Japan-based steel producer JFE Steel has announced that it has started a carbon recycling supply chain demonstration project in cooperation with Mitsubishi Gas Chemical and Mitsubishi Chemical at the Mizushima Complex in Kurashiki, Okayama Prefecture, Japan.
The demonstration project, which commenced in September 2026, aims to utilize by-product gas generated during steelmaking processes to produce methanol and subsequently propylene. The initiative follows a demonstration plan announced by the three companies in March 2025.
Steelmaking by-product gas used to produce methanol and propylene
As part of the project, JFE Steel has begun supplying by-product gas generated during its steelmaking operations to Mitsubishi Gas Chemical. Mitsubishi Gas Chemical has started producing methanol from the supplied gas at its newly constructed Carbopath™ demonstration plant within its Mizushima facility.
Meanwhile, Mitsubishi Chemical has begun using the methanol as a raw material to produce propylene at its existing demonstration facility, utilizing its DTP® process.
Companies to evaluate commercial viability of carbon recycling technology
The three companies will continue the demonstration project to assess its economic viability and identify technical and operational challenges, as well as potential pathways toward commercialization.
In addition, JFE Steel, Mitsubishi Gas Chemical and Mitsubishi Chemical plan to explore further collaboration opportunities with other businesses operating within the Mizushima Complex.
The project is intended to support the development of a carbon recycling supply chain connecting steelmaking by-products with chemical production.
