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Fonterra, New Zealand's largest dairy exporter, is set to invest $150 million in electrification initiatives across its North Island operations over the next 18 months.
Through these initiatives, the company says it aims to bolster the co-operative's sustainability efforts and future-proof its manufacturing processes amid increasing environmental scrutiny.
The investment will focus on the installation of electric boilers at key sites, including Whareroa, Edgecumbe and Waitoa, as well as advancing fleet decarbonisation efforts. The projects are integral to Fonterra's commitment to reducing GHG emissions and transitioning to renewable energy sources.
Fonterra's chief operating officer, Anna Palairet, commented: “Last year, we successfully decommissioned our last coal boiler in the North Island, marking a pivotal shift towards coal-free manufacturing. The current investments represent a crucial step in minimising our reliance on gas and enhancing our energy security."
The specific projects outlined include:
Whareroa Site: A $64 million investment to install two electrode boilers, projected to cut annual emissions by approximately 51,000 tonnes, akin to removing about 21,000 vehicles from New Zealand's roads. This initiative aims to contribute 3% towards Fonterra's 2030 Scope 1 and 2 greenhouse gas emissions reduction target.
Edgecumbe Site: Transitioning from a co-generation plant to a new electrode boiler with an investment of $57 million, expected to reduce emissions by around 28,000 tonnes annually – equivalent to removing approximately 11,000 cars. This project will also decrease the co-operative's natural gas reliance by about 8%.
Waitoa and Waitoa UHT: Following the closure of its last coal boiler, Fonterra will invest $18 million in two Resistive Element Boilers to enhance heat production and support future growth in UHT processing.
Additionally, Fonterra is piloting a fleet decarbonisation initiative that includes the deployment of six electric tankers, which could result in a 60% reduction in annual fuel costs per tanker, alongside significant environmental benefits.
Fonterra's electrification strategy aligns with its broader goal of achieving a 50.4% absolute reduction in Scope 1 and 2 greenhouse gas emissions by 2030, using 2018 levels as a baseline. This commitment not only addresses regulatory pressures but also serves to reassure farmer owners of Fonterra's dedication to building a resilient and sustainable co-operative.
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