Source: MarketScreener
The Demonstration Project is scheduled to commence in FY2026. JFE Steel will provide the by-product gases from its steel production processes to Mitsubishi Gas Chemical, which will conduct methanol production demonstrations at a newly constructed demonstration plant. Mitsubishi Chemical will then assess the compatibility of this methanol with their propylene production technology (DTP®*) at their existing demonstration facilities and explore potential applications for various chemical products.
Addressing greenhouse gas (GHG) emissions in the industrial sector is a crucial societal challenge in the fight against climate change. Within the steel industry, efforts to reduce CO2 emissions include the development of advanced technologies, such as innovative blast furnaces and large-scale, high-efficiency electric arc furnaces, along with exploring CCUS (Carbon Capture, Utilization, and Storage). Methanol, a fundamental chemical, can be synthesized from captured CO2 and other sources. It has emerged as a promising next-generation energy source, including potential use as a fuel for ships, and is anticipated to significantly contribute to GHG reduction efforts and the establishment of a carbon-recycling society due to its versatile applications in the chemical industry. Currently, ethylene and propylene—critical raw materials for everyday plastics—are produced from fossil-based resources in Japan. As a result, the Methanol to Olefin (MTO) process, which derives these materials from methanol, has gained attention as a viable technology for achieving carbon neutrality.
The Demonstration Project is a pioneering initiative within the Mizushima Complex aimed at fostering collaboration among Hard-to-Abate industries, where reducing GHG emissions poses significant challenges. By utilizing CO2 from by-product gases in steel manufacturing to generate valuable chemicals, this project serves as a model for cooperative CO2 utilization. In the long term, the initiative aspires to create a conceptual framework for carbon recycling through the partnership of the steel and chemical sectors, leading to lower GHG emissions compared to traditional fossil fuel-based chemical production methods.
The Mizushima Complex, where all three companies operate, is a densely populated industrial area featuring a variety of industries. This region is ideal for cross-industry collaboration focused on CO2 utilization. Through the supply chain established within the Mizushima Complex, the three companies will enhance their collaboration to support the development of a sustainable society and advance the Demonstration Project.
Additionally, the three companies will seek broader collaboration opportunities with other businesses operating within the Mizushima Complex. By promoting initiatives aimed at achieving carbon neutrality across the entire Mizushima Complex, they hope to make substantial contributions to addressing global environmental challenges.
JFE Group has developed the JFE Group Environmental Management Vision 2050, identifying climate change as a top management priority and actively pursuing solutions to these challenges. In addition to developing various cutting-edge technologies, such as carbon-recycled blast furnaces and large, high-efficiency electric arc furnaces, JFE aims to realize carbon neutrality through CCUS, which involves collaboration both within and across industries. To establish a robust CCUS value chain, JFE will intensify efforts to expand and strengthen inter-company collaboration, both domestically and internationally.
Mitsubishi Chemical Corporation is committed to achieving a circular economy and aims for carbon neutrality with virtually zero GHG emissions by 2050. The company possesses technology* to directly produce propylene from methanol, a capability that was developed in partnership with JGC Corporation.
