Transition Industries Signs 210 MW Green Hydrogen EPC Deal for Mexico Methanol Project

Transition Industries has signed a definitive Engineering, Procurement and Construction (EPC) agreement with Siemens Energy and Techint Engineering & Construction (Techint E&C) for a 210-megawatt (MW) electrolyzer facility at its Pacifico Mexinol project in Sinaloa, Mexico. Announced on 28 October 2026, the agreement advances the development of renewable hydrogen infrastructure intended to support one of the Americas' largest planned lower-carbon methanol production complexes.

The electrolyzer facility will form part of Pacifico Mexinol's planned 6,130-metric-tonne-per-day methanol complex, which aims to produce different categories of lower-carbon fuels and chemical feedstocks. Construction is expected to begin in early 2027, subject to completing project financing and other customary conditions. The complex is currently targeting commercial operations in 2030.

 

210 MW Electrolyzer Moves from Engineering to Construction Planning

 

The agreement builds on a Front-End Engineering Design (FEED) contract awarded to Siemens Energy and Techint E&C in August 2025. The new EPC arrangement establishes the framework for delivering the electrolyzer facility, combining Siemens Energy's hydrogen production technology with Techint's engineering and construction capabilities. The project will incorporate Siemens Energy's Elyzer P-300 technology, which produces hydrogen through water electrolysis using electricity.

At approximately 210 MW, the installation would become Siemens Energy's largest electrolyzer project in the Americas, according to the company. Dan Restrepo, Head of Electrolyzer Sales Americas, said, "The project has the potential to accelerate low-carbon fuel production in the region and advance the global decarbonization of hard-to-abate industries." The project represents a step towards deploying renewable hydrogen technology at the scale required for major industrial manufacturing facilities.

 

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Pacifico Mexinol Targets More Than 2 Million Tonnes of Methanol Annually

 

Once operational, Pacifico Mexinol is expected to produce approximately 175,000 metric tonnes of renewable fuels of non-biological origin (RFNBO) methanol annually, using renewable hydrogen supplied by the planned electrolyzer facility. The complex also targets 175,000 tonnes of recycled carbon fuel (RCF) methanol and approximately 1.8 million tonnes of lower-carbon methanol produced from natural gas with carbon capture.

Together, the three production pathways represent approximately 2.15 million tonnes of planned annual methanol output. These pathways have different feedstock requirements and carbon accounting considerations. Renewable hydrogen production depends on qualifying electricity inputs, while natural gas-based methanol with carbon capture retains upstream emissions and other lifecycle impacts. The announcement does not provide independently verified emissions-intensity figures or carbon-capture rates for the proposed production processes.

 

EPC Agreement Supports Mexico's Renewable Hydrogen Development

 

The project aims to strengthen Mexico's position in the growing market for renewable hydrogen and lower-carbon chemical production. Methanol is widely used as an industrial chemical feedstock and can also serve as a fuel for applications including shipping. Producing methanol through pathways with lower lifecycle greenhouse gas emissions could help industrial customers reduce their dependence on conventional fossil fuel-based products, provided the resulting emissions reductions are substantiated.

Rommel Gallo, CEO of Transition Industries, said, "Moving from front-end engineering to a signed EPC agreement is a significant milestone for Pacifico Mexinol." He explained that the collaboration combines Siemens Energy's electrolysis technology with Techint's construction expertise to support large-scale production of lower-carbon fuels and chemicals. The project is intended to respond to growing demand from industries seeking alternatives to conventional methanol production.

 

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Project Financing Remains Key to 2027 Construction Timeline

 

Although the definitive EPC agreement sets out a delivery framework, construction remains subject to customary conditions precedent, including completion of project financing. The companies expect construction of the electrolyzer facility to begin in early 2027, with the wider Pacifico Mexinol complex targeting operations in 2030. The announcement does not disclose the EPC contract value, final financing arrangements or independently verified emissions reduction projections.

The agreement reflects growing investment interest in integrating renewable hydrogen production with industrial chemical manufacturing. By combining a large-scale electrolyzer with multiple methanol production pathways, Pacifico Mexinol aims to supply lower-carbon products to markets seeking alternatives to conventional fuels and feedstocks. Its longer-term contribution to industrial decarbonization will depend on successful project delivery, renewable electricity sourcing, carbon capture performance, and demonstrated lifecycle emissions reductions.

 

Source: Transition Industries