Three Japanese Chemical Giants Drive Ethylene Decarbonization Through Strategic Partnership

Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical have announced a groundbreaking collaboration to advance the decarbonization of ethylene production, one of the petrochemical industry’s most energy-intensive operations. The joint initiative marks a significant shift toward sustainable manufacturing in Japan’s chemical sector, addressing the pressing need to reduce carbon emissions from basic chemical production.

The three companies have formalized their commitment through a basic agreement to establish a unified joint operating entity overseeing two ethylene manufacturing facilities in western Japan. This consolidation strategy aims to streamline operations, enhance efficiency, and create the infrastructure necessary for large-scale low-carbon chemical production.

Government Recognition Accelerates Decarbonization Strategy

The partnership received a major boost after the companies successfully applied for and won selection in the Ministry of Economy, Trade and Industry’s “Fiscal 2025 Support Program for Energy and Manufacturing Process Conversion in Hard-to-Abate Industries.” This designation reflects government recognition of their commitment to decarbonization and provides critical financial support for the initiative.

The program directly enables the companies to pursue innovative approaches, including the adoption of biomass feedstock as a sustainable alternative to petroleum-derived resources—a cornerstone of their decarbonization strategy. This transition is particularly significant for an industry where fossil fuels have historically dominated raw material sourcing.

Consolidating Production Assets for Maximum Impact

The operational restructuring represents a decisive move toward consolidation. The companies plan to discontinue ethylene production at the Asahi Kasei Mitsubishi Chemical Ethylene Corp. facility at the Mizushima Plant in Kurashiki, Okayama Prefecture, with operations targeted to cease by fiscal 2030. This phase-out will be accompanied by consolidating all ethylene manufacturing at the Osaka Petrochemical Industries facility in Takaishi, Osaka, creating a more efficient production hub.

This consolidation aligns with broader industry trends toward centralization and operational optimization, enabling the companies to implement cutting-edge technologies across a unified platform.

Revolutionary Technology Leads the Decarbonization Path

At the heart of this decarbonization initiative lies Revolefin technology, currently under development by Asahi Kasei. The proprietary technology enables the production of ethylene, propylene, and other fundamental chemical building blocks from bioethanol—a renewable resource. An initial decarbonized production facility based on this breakthrough technology will be installed at the Mizushima Works, serving as the prototype for scaled commercial operations.

The shift from petroleum-derived ethylene to bioethanol-based production represents a paradigm shift in chemical manufacturing, offering a viable pathway toward meaningful decarbonization without compromising product quality or supply reliability.

Ambitious Timeline: Commercialization by Fiscal 2034

The companies have set clear milestones for their decarbonization roadmap. Following the consolidation target of fiscal 2030, the partnership aims to commence commercial-scale production of decarbonized basic chemicals by fiscal 2034. This nine-year timeline reflects the complexity of transitioning industrial infrastructure while maintaining uninterrupted supply chains.

The stock market responded positively to the announcement, with Asahi Kasei stock trading at 1,494 yen on the Tokyo Stock Exchange, reflecting investor confidence in the company’s strategic direction and the growth potential of the decarbonization initiative.