Three Japanese Chemical Giants Collaborate to Advance Ethylene Facility Decarbonization and Capacity Integration with Government Support

Leveraging the Ministry of Economy, Trade and Industry's "FY2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Sectors," Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical are exploring measures to promote decarbonization and capacity optimization at two ethylene manufacturing facilities in western Japan. To achieve this goal, the three companies applied for and were selected for this support program to advance initiatives such as using biomass feedstocks to replace petroleum-derived resources.

The three companies have signed a basic agreement to establish a new joint operating entity for the two ethylene production facilities in western Japan. According to the plan, ethylene production operations at the Asahi Kasei Mitsubishi Chemical Ethylene Company (AMEC) Mizushima Plant in Kurashiki, Okayama Prefecture, will be terminated by fiscal year 2030, and the business will be integrated into the Osaka Petrochemical Industries Co., Ltd. (OPC) Semboku Plant in Takaishi, Osaka. This aims to optimize the capacity layout and concentrate resources to advance decarbonization transformation.

Through this support program, Asahi Kasei will utilize its under-development Revolefin™ technology to construct Japan's first facility for producing decarbonized basic chemicals like ethylene and propylene from bioethanol at its Mizushima Plant. After completing equipment performance verification, operational testing, and process evaluation, the three companies aim to begin joint commercial production of decarbonized basic chemicals in fiscal year 2034, supplying low-carbon feedstocks to the industrial chain.

Regarding the shutdown of the AMEC Mizushima Plant's ethylene facilities currently operated within the Mitsubishi Chemical site, Asahi Kasei and Mitsubishi Chemical will implement equipment modifications. Concurrently, the OPC Semboku Plant, serving as the integration base, will undergo corresponding equipment upgrades. The ethylene production facilities and related equipment at the AMEC Mizushima Plant will be dismantled immediately after operations cease. Following the dismantling, the three companies will jointly study how to utilize the vacated site to further promote regional carbon neutrality goals.

Ethylene production is the starting point of the petrochemical industry, and chemicals derived from it are widely processed into raw materials for various products, including daily goods, automobiles, and semiconductors. As individual companies face limitations in reducing greenhouse gas emissions and achieving facility carbon neutrality, there is a growing need for cooperation among multiple regional petrochemical companies to mutually provide technologies and jointly implement carbon neutrality measures.

Through this basic agreement, the three companies will deepen their alliance based on the principles of transparent management, fairly and reasonably sharing the costs and benefits of the basic chemicals business. Together, they will advance the carbon neutrality and production optimization of ethylene facilities in western Japan. With the aid of this support program, the three companies aim to accelerate the transition to competitive decarbonized basic chemicals, expand the carbon-neutral market across their business domains, and build a sustainable business model.