Transition Industries partners with Macquarie for Pacifico Mexinol Project
In a landmark development announced at COP 28, Transition Industries LLC has entered into a Master Services and Marketing Agreement (MSMA) with Macquarie Commodities Trading, an affiliate of Macquarie Group’s Commodities and Global Markets business. This agreement marks a significant step for the Pacifico Mexinol project, set to be located near Topolobampo, Sinaloa, Mexico.
Pacifico Mexinol Project : A Pioneering Facility in Green Methanol Production
Once operational, Pacifico Mexinol is expected to set a global precedent as the largest single ultra-low carbon chemicals facility in the world. The facility plans to produce about 300,000 MT of green methanol annually from captured carbon and green hydrogen, and an impressive 1.8 million MT of blue methanol per year from natural gas with carbon capture. This ambitious project signifies a major leap forward in sustainable chemical production.
Pacifico Mexinol Project Set to Become World’s Largest Ultra-Low Carbon Chemical Facility
Macquarie’s Role in the MSMA
Under the MSMA, Macquarie will take on the responsibility of marketing all production from Pacifico Mexinol on a global scale. This includes managing methanol offtake agreements, financial hedging services required by the Project, and assisting with commodity planning and contracting for necessary feedstock. The agreement spans a 15-year term from the Project’s Commercial Operations Date.
Leadership Comments on the Collaboration
Rommel Gallo, CEO of Transition Industries, expressed enthusiasm about the partnership with Macquarie, highlighting the access to a global customer base and Macquarie’s extensive capabilities in financial services, logistics, and risk management. Aarnoud van Weelderen of Macquarie’s CGM business and Ramiro Castro, Managing Director for Macquarie in Mexico, echoed these sentiments, emphasizing the project’s contribution to global decarbonization and value generation in Latin America.
International Finance Corporation’s Involvement
The International Finance Corporation (IFC), part of the World Bank Group, is a co-developer of the Pacifico Mexinol project, collaborating with Transition Industries LLC. IFC, along with Kreditanstalt fur Wiederaufbau IPEX (KfW IPEX), is involved in the project’s financing, which was formally announced at a signing ceremony in Dubai, UAE, alongside the COP28 conference.
Project Timeline and Expectations
The Pacifico Mexinol project is on track to reach its Final Investment Decision in 2024, with the Commercial Operations Date anticipated in late 2027. This project represents a significant advancement in the global methanol market and sustainable chemical production, positioning Mexico at the forefront of the green energy transition.