Monday 11 December 2023

Plans for net zero world-scale methanol project in Mexico

Plans for net zero world-scale methanol project in Mexico

An agreement to development a net zero world-scale methanol project in Mexico has been announced.

The International Finance Corporation (IFC) - a member of the World Bank Group - and Transition Industries signed the agreement at the COP28 summit to jointly develop the Pacifico Mexinol project.

The 6,145 metric tons (MT) per day methanol production facility in Sinaloa is expected to become the largest single ultra-low carbon chemicals facility in the world.

Around 300,000MT of green methanol are expected to be produced from captured carbon and green hydrogen and 1.8 million MT of blue methanol per year from natural gas with carbon capture.

The project is expected to generate more than 3,000 jobs during construction and up to 450 direct and indirect jobs during operations.

A final investment decision is due to be reached in 2024, with commercial operations expected to start in late 2027.

Alfonso García Mora, IFC's Vice President for Europe, Latin America and the Caribbean, said: “At IFC, we attract partners to invest alongside us as we provide capital to companies in developing countries, a process we call 'mobilisation'. By mobilising capital, we amplify the positive impact of our financing on the lives of people in developing countries.

“With this agreement, we contribute to the development of a project with the potential to reduce natural gas flaring, treat recycled wastewater, diversify Mexico's chemicals capacity, increase exports and generate employment. At least 40% of the global production of methanol comes from coal. Decarbonising methanol production is an imperative for IFC.”

Written by

Sumit Bose

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