JFE Steel, Mitsubishi Gas Chemical, and Mitsubishi Chemical have forged a collaborative partnership to pioneer a groundbreaking demonstration project at the Mizushima Complex. The initiative will revolutionize propylene production, a crucial raw material for plastics, by using by-product gases from steel manufacturing. This ambitious project will commence in the Japanese fiscal year 2026 (starting April).

The core of this project revolves around the utilization of methanol, a by-product gas rich in CO2, generated during steel production processes. JFE Steel will be responsible for supplying these by-product gases to Mitsubishi Gas Chemical, who will then employ them as feedstock for methanol production at a newly constructed demonstration plant within the Mizushima Complex.

Mitsubishi Chemical will then utilize the produced methanol to assess its compatibility with their proprietary Dominant Technology for Propylene Production (DTP). Developed in collaboration with plant engineering firm JGC Corp., DTP employs a highly efficient catalyst that ensures high propylene selectivity and stable performance, yielding propylene with high yield and low energy consumption. Mitsubishi Chemical will conduct evaluations at their existing demonstration facilities, exploring applications for propylene and other chemical products derived from this sustainable feedstock.

The Mizushima Complex, a hub of industrial activity housing operations of all three collaborating companies, provides an ideal setting for this project. Its high-density industrial environment fosters cross-industry collaboration, particularly in the realm of CO2 utilization. This project exemplifies a novel approach to addressing the challenges faced by “hard-to-abate” industries, sectors where greenhouse gas (GHG) emissions are notoriously difficult to reduce. By capturing and repurposing CO2 from steel manufacturing by-product gases, the partners are creating a model for collaborative carbon recycling.

The initiative's long-term vision extends beyond the immediate scope of the demonstration project. The partners aim to establish a comprehensive conceptual framework for carbon recycling, fostering deeper collaboration between the steel and chemical industries. This framework promises to significantly reduce GHG emissions compared to traditional fossil resource-based chemical production methods, contributing to a more sustainable and environmentally responsible industrial landscape.

Furthermore, the strategic location of the Mizushima Complex, with its diverse industrial ecosystem, offers potential for broader collaboration with other businesses in the region. The three companies are committed to exploring these opportunities, fostering a synergistic approach to CO2 utilization and promoting a circular economy.

This pioneering project represents a significant leap forward in the pursuit of sustainable industrial practices. By transforming steel by-products into valuable chemical feedstocks, JFE Steel, Mitsubishi Gas Chemical, and Mitsubishi Chemical are paving the way for a future where industrial waste is minimized, and resource efficiency is maximized, contributing to a cleaner and more sustainable planet.