$3.3B Green Fuel Plant Breaks Ground in Mexico

A massive step toward cleaner shipping fuel is about to take shape on Mexico's Sinaloa coast, where a $3.3 billion methanol production facility will soon begin construction.

Transition Industries announced this week it signed a natural gas supply contract with CFEnergía, clearing the final hurdle to break ground on its Pacifico Mexinol project near Topolobampo. The plant is expected to open in late 2029 or early 2030.

When operational, the facility will become the largest ultra-low carbon chemicals plant on Earth. It will churn out 1.8 million tonnes of blue methanol and 350,000 tonnes of green methanol annually, fuels that can power container ships and support other industries with drastically lower carbon emissions than traditional options.

The project represents more than just environmental progress. During construction alone, more than 6,000 workers will find employment in Sinaloa, with at least 450 permanent jobs continuing once the plant opens.

CFEnergía agreed to supply roughly 160 million cubic feet of natural gas daily, sourcing it from the United States at market prices. The arrangement creates economic benefits on both sides of the border, with CEO Rommel Gallo noting it will drive "the export and consumption of more than $4 billion worth of U.S. natural gas."

Japan's Mitsubishi Gas Chemical has already committed to purchasing about half the plant's production, positioning Mexico as a major supplier of clean methanol to Asian markets. The plant's Pacific coast location offers prime access to global shipping routes while also strengthening Mexico's domestic chemical industry.

The Ripple Effect

This project showcases how green energy infrastructure can multiply positive impacts across borders and communities. Beyond the thousands of construction jobs and hundreds of permanent positions, the facility demonstrates environmental innovation at scale by using treated municipal wastewater instead of seawater, completely avoiding discharge into the nearby Bay of Ohuira.

The partnership brings together private industry, international finance through the World Bank Group's International Finance Corporation, and Australian investment bank Macquarie. Mexico's growing role in clean energy production strengthens both its economy and global climate goals simultaneously.

For a region seeking economic opportunity and a world desperately needing cleaner fuel alternatives, this $3.3 billion investment delivers both.