Transition Industries and the Mexican Forestry Commission (CONAFOR) Sign Collaboration Agreement for Wetlands Conservation in Sinaloa

• The agreement establishes an Environmental Services Payment (ESP) program for the conservation of 600 hectares (ha) of wetlands in the region.
• The project will directly benefit the Ejido Plan de Guadalupe in Sinaloa, promoting biodiversity conservation and sustainable development of local communities.

LOS MOCHIS, Mexico--(BUSINESS WIRE)--Transition Industries LLC, developer of the Pacifico Mexinol project, and Mexico’s National Forestry Commission (Comisión Nacional Forestal, CONAFOR) signed a collaboration agreement to implement an Environmental Services Payment (ESP) scheme through joint funding for the conservation and protection of wetlands in the state of Sinaloa.

Under this long-term agreement, in development since 2025, funds will be allocated annually and distributed through a Concurrent Funds scheme, where Pacifico Mexinol contributes 50% of the funding and the other 50% is provided by CONAFOR. The program is in partnership with local community members from Ejido Plan de Guadalupe who will be responsible for carrying out the compensation and conservation activities with specialized technical support.

"This agreement reinforces Pacifico Mexinol's commitment to environmental sustainability and the development of the communities where we operate. Wetlands conservation not only protects the biodiversity and ecosystem services of the region but also strengthens resilience to climate change and generates economic opportunities for local ejidos," said Raul Rubio, Pacifico Mexinol’s Environmental Manager.

Pacifico Mexinol’s Environmental and Social Impact Assessments, including the Mexican Manifestación de Impacto Ambiental (MIA) approved by SEMARNAT in November 2023 and the internationally aligned ESIA approved by the International Finance Corporation (IFC) in 2025, confirmed that the Project avoids impacts on sensitive ecosystems such as mangroves and Sarcocaule Scrub. However, the Project has committed to implementing additional measures to guarantee the protection of sensitive ecosystems, including developing and promoting programs, such as this one with CONAFOR, for the benefit and protection of mangroves.

Despite no impact on sensitive ecosystems, the MIA requires 7.15 ha of reforestation (i.e., scrubbing) and cactus planting, plus 6 ha of mangrove restoration. As part of its commitment to ensuring that clean and responsible industrial development can go hand in hand with conservation, the Project has developed a strategy to meet the highest international biodiversity standards of “Biodiversity Net Gain” (creating or enhancing habitats of equal or greater value). As such it has entered into the agreement with CONAFOR for the conservation of a total of 600 ha of wetlands – nearly 100 times more than required by the MIA.

A conservation model with shared benefits

Wetlands are fundamental ecosystems for water regulation, carbon sequestration, biodiversity conservation, and flood protection. This agreement maintains these essential environmental services while generating direct economic benefits for the rural communities that manage these territories.

The ESP program promoted by CONAFOR has demonstrated its effectiveness throughout Mexico, currently benefiting 3,221 projects, of which 92% correspond to ejidos and communities. The scheme incentivizes active conservation of forests, jungles, arid zones, and mangroves through economic support conditional on compliance with environmental commitments.

Strategic impact and sustainable development

The agreement adds to the environmental initiatives that Pacifico Mexinol has implemented in the region, including the innovative municipal wastewater treatment and reuse system to avoid the use of any natural water or impacts to the Bay of Ohuira, and community investment programs that directly benefit local residents in Ahome Municipality.

Furthermore, the Project has committed to a 15 ha “Conservation Area” which forms a delineation between the Project area and the Bay of Ohuira. This area which includes natural vegetation will not be developed or subject to land use change. The area will allow for the conservation and protection of Sarcocaule Scrub and may also be used to enhance the quantity of other vulnerable species, like the Guayacam/Arbol Santo tree (Guaiacum coulteri).

The protection of wetlands in Sinaloa is an integral part of Mexinol's sustainability strategy, which includes the creation of more than 6,000 jobs during construction, at least 450 permanent jobs during operation, as well as the development of long-term environmental and social programs that benefit both ecosystems and local communities.

About the Project

Pacifico Mexinol is designed as a next-generation facility under a Net Zero model, with engineering aimed at virtually eliminating the carbon footprint of the process. With an investment exceeding $3.3 billion, the project seeks to transform methanol production—a key input for the global economy—through a sustainable and competitive approach.

Once operational, the facility will produce 6,140 metric tons (MT) of green and blue methanol a day using state-of-the-art technologies such as NX-AdWinMethanol Zero, which is based on renewable and environmentally friendly inputs. It is located approximately 9 km from the port of Topolobampo and close to the natural gas pipeline from Texas, United States.

The project will use existing infrastructure in the port and incorporates an innovative water management solution, as it will use wastewater from the city of Los Mochis, which will become income for the municipality of Ahome. This eliminates the freshwater pressure that new businesses usually generate.

The decision by Mexinol to take wastewater under the principle of treat-use-replenish the municipal system prevents the plant from competing with other uses of the resource and protects the Bay of Ohuira, since there will be no discharge of wastewater.

In addition, Mexinol will use electricity from renewable sources through Clean Energy Certificates (CELs), ensuring that its electricity consumption is sustainable and fulfilling Mexinol's mission to leverage technology and innovation to produce methanol safely and efficiently, while minimizing the environmental footprint and actively participating in the transition to a planet with low carbon emissions.

About Transition Industries

Transition Industries LLC, based in Houston, Texas, develops global-scale, net-zero carbon methanol and hydrogen projects in North America to address climate change and promote environmental and social sustainability. For more information about Pacifico Mexinol or Transition Industries, please email [e-mail].

About CONAFOR

The National Forestry Commission (CONAFOR) is the decentralized public agency of the Mexican Federal Government focused on developing, favoring, and promoting productive activities, conservation, and restoration in forestry matters. Through its Environmental Services Payment programs, CONAFOR promotes active conservation of Mexico's forest ecosystems through economic incentives that benefit ejidos, communities, and small landowners throughout the country.