IFC, Transition Industries Invest In ESG-Driven Methanol Project

During COP28, the International Finance Corporation (IFC), a member of the World Bank Group, forged an agreement with Transition Industries LLC to develop the Pacífico Mexinol project. Located in Paredones, Sinaloa, the project aims to become the world's largest ultra-low carbon chemicals facility, producing green methanol on an unprecedented scale.

In a press release, the IFC says that under the agreement, it will share a substantial portion of the project's development costs, provide invaluable expertise to ensure compliance with environmental, social, and governance (ESG) standards through the IFT Performance ESG, and leverage its financial expertise to support its financing.

Governor of Sinaloa Rubén Rocha shares that the project is estimated to involve an investment of US$2.2 billion, creating over 3,000 jobs during construction and up to 450 direct and indirect jobs during operations.

Rommel Gallo, CEO, Transition Industries, says that this collaboration would set a "new gold standard" in ESG, emphasizing its commitment to addressing climate change, sustainable resource management, and community engagement.

Alfonso García Mora, Vice President for Europe, Latin America, and the Caribbean, IFC, highlights that the project could reduce natural gas flaring, treat recycled wastewater, diversify Mexico's chemical capacity, boost exports, and generate employment. García highlights the importance of decarbonizing methanol production since at least 40% of methanol produced worldwide originates from coal.

The project's sustainability initiatives include the use of municipal wastewater to avoid competing with local freshwater needs. The facility will not extract or discharge water into the nearby bay, preserving the critical local ecosystem. Furthermore, the plant's strategic location near Topolobampo ensures minimal environmental impact, requiring no dredging or additional infrastructure for methanol exports.

US Ambassador to Mexico, Ken Salazar, outlined the project's vision to be the world's largest ultra-low carbon chemical facility. Construction is slated to start in 2024, with plans to produce green methanol from captured carbon and green hydrogen and blue methanol from natural gas with carbon capture.

Transition Industries LLC's website reads that its facility will be located near Topolobampo, and produce over 5,000 metric tons of methanol per day, positioning it as one of the most environmentally friendly facilities globally in terms of emissions, water resource efficiency, and overall environmental footprint. Mexinol's production is slated for export to markets in the Pacific basin.

The IFC also shares that Pacífico Mexinol will become the largest single ultra-low carbon chemicals facility globally, producing about 300,000 metric tons of green methanol from captured carbon and green hydrogen, along with 1.8 million metric tons of blue methanol per year from natural gas with carbon capture. 

The project is expected to reach a final investment decision in 2024, with commercial operations beginning in late 2027.