In its next step to get out of coal, Fonterra has announced it will install a 20-megawatt electrode boiler at its Edendale site in Southland.
This is another step for the Co-operative as it works to get out of coal by 2037 and reduce Scope 1 and 2 emissions by 50% by 2030 (from 2018 baseline).
The forecast $36 million investment in the electrode boiler will reduce the Edendale site’s emissions by around 20% or 47,500 tonnes of CO2e per annum – the equivalent of taking almost 20,000 cars off NZ roads - and will reduce Fonterra’s overall carbon emissions from its NZ 2018 baseline by nearly 3% per annum once operational in FY25.
Fonterra Chief Operating Officer (acting) Anna Palairet says the team considered a number of energy options before deciding on the electrode boiler.
“Fonterra has a complex manufacturing operation spanning the country. As technologies develop, it’s important we continually assess which energy source and technology is best for each site.
“With up to 15 million litres of milk being processed at our Edendale site each day, we need to ensure we have a secure energy supply that can meet processing demands.
“Cost is also an important consideration. Getting out of coal requires significant investment and we need to choose the best option that reduces emissions and operational complexity while also doing what’s best for our farmer shareholders.”
Fonterra is partnering with Meridian Energy for the electricity supply who generate electricity from 100% renewable resources – wind, water and sun.
"Energy contributes around 40% of Aotearoa's total gross emissions and process heat makes up a third of this country's energy use. So, it makes sense for Meridian to work with big industry to switch energy sources to clean energy alternatives” says Meridian Chief Executive Neal Barclay.
“We congratulate Fonterra for taking this step given the significance and scale of their operations. Partnerships like these are critical to helping this country meet the target of net zero carbon emissions by 2050."