O-I Glass plans to convert a furnace at its Holzminden, Germany production facility.
The technology upgrade will support the conversion of an existing furnace to a Gas-Oxy system.
It will take place in combination with an also planned on-site oxygen production plant.
O-I said the upgrade will result in enhanced energy efficiency and reduced emissions.
The setup is expected to reduce fuel consumption by up to 30% and lower CO2 emissions by approximately 4,000 tons annually compared to current technology.
Randy Burns, Chief Administrative & Sustainability Officer for O-I, said: “We are working with suppliers as we seek to deploy top glassmaking technologies to create new value by driving decarbonisation at O-I, increase productivity, and support our customers in their own decarbonisation efforts.”