Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical have reached a strategic agreement to accelerate decarbonization and optimize ethylene production capacity across western Japan. The collaboration reflects a growing industry-wide push to reduce greenhouse gas emissions in hard-to-abate petrochemical processes while improving long-term operational efficiency.
The three companies have been selected for Japan’s “Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries” (HtA Support Program), administered by the Ministry of Economy, Trade and Industry (METI). Through this program, the partners will advance initiatives such as the use of biomass-based feedstocks to replace petroleum-derived raw materials in ethylene manufacturing.
Production Consolidation and Joint Operating Structure
Under the agreement, the companies plan to establish a new joint operating entity to manage two ethylene production facilities in western Japan. As part of the restructuring, operations at the Asahi Kasei Mitsubishi Chemical Ethylene Corp. (AMEC) facility located at the Mizushima Plant in Okayama Prefecture will be discontinued. Production will be consolidated at the Osaka Petrochemical Industries, Ltd. (OPC) facility in Takaishi, Osaka, with the transition targeted for fiscal 2030.
Following the shutdown, the ethylene production units and related equipment at the Mizushima site will be dismantled. The companies will jointly explore future uses of the vacated site that contribute to carbon neutrality and sustainable industrial development.
Bio-Based Ethylene and Revolefin™ Technology
A key pillar of the decarbonization strategy is the deployment of an initial production facility that converts bioethanol into ethylene, propylene, and other basic chemicals using Asahi Kasei’s Revolefin™ technology. This facility will be installed at Asahi Kasei’s Mizushima Works with support from the HtA program.
After verifying operational performance and process stability, the partners aim to begin joint commercial production of decarbonized basic chemicals by fiscal 2034. Equipment modifications will also be implemented at Mitsubishi Chemical facilities and at OPC’s Senboku Factory to support production consolidation and system integration.
Addressing Emissions Challenges in Petrochemical Manufacturing
Ethylene is a foundational feedstock for the petrochemical industry, serving as the starting point for materials used in everyday consumer goods, automotive components, electronics, and semiconductors. However, individual companies face increasing limitations in reducing emissions and achieving carbon neutrality on their own.
This collaboration highlights the importance of regional cooperation among neighboring petrochemical producers, enabling shared technology deployment, coordinated investment, and collective progress toward low-carbon manufacturing models.
Investment Scale and Emissions Reduction Impact
The total investment for the project is estimated at ¥21.2 billion, including potential government subsidies of up to ¥10.4 billion. The funding will support both structural changes—such as facility consolidation and logistics optimization—and process innovation through the introduction of bio-based ethylene production.
Once fully implemented, the initiative is expected to reduce CO₂ emissions by approximately 506,000 tons per year (Scopes 1 and 2) compared with recent operating levels at the Osaka and Mizushima sites. The main investment phase is scheduled for completion by the end of fiscal 2029.
Optimizing Capacity for a Low-Carbon Future
Following consolidation, total ethylene production capacity in western Japan will be reduced from 951,000 tons per year to 455,000 tons per year, creating a more efficient and lower-carbon production structure aligned with market demand. The new joint venture will operate under a transparent governance model, with cost and benefit sharing based on each company’s offtake volume.
Through this alliance and the support of the HtA program, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical aim to accelerate the commercialization of decarbonized basic chemicals, expand carbon-neutral markets, and establish sustainable business models for Japan’s petrochemical industry.
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