JFE Steel Corporation, Mitsubishi Gas Chemical, and Mitsubishi Chemical have signed an MoU for a demonstration project at the Mizushima Complex in Kurashiki, Japan. The initiative will produce methanol from by-product gases generated during steel manufacturing and use it to create propylene, a key plastic raw material.
Slated to begin in FY2026, JFE Steel will supply by-product gases, while Mitsubishi Gas Chemical will produce methanol at a new facility. Mitsubishi Chemical will assess the methanol’s compatibility with its propylene production technology and explore its applications for other chemical products.
The project aligns with efforts to reduce greenhouse gas (GHG) emissions in industrial sectors. Methanol, which can be synthesized from captured CO2, is gaining traction as a next-generation energy source and a pathway to carbon recycling. The Methanol-to-Olefin (MTO) process, which converts methanol into ethylene and propylene, offers an alternative to fossil-based raw materials. By integrating CO2 from steel production into valuable chemicals, the project serves as a model for cross-industry carbon utilization.
The Mizushima Complex, a hub for heavy industries, provides an ideal setting for such collaboration. The three companies also plan to explore wider partnerships within the complex to advance carbon neutrality and contribute to global environmental goals.