Ardagh Group and Absolut Vodka Co-invest in Hydrogen Fired Glass Furnace in a Global Industry First

Ardagh Group and Absolut Vodka co-invest in hydrogen fired glass furnace in a global industry first.

Ardagh Group S.A. and Absolut Vodka’s latest collaboration will enable the global spirits brand to become the first to move to a partly hydrogen energy-fired glass furnace for large-scale production, in a significant step to reduce the CO2 emissions from making its iconic bottles.

The hydrogen initiative is an important milestone for Absolut Vodka in becoming completely CO2 neutral by 2030. A prerequisite for being able to meet this goal is in reducing the carbon footprint of its glass packaging.

Ardagh Glass Packaging in Limmared, a subsidiary of Ardagh Group, has signed an agreement with Absolut Vodka, to use this partly hydrogen-fired furnace commencing in the second half of 2023. The pioneering collaboration will accelerate the transformation of the global glassmaking process for a more sustainable future.

Ardagh’s Limmared glass production facility in Sweden has been a partner with Absolut for 40 years and currently uses a combination of natural gas and electricity to power its furnaces. From the second half of 2023, Ardagh will launch a pilot in Limmared replacing 20% of its natural gas with green hydrogen to manufacture all of Absolut’s bottles across its portfolio.

This means a full-scale change of the continuous production of Absolut bottles for all markets globally. The hydrogen will be produced onsite at Ardagh by using renewably sourced electricity.

An industry-wide quest for reducing climate impact is taking place. Combined with other innovations and sustainability initiatives, new technologies such as hydrogen-fired furnaces will reduce carbon emissions from glass production significantly.

The use of hydrogen would reduce Absolut Vodka’s carbon footprint from glass by 20%. It follows other joint initiatives to reduce carbon emissions, such as the light-weighting of glass, increased use of electricity in the current furnace and a significant increase in recycled flint glass – today reaching 53% with the ambition to go even further.

Absolut owns one of the world’s most energy-efficient distilleries. It has 98% fewer emissions than an average distillery and has built up a surplus of emission rights as a result. The intent is to use these to invest in green transformation.

Absolut will support Ardagh in this project and the parties will work together to fulfill Absolut’s ambitions of a CO2 neutral product by 2030, by using today’s and tomorrow’s best available technologies in glass manufacturing.

Bo Nilsson, Managing Director of Ardagh Glass Limmared AB, says:

Our industry needs to be less reliant on fossil fuels and transition at pace to using more green energy.

“By investing in this new technology, we are embarking on a journey to reduce the carbon footprint of our glass packaging. There are challenges with such innovation, but we are committed to being an early mover in future-proofing our glass manufacturing operations world-wide.”

Stéphanie Durroux, Chief Executive of The Absolut Company, says:

Given we’ve been investing in our own production for decades, decreasing our emissions and increasing energy efficiency, we’re now in a position where we also can focus on the parts of our value chain that are outside of our own scope.

“The glass manufacturing industry is in a transformative journey, and the world can’t wait for the perfect solution. A bold and innovative approach is needed to accelerate radical change that will help solve the significant sustainability challenges that all glassmakers and buyers of glass face.”

Ardagh Group

Ardagh Group is a global supplier of infinitely recyclable metal and glass packaging for brand owners around the world. Ardagh operates 65 metal and glass production facilities in 16 countries, employing more than 20,000 people with sales of approximately $10bn.

About The Absolut Company

The Absolut Company has the worldwide responsibility for the production, packaging innovation and strategic marketing of Absolut Vodka, Malibu and Kahlúa.

Absolut Vodka is one of the world’s top ten international spirits brands. Every bottle of Absolut Vodka comes from one source, Åhus in southern Sweden.

Malibu is the number one rum-based coconut spirit in the world. Kahlúa coffee liqueur is the world leader in its category. The Absolut Company portfolio also includes Åhus Akvavit. The visitor center, Absolut Home, located next to the main production site for Absolut Vodka, was opened in 2018.

The head office is located in Stockholm, Sweden. Chairman and CEO is Stéphanie Durroux. The Absolut Company is a part of Pernod Ricard, the world’s second-largest wine and spirits producer (source: IWSR).

About Pernod Ricard

Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales amounting to €10,701 million in fiscal year FY22. The Group, which owns 17 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive portfolios in the industry with over 240 premium brands distributed across more than 160 markets.

Pernod Ricard’s portfolio includes Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and Mumm and Perrier-Jouët champagnes.

The Group’s mission is to unlock the magic of human connections by bringing “Good Times from a Good Place”, in line with its Sustainability and Responsibility roadmap.

Pernod Ricard’s decentralised organisation empowers its 19,480 employees to be on-the-ground ambassadors of its purposeful and inclusive culture of conviviality, bringing people together in meaningful, sustainable and responsible ways to create value over the long term.

Executing its strategic plan, Transform & Accelerate, Pernod Ricard now relies on its “Conviviality Platform”, a new growth model based on data and artificial intelligence to meet the ever-changing demand of consumers.