Transition Industries LLC and IFC announce the agreement

Transition Industries LLC and IFC announce the agreement

Transition Industries LLC announced at COP28 that it has signed a JOint Project Development Agreement (JPDA) With the International Finance Corporation (IFC), to develop its methanol production facility near Topolobampo, Sinaloa, Mexico.

When it begins operations, Pacifico Mixinol is expected to become the largest single ultra-low-carbon chemicals facility in the world – producing approximately 300,000 tons per year of green methanol from captured carbon and green hydrogen, and 1.8 million tons per year of blue methanol from natural gas with capture Carbon.

Under the terms of the JPDA, IFC will share a portion of the project development costs, will provide significant expertise to ensure compliance with IFC’s environmental and social performance standards, and will leverage its expertise to support project financing. In return, IFC has the right to invest in a proportional percentage of the project’s common equity and lead financing of at least 50% of the project’s debt.

Rommel Gallo, CEO of Transition Industries, commented: “We are delighted to announce our JPDA program with IFC and are proud to partner on this pioneering project. Together we expect to set a new gold standard in ESG for the development of large industrial and chemical projects that address change.” climate, sustainably manages natural resources such as water, and works in partnership with local communities to achieve shared value.

“We would like to extend a very special thank you to the Government of Mexico and its various secretariats,” Gallo continued. “It is an honor to align with the goals of the Mexican Government to promote just and equitable development.”

“At IFC, we attract partners to invest with us while providing capital to companies in developing countries, a process we call ‘mobilization,’” said Alfonso Garcia Mora, IFC Vice President for Europe, Latin America and the Caribbean. “We are amplifying the positive impact of our financing on the lives of people in developing countries. Through this agreement, we are contributing to the development of a project that has the potential to reduce natural gas flaring, treat recycled wastewater, diversify Mexico’s capabilities in chemicals, increase exports, and generate opportunities for… Work. At least 40% of global methanol production comes from coal. Decarbonizing methanol production is essential for the IFC.

Pacifico Mixinol is expected to reach final investment decision (FID) in 2024 and begin commercial operations in late 2027. The project is expected to generate an average of 3,500 jobs during construction and up to 450 jobs during operations.

    (Tags for translation)Transition Industries LLC

You may also like...

Leave a Reply