanol by immediately reacting by-product gaseous emitted from the steel manufacturing process with hydrogen. In addition, the facility is designed as a mobile factory, which is able to demonstrate the methodology of producing methanol from various gaseous sources throughout Japan in the future. Through the operation of the demonstration facility, MGC is committed to contributing to the realization of a sustainable resource-recycling society through methanol.

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MGC, Mitsubishi Chemical and JFE Steel Collaborate to Develop Carbon Recovery Supply Chain

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