JFE Steel, Mitsubishi Gas Chemical, and Mitsubishi Chemical have signed a Memorandum of Understanding (MOU) for a demonstration project at the Mizushima Complex. The project aims to produce methanol from by-product gases emitted during steel manufacturing and use the methanol to produce propylene, a key raw material for plastics.

The project is set to begin in FY2026. JFE Steel will supply by-product gases to Mitsubishi Gas Chemical, which will demonstrate methanol production at a new plant. Mitsubishi Chemical will evaluate the methanol's compatibility with their propylene production technology at existing facilities and consider applications for other chemical products.

Reducing greenhouse gas (GHG) emissions in the industrial sector is crucial for addressing climate change. In the steel industry, efforts include developing advanced technologies and exploring CCUS (Carbon Capture, Utilization, and Storage). Methanol, synthesized from captured CO_², is gaining attention as a next-generation energy source and is expected to play a significant role in reducing GHG emissions. The Methanol to Olefin (MTO) process, which produces ethylene and propylene from methanol, is a promising technology for achieving carbon neutrality.

The Demonstration Project at the Mizushima Complex aims to promote collaboration among Hard-to-Abate industries by utilizing CO₂ from steel manufacturing processes to produce valuable chemicals. This initiative provides a model for collaborative CO₂ utilization and aims to develop a framework for carbon recycling through the collaboration of the steel and chemical industries. The Mizushima Complex, a high-density industrial area, offers diverse industries the opportunity to collaborate on CO₂ utilization. The three companies will strengthen their collaboration to build a sustainable society, advance the Demonstration Project, and explore broader opportunities for collaboration with other businesses to achieve carbon neutrality and tackle global environmental challenges.