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Fonterra has announced an NZD 36 million (approx. $22 million) investment to install a 20-megawatt electrode boiler at its site in Edendale, New Zealand, marking its next step to transition away from coal.
This represents another step for the coop in its efforts to eliminate coal use by 2037 and achieve a 50% reduction in Scope 1 and 2 emissions by 2030.
The investment in the electrode boiler is expected to reduce emissions at the Edendale site by approximately 20%, equivalent to 47,500 tonnes of CO2e per annum. Once operational in the fiscal year 2025, the electrode boiler will contribute to lowering Fonterra's overall carbon emissions from its New Zealand 2018 baseline by nearly 3% per annum.
Fonterra's acting chief operating officer, Anna Palairet, said: “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 hydroelectric power generation company, Meridian Energy, to source electricity from 100% renewable resources, including wind, water and solar energy. Meridian's chief executive, Neal Barclay, added: "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”. “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." Read more like this: