Asahi Kasei, Mitsui Chemicals and Mitsubishi Chemical Partner to Advance Carbon-Neutral Ethylene
Asahi Kasei, Mitsui Chemicals and Mitsubishi Chemical jointly announced Sep. 1 they have formed Setouchi Ethylene LLP to advance carbon neutrality and optimize production capacity at their ethylene manufacturing facilities in western Japan. The limited liability partnership, established Aug. 19, carries equal capital contributions from each company and will serve as the framework for studies targeting carbon neutrality and an optimized production system by 2030, the companies said.
The announcement follows joint feasibility studies launched in May 2024 and expanded in November 2024, which examined the transition to biomass-based feedstocks, adoption of low-carbon fuels and potential reductions in production capacity. The companies said establishing a single entity will allow them to accelerate execution of these measures.
Ethylene production, a foundation of the petrochemical industry used to produce materials for consumer goods, automobiles and semiconductors, is energy-intensive and heavily dependent on petroleum-based feedstocks. The partners said the LLP will allow for deeper collaboration on technologies and operating models to reduce greenhouse gas emissions.
Through the new partnership, the companies aim to integrate research, production planning and potential joint operating arrangements. The initiative is expected to strengthen cross-district coordination among the three firms’ facilities in western Japan while contributing to Japan’s carbon neutrality and circular economy goals.