Asahi Kasei, Mitsui Chemicals and Mitsubishi Chemical have entered into an agreement to promote the decarbonisation and optimisation of ethylene production capacity in western Japan.
The collaboration follows their selection for the Ministry of Economy, Trade and Industry's 'Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries' (HtA Support Programme).
The initiative seeks to introduce biomass feedstock as an alternative to petroleum-derived resources.
The companies plan to establish a joint operating entity to manage their two ethylene production facilities, resulting in the eventual closure of the Asahi Kasei Mitsubishi Chemical Ethylene (AMEC) facility at the Mizushima Plant in Kurashiki, Okayama Prefecture.
Operations will be consolidated at the Osaka Petrochemical Industries (OPC) facility in Takaishi, Osaka, by fiscal year 2030.
As part of this transition, Asahi Kasei and Mitsubishi Chemical will make equipment modifications at OPC's Senboku Factory and other relevant sites. Following the cessation of production at AMEC's Mizushima Plant, its equipment will be dismantled, with plans to explore potential uses for the vacated site that align with carbon neutrality objectives.
An investment of Y21.2bn ($139m) has been earmarked for this transition, including a maximum subsidy application amount of Y10.4bn. This investment will focus on transitioning ethylene production facilities and related equipment, as well as establishing an initial production facility using Asahi Kasei’s Revolefin technology.
Ethylene production is a key component of the petrochemical industry, serving as a foundation for materials used in various products, from consumer goods to semiconductors. The new cooperative strategy among these chemical manufacturers aims to address challenges in reducing greenhouse gas (GHG) emissions by sharing technology and jointly implementing carbon-neutral measures.
The initial step under the HtA Support Programme involves installing a facility at Asahi Kasei's Mizushima Works to produce decarbonised chemicals like ethylene and propylene from bioethanol using Revolefin technology, which is currently under development.
Upon successful verification of operational efficiency, commercial production is scheduled to begin by fiscal year 2034.
Through this agreement, Asahi Kasei, Mitsui Chemicals and Mitsubishi Chemical aim to optimise production while ensuring transparent management and equitable distribution of costs and benefits. The HtA Support Programme is expected to facilitate a transition towards competitive decarbonised basic chemicals, thereby supporting market expansion and sustainable business models.
The expected CO₂ emissions reduction from structural transitions is estimated at 506,000 tonnes per year compared to figures from 2023 for Osaka and 2024 for Mizushima. While the establishment of a joint operating entity is intended, specific details are still being finalised.
