Mitsubishi Chemical, Asahi Kasei and Mitsui Chemicals Form Alliance to Decarbonize Western Japan Ethylene Facilities

Three major Japanese chemical companies — Mitsubishi Chemical Corp., Asahi Kasei Corp., and Mitsui Chemicals, Inc. — have signed a basic agreement to jointly pursue carbon-reduction and efficiency improvements at ethylene production facilities in western Japan, the companies announced on Tuesday.

Under the framework of Japan’s “Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries” led by the Ministry of Economy, Trade and Industry (METI), the partners intend to accelerate the decarbonization of ethylene production — a key upstream process in the petrochemical industry that supplies raw materials for everyday products such as plastics, automotive components and semiconductors.

The agreement outlines plans to establish a new joint operating entity to oversee two major ethylene production sites in western Japan and to consolidate operations. As part of the transition strategy, the ethylene production facility of Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC) at its Mizushima Plant in Okayama Prefecture will be phased out, with operations shifted to a larger facility operated by Osaka Petrochemical Industries Ltd. (OPC) in Osaka.

A significant element of the initiative involves installing an initial production facility at Asahi Kasei’s Mizushima Works to manufacture ethylene, propylene and other basic chemicals from biomass-derived ethanol, using Revolefin™ technology currently under development. After performance verification, the three companies aim for the new facility to begin commercial production in fiscal 2034.

In addition to operational consolidation, the partners will explore ways to repurpose vacated plant sites in support of carbon-neutral objectives and other sustainable business opportunities once the AMEC facility has been dismantled.