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O-I Glass to invest $65 million in decarbonization in Veauche, France

O-I Glass plans to invest approximately USD 65 million into the electrification and decarbonization of its plant in Veauche, France. As the first O-I plant globally to use this technology, one of its two furnaces will be fully renovated and equipped with state-of-the-art hybrid-flex technology.

This leading-edge innovation establishes flexibility to replace up to 70 percent of the conventional fossil-fuel-based energy with electricity. In addition, the furnace will be equipped with heat recovery and an air preheating system, creating further efficiency gains and reductions in energy consumption and emissions. At an average 50 percent electricity level, on-site CO2 emissions are expected to drop by approximately 43 percent compared to a traditional furnace, significantly contributing to the company’s global target of a 25 percent reduction in greenhouse gas emissions by 2030.

The investment is consistent with O-I’s sustainability strategy and the company’s previously announced investment plan into plant upgrades.

Along with the decarbonization impact, the new technology is set to further reduce NOx emissions on top of the effects from the high performing DeNOx system already installed on site.

In parallel to the construction of the new hybrid furnace, O-I also plans to install a carbon-lowering heat recovery system in the plant. Heat recovered from the furnace will feed a new internal energy distribution network and will supply up to 94 percent of the plant’s heating needs. Once both investments are completed – expected for December 2025 – the Veauche plant will be one of the most modern and sustainable sites for O-I globally. At that time, the entire site is expected to reduce its CO2 emissions by up to 35 percent versus pre-2020 levels, when its other furnace was completely rebuilt.

With 2 furnaces and 7 lines, the O-I plant in Veauche produces approximately 300 million bottles each year. It is a role model for a local circular economy leveraging up to 87 percent of recycled glass (“cullet”) sourced from a processing plant no more than 20 kilommetres away. The plant in Veauche is well located within a few hours of most of its customers, minimizing delivery and logistics. Built in 1882, the plant is a key site dedicated to modern high-tech glassmaking, manufacturing high quality bottles for premium markets such as champagne, spirits and wine.

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