Mitsubishi Gas Chemical signs long-term green methanol offtake deal with ACME

Mitsubishi Gas Chemical signed a long-term green methanol offtake agreement with India's ACME Group on July 2, 2026, with a signing ceremony attended by India's Ministry of New and Renewable Energy and Japan's Ministry of Economy, Trade and Industry officials. Under the contract, Mitsubishi Gas Chemical will take about 100,000 tons per year of green methanol from ACME's Odisha project starting in 2030, when the plant is scheduled to begin commercial operation. The company plans to supply the methanol for fuel and chemical feedstock uses across Asia, centered on Japan.

Key facts

Market context

Methanol is one of the most widely traded bulk chemicals. It serves as a feedstock for formaldehyde, acetic acid, methyl tertiary-butyl ether and olefins, and it is also used as a marine and road fuel blend component. Demand is driven mainly by construction resins, automotive and appliance plastics, and fuel markets, with Asia accounting for a large share of consumption. Conventional methanol is produced largely from natural gas or coal, so its carbon intensity is high. Green methanol, made from renewable hydrogen and captured carbon dioxide or biomass, is a lower-carbon alternative that buyers are seeking as shipping and chemical customers face emissions targets. Long-term offtake agreements of this kind are commonly used by producers to secure financing for new capacity and by buyers to lock in supply before volumes are available. Such contracts can influence regional supply balances and the pricing premium for low-carbon product relative to fossil-based methanol.

Source: official release on mgc.co.jp. Summary and context written by Market Krystal.