August 25, 2008 / 9:49 AM / 11 years ago

Japan's Mitsui Chemicals to make methanol from CO2

TOKYO, Aug 25 (Reuters) - Japan’s Mitsui Chemicals Inc (4183.T) said on Monday it would invest 1.5 billion yen ($13.6 million) to build a demonstration plant to turn carbon dioxide (CO2) into methanol for petrochemical production and reduction of CO2 emissions.

At the envisaged plant, about 150-160 tonnes of CO2 emitted from its plant in Osaka, western Japan, will be combined with hydrogen to produce about 100 tonnes of methanol a year.

It will be the world’s first such plant, a company spokesman said.

The manufactured methanol will then be converted to petrochemical products such as ethylene and propylene and aromatics such as benzene, the spokesman added.

The company will start construction of the plant inside the firm’s Osaka facility in October 2008, with the plant scheduled to be completed in February 2009.

The Tokyo-based firm aims to complete development of the technology by March 2010. ($1=110.11 Yen) (Reporting by Osamu Tsukimori; Editing by Chris Gallagher)

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