DUBAI, United Arab Emirates - Friday, 08. December 2023 AETOSWire
(BUSINESS WIRE)--Transition Industries LLC announced at COP 28 that it has signed a Joint Project Development Agreement (JPDA) with the International Finance Corporation (IFC), a member of the World Bank Group, to jointly develop its Pacifico Mexinol project, a 6,145 MT per day methanol production facility near Topolobampo, Sinaloa, Mexico.
When it initiates operations, Pacifico Mexinol is expected to be the largest single ultra-low carbon chemicals facility in the world - producing approximately 300,000 MT of green methanol from captured carbon and green hydrogen, and 1.8 million MT of blue methanol annually from natural gas with carbon capture.
Under the terms of the JPDA, the IFC will share a portion of the project development costs, provide substantial expertise to ensure compliance with the IFC Performance Environmental & Social Standards, and leverage its expertise to support the project financing. In return, the IFC has the right to invest in a pro rata percentage of the project’s common equity and lead the financing of at least 50% of the project’s debt.
Rommel Gallo, the CEO of Transition Industries, commented: “We are pleased to announce our JPDA with the IFC and proud to partner on this groundbreaking project. Together, we expect to set a new gold standard in ESG for the development of large industrial and chemicals projects that addresses climate change, sustainably manages natural resources such as water, and works in partnership with local communities to achieve shared value.”
Gallo continued: “We would like to extend a very special thank you to the Government of Mexico and its various secretariats. It is an honor to align with the Mexican government’s goals to promote development that is fair and equitable.”
Mr. Gallo thanked Sinaloa Governor Ruben Rocha Moya and his Secretary of Economy Javier Gaxiola Coppel, for their continued support and strong commitment to the success of Pacifico Mexico - expected to break ground in 2024. "We look forward to continuing to work with them in the coming years to promote Sinaloa as a hub for low-carbon investing.”
Gallo thanked various U.S. Government agencies for their continuing support and Ahome Municipal President Gerardo Vargas for his active leadership in promoting equitable investment in Northern Sinaloa.
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 "mobilization." By mobilizing 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. Decarbonizing methanol production is an imperative for IFC.”
Sinaloa State Governor Ruben Rocha Moya commented: “We are delighted to welcome Pacifico Mexinol to Sinaloa and are pleased to present our great state as a top destination for large investments that are socially and environmentally sustainable, generate well-paying jobs, and improve the social fabric of our communities.”
Pacifico Mexinol’s responsibility to sustainable resource management and its neighbors extends far beyond the ultra-low carbon production of methanol. The project has been engaging with local stakeholders for over four years, listening to local community members to understand their needs and concerns, resulting in innovative design solutions: the use of municipal wastewater to eliminate competition with local freshwater needs; no water removal from or discharge into the nearby bay – an important local ecosystem; and export of methanol through an existing port, requiring no dredging or additional infrastructure.
Pacifico Mexinol is expected to reach Final Investment Decision in 2024 and Commercial Operations in late 2027. The project is expected to generate on average 3,500 jobs during construction and up to 450 jobs during operations.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About Transition Industries
Transition Industries LLC, based in Houston, Texas, is a developer of world-scale net-zero carbon emissions methanol and hydrogen projects in North America to address climate change and promote environmental and social sustainability. For additional information about Pacifico Mexinol or Transition Industries, email inquiries@transitionind.com.
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