Clandeboye’s $64 million renewable energy conversion on track
Fonterra’s largest decarbonisation project to date – the conversion of two boilers to run on wood pellets at its Clandeboye site – is progressing well.
The conversion will help the Co-op achieve a 50.4% reduction in absolute Scope 1 & 2 emissions by 2030, from a 2018 baseline.
Over the past month, work has focused on decommissioning and removing outdated equipment to make way for the new wood pellet system, which includes purpose-built storage equipment and fuel conveying systems designed specifically for pellets.
New air filtration equipment has also been installed to capture large and fine particles from the boiler exhaust to ensure the new system operates smoothly and effectively.
Alongside these technical upgrades, the Co-op is upgrading facilities for its operational team. A new control room has been built, and existing rooms are being refurbished to provide a working environment that’s fit for purpose, comfortable and supports efficiency.
Conrad Harle, Fonterra’s Clandeboye Site Operations Manager – Cheese and Protein, says the project is both good for the environment and economy.
“Not only does this investment signal a viable renewable energy alternative and strengthen fuel optionality at the site, but also provides a boost to the local economy. We’ve got contractors coming in from across the South Island to support the construction, conversion and commissioning phases.
“The team here at Clandeboye is excited to begin this next chapter of the conversion project, as we continue to work closely with regional and New Zealand-based partners to deliver this significant decarbonisation investment for both the site and Fonterra as a whole.”
The shift to wood pellets at Clandeboye sends a strong signal to the wider industry, fostering fuel diversity in the South Island. By creating consistent demand, the investment helps catalyse the development of wood pellets supply chains across New Zealand.
Linda Mulvihill, Fonterra’s General Manager of Energy and Climate, says the move marks an important step in supporting regional decarbonisation efforts.
“The shift to wood pellets at Clandeboye sends a strong signal to the wider industry, fostering fuel diversity in the South Island. By creating consistent demand, the investment helps catalyse the development of wood pellets supply chains across New Zealand. This in turn supports future decarbonisation opportunities at other Fonterra sites including our remaining coal using sites – Darfield, Studholme, Takaka and Edendale.”
The converted boilers are expected to be fully operational by September 2025 providing secure, renewable energy to support Clandeboye’s processing needs.
Link to original announcement: Fonterra announces its largest decarbonisation project to date