February 17, 2026 [Fuel Cells Works]- Construction is set to begin on a $3.3bn green and blue hydrogen-based methanol project in Mexico after developer Transition Industries secured long-term natural gas supplies for its Pacifico Mexinol plant near Topolobampo, Sinaloa. The company signed a contract with state-owned CFENergía covering around 160 million cubic feet per day of US gas, which will feed methane reforming paired with carbon capture for the blue methanol stream.

Transition Industries said the agreement represented the “final outstanding commercial milestone” for the project, clearing the way for work to start. Once built, the facility is designed to produce up to 1.8 million tonnes of blue methanol and 350,000 tonnes of green methanol per year, with operations expected to begin between late 2029 and early 2030. “This contract reinforces Mexinol’s position as a key strategic investment, strengthening the long-term industrial competitiveness of Mexico and the state of Sinaloa,” said Transition Industries CEO Rommel Gallo.

The green portion of the output will be made using hydrogen from a 210MW electrolyser that is being engineered by Siemens Energy and Techint Engineering & Construction. Because of its location on Mexico’s northwest coast, Transition Industries said the plant would be “well-positioned” to serve emerging demand for clean methanol across the Pacific, where shipping and chemical markets are both looking for lower-carbon fuels.

In parallel, Japan’s Mitsubishi Gas Chemical has committed to buying around 50% of the project’s output, anchoring demand for what is being marketed as ultra-low carbon product. Transition Industries and Mitsubishi Gas Chemical have signed a long-term purchase and sale agreement that will take effect upon the project’s final investment decision, under which the developer will supply approximately 1 million tonnes per year from the 6,130-tonnes-per-day facility expected to be operating in 2029. “By ensuring a stable supply of ultra-low carbon methanol, we will contribute to reducing greenhouse gas emissions and supporting the transition toward a more sustainable society in Japan and in the broader Asia-Pacific region.”

Gallo framed the offtake deal as a cornerstone for scaling low-carbon chemicals. “We are proud to announce the signing of a long-term ultra-low carbon methanol purchase and sale agreement with MGC, a recognized global leader in chemical manufacturing and marketing. We are honored to collaborate with MGC in our shared mission to address climate change and supply ultra-low carbon methanol to the Pacific Basin market. Through strategic partnerships with key stakeholders and innovative companies like MGC, Transition Industries is driving the global adoption of low-carbon chemical feedstocks and leading the advancement of sustainable industry practices.”

For Mitsubishi Gas Chemical, the contract marks its first large-scale, long-term procurement of ultra-low carbon methanol. Masahiko Naito, Division Director, C1 Chemicals Division for MGC, said: “We are delighted to enter into this long-term agreement with Pacifico Mexinol, a company invested in by Transition Industries that shares our commitment to advancing carbon reduction and sustainability.

The Pacifico Mexinol Project represents an important milestone in expanding the global supply of ultra-low carbon methanol. Through this collaboration, MGC aims to further promote methanol-based decarbonization and strengthen our ‘Carbopath™’ initiative, which drives carbon circularity across multiple industries. By ensuring a stable supply of ultra-low carbon methanol, we will contribute to reducing greenhouse gas emissions and supporting the transition toward a more sustainable society in Japan and in the broader Asia-Pacific region.” A signing ceremony in Tokyo drew officials from both countries and a roster of project partners.

When it starts up, Pacifico Mexinol is expected to be the largest single ultra-low carbon chemicals facility in the world, producing about 350,000 tonnes of green methanol and 1.8 million tonnes of blue methanol each year from gas with carbon capture.