Toymaker LEGO [LEGO:DC] and Danish drugmaker Novo Nordisk [NOVOB:DC] have agreed to purchase e-methanol, a lower-carbon alternative to conventional plastic ingredients, from Demark-based renewable energy firm European Energy, as reported by ESG Today on April 25. LEGO will explore using e-methanol in some types of its building bricks and plans to debut new prototype bricks in the future. Novo Nordisk seeks to use e-methanol to substitute fossil-based plastic in insulin pens and other medical devices. European Energy will start delivering e-methanol, which is produced from renewable energy, water, and captured biogenic carbon dioxide (CO2), to LEGO and Novo Nordisk from 2024.

European Energy is developing a Power-to-X facility in Aabenraa, Demark, to manufacture low-carbon fuels, including hydrogen and e-methanol. Last year, it also signed an agreement with shipping company Maersk [MAERSKB:DC] to sell half of the capacity at the Aabenraa plant, or 16,000 tons of e-methanol per year. Their partnership started in August 2021 when Maersk announced a plan to introduce the world’s first container vessel operating on carbon-neutral fuel in 2023, with the e-methanol produced by European Energy. The demand for carbon-neutral fuel is rapidly growing as hard-to-abate industries look to reduce their carbon footprints. Maersk, for example, plans to commission 19 vessels capable of running on e-methanol between 2023 and 2025, requiring about 750,000 tons of the fuel. Moreover, it would need roughly 6 million tons of e-methanol per year to achieve its 2030 emissions target for a 50% reduction in emissions per transported container.

Sources:

https://www.esgtoday.com/lego-novo-nordisk-to-use-low-carbon-materials-for-plastic-products/

https://www.reuters.com/business/sustainable-business/lego-novo-nordisk-agree-buy-green-methanol-plastic-production-2023-04-20/

https://www.maersk.com/news/articles/2021/08/18/maersk-secures-green-e-methanol

https://www.reuters.com/business/sustainable-business/maersk-agrees-project-with-spain-make-e-methanol-its-fleet-2022-11-03/

https://www.reuters.com/markets/commodities/maersk-moves-net-zero-target-forward-by-decade-2040-2022-01-12/