Published on 26 Mar 2024 on Zacks via Yahoo Finance
O-I Glass (OI) to Receive Fund for Decarbonization Project
O-I Glass, Inc. OI announced that it was shortlisted by the U.S. Department of Energy Office of Clean Energy Demonstrations to begin award negotiations for up to $125 million in Bipartisan Infrastructure Law and Inflation Reduction Act funding as part of the Industrial Demonstrations Program for its decarbonization project. The funded project will allow O-I to demonstrate the effectiveness of merging numerous technologies across a variety of glass colors and container varieties.The company's Glass Furnace Decarbonization Technology project intends to replace four furnaces at three of its locations in California, Ohio and Virginia to minimize scope 1 carbon dioxide emissions. It expects to cut emissions by 48,000 metric tons per year, which is an average 40% reduction in scope one emissions over the four furnaces and their respective manufacturing lines.The proposed rebuilds intend to merge five cutting-edge furnace technologies on each furnace, marking the first time all five technologies have been applied concurrently. These solutions reduce waste heat and promote electrification, resulting in more energy-efficient furnaces, and lower direct and indirect emissions.The company's O-I decarbonization project was chosen as one of 33 projects from more than 20 states to receive $6 billion. The funding will help illustrate commercial-scale decarbonization solutions required for the transition of energy-intensive industries to net-zero emissions, while reducing hazardous pollutants that endanger public health. It will also help in advancing local economies, and creating and maintaining high-quality jobs.O-I Glass has forecast that each of its projects would provide up to 300 construction jobs. The company is aiming to improve its diversity, equity and inclusion efforts by intentionally engaging underrepresented groups, such as women, LGBTQ+ and veterans.The company reported fourth-quarter 2023 adjusted earnings per share of 12 cents, which beat the Zacks Consensus Estimate of 3 cents. The bottom line was also higher than the company’s guidance of 3 cents. On a year-over-year basis, earnings decreased 68%.Revenues were $1.64 billion for the quarter under review, down 3.1% from the year-ago quarter. However, the top line surpassed the Zacks Consensus Estimate of $1.63 billion. The downside was driven by lower sales volume, partially offset by higher average selling prices and favorable foreign currency translation.
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