JFE Steel, Mitsubishi Gas Chemical, Mitsubishi Chemical to develop a carbon recycling supply chain at Mizushima Complex
JFE Steel Corp., Mitsubishi Gas Chemical Co. Inc. and Mitsubishi Chemical Corp. have signed a memorandum of understanding (MoU) concerning a demonstration project at the Mizushima Complex (Kurashiki City, Okayama Prefecture).
The project aims to produce methanol from byproduct gases emitted during steel manufacturing processes and further utilize the methanol to produce propylene, a key raw material for plastics.
The demonstration project is slated to begin in 2026. JFE Steel will supply byproduct
gases generated in the steel manufacturing process to Mitsubishi Gas Chemical, which will conduct demonstrations of methanol production using these gases as raw material at a new demonstration plant to be constructed. Mitsubishi Chemical will utilize this methanol to evaluate the compatibility with its propylene production technology (DTP®) at its existing demonstration facilities and consider applications for other chemical products.
Roles of the three companies and material flow in the demonstration project.
Reducing greenhouse gas (GHG) emissions in the industrial sector is a critical societal issue in addressing climate change. In the steel industry, efforts to cut CO₂ emissions in steel manufacturing processes include developing cutting-edge technologies, such as ultra-innovative blast furnaces and large-scale high-efficiency electric arc furnaces, and exploring carbon capture, utilization and storage (CCUS).
Methanol, a key basic chemical, can be synthesized from captured CO₂ and other sources. It has gained attention as a next-generation energy source, including as fuel for ships, and is expected to play a significant role in achieving GHG reductions and advancing a carbon-recycling society due to its broad applications in the chemical market.
Ethylene and propylene, essential raw materials for plastics widely used in daily life, are currently produced from fossil based raw materials in Japan. Therefore, the methanol-to-olefin (MTO) process, which produces these materials from methanol, is attracting attention as a promising technology to achieve carbon neutrality.
The demonstration project represents a new initiative within the Mizushima Complex to promote collaboration among hard-to-abate industries (industries where GHG emissions are difficult to reduce). By utilizing CO₂ contained in byproduct gases from steel manufacturing processes to produce valuable chemicals, the project provides a model for collaborative CO₂ utilization.
Looking ahead, the initiative aims to develop into a conceptual framework for carbon recycling through the collaboration of the steel and chemical industries. This approach is expected to reduce GHG emissions compared to traditional fossil resource-based methods for chemical production.
The Mizushima Complex, home to business operations of all three companies, is a high-density industrial area where diverse industries have concentrated. It is a promising region for cross-industry collaboration on CO₂ utilization. Through the supply chain established within the Mizushima Complex, the three companies will strengthen their collaboration to contribute to building a sustainable society and advancing the demonstration project.
Furthermore, the three companies will explore broader opportunities for collaboration with other businesses within the Mizushima Complex. By promoting initiatives aimed at achieving carbon neutrality across the entire Mizushima Complex, they aim to drive meaningful contributions to tackling global environmental challenges.
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