Japanese Petrochemical Firms Plan Ethylene Consolidation, Bio-Based Shift
Asahi Kasei, Mitsui Chemicals and Mitsubishi Chemical announced they have signed a basic agreement to promote decarbonization and optimize production capacity at two ethylene manufacturing facilities in western Japan.
The agreement follows the companies’ selection for Japan’s Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries, administered by the Ministry of Economy, Trade and Industry. According to the companies, the program supports initiatives such as replacing petroleum-derived feedstocks with biomass alternatives.
Under the agreement, the companies plan to establish a new joint operating entity and discontinue operations at the Asahi Kasei Mitsubishi Chemical Ethylene Corp. facility at the Mizushima Plant in Kurashiki, Okayama Prefecture. Ethylene production will be consolidated at the Osaka Petrochemical Industries facility in Takaishi, Osaka, with the transition targeted for fiscal 2030, the companies said.
As part of the program, Asahi Kasei plans to install an initial facility at its Mizushima Works to produce ethylene, propylene and other basic chemicals from bioethanol using its Revolefin technology, which remains under development. According to the companies, equipment performance and operational verification will precede a targeted start of joint commercial production in fiscal 2034.
The companies said equipment modifications will be required at multiple sites to support consolidation, and that the existing ethylene facility at Mizushima will be dismantled after production ceases. Future use of the vacated site will be evaluated for potential contributions to carbon-neutral initiatives.
The development follows the companies’ September 2025 announcement of their newly formed Setouchi Ethylene LLP joint venture to advance carbon neutrality and optimize production capacity at their ethylene manufacturing facilities in western Japan.