The project involves the production of propylene using methanol (a byproduct gas from the steel manufacturing process). Hans-Peter Merten/Getty Images

Japanese JFE Steel, Mitsubishi Gas Chemical, and Mitsubishi Chemical recently signed a memorandum of understanding to launch an innovative demonstration project in the Mizushima Industrial Zone of Kurashiki City, Japan, in the fiscal year 2026 (starting from April 2026). The project aims to utilize CO₂-containing byproduct gases generated during the steel manufacturing process to produce methanol, which will further be converted into propylene, the core raw material for polypropylene (PP) plastics, promoting the application of sustainable materials in the automotive, home appliance, and packaging sectors.

2026 Year initiated

The demonstration project is scheduled to commence in fiscal year 2026, starting in April. JFE Steel will supply by-product gases generated during the steel manufacturing process to Mitsubishi Gas Chemical, which will use these gases as raw materials for methanol production in a new demonstration plant to be constructed.

The role of three companies and material flow in a demonstration project. Image provided by Mitsubishi Chemical.

In addition, Mitsubishi Chemical will use methanol to test the compatibility with DTP propylene production technology at its existing pilot facility. The DTP (propylene production leading technology) was jointly developed by Mitsubishi Chemical and JGC Corporation, utilizing highly selective catalysts for low-energy and high-yield propylene production.

CO₂Utilize

This demonstration project represents a new initiative within the Mizushima Complex, aimed at fostering collaboration among hard-to-abate industries—those where greenhouse gas (GHG) emissions are difficult to reduce. The project utilizes CO₂ contained in by-product gases from steel manufacturing to produce valuable chemicals, providing a model for the synergistic use of CO₂.

Looking ahead, this initiative aims to develop a conceptual framework for carbon recycling through collaboration between the steel and chemical industries. Compared to traditional fossil resource-based chemical production methods, this approach is expected to reduce greenhouse gas emissions.

The Mizushima Complex, where these three companies operate, is a high-density industrial area with a concentration of various industries. It is a promising region for cross-industry collaboration on CO₂ utilization. Therefore, these three companies will explore broader collaboration opportunities with other businesses within the Mizushima Complex.

Translated by: Lily