Greening of sites and tankers will cut carbon footprint and reduce reliance on gas.
Fonterra is to invest $150 million in electrification projects across the North Island over the next 18 months.
These include electric boilers at its Whareroa, Edgecumbe and Waitoa sites, along with further decarbonising its tanker fleet.
Fonterra’s chief operating officer, Anna Palairet, said the investments are a significant step for the co-operative’s future operations.
“Choosing the right energy solutions is about striking a balance between affordability, security of energy supply and reducing our environmental footprint, and the new electric boilers are crucial to navigating this challenge.”
The electrification projects are at the heart of ensuring efficient operations with a reliable energy supply for Fonterra’s manufacturing sites and to support the long-term sustainability of the business, Palairet said.
At Whareroa, the site will undergo a staged energy transformation. The first stage includes the installation of two electrode boilers. This $64m investment is expected to reduce the site’s annual emissions by an estimated 51,000 tonnes – the equivalent of removing around 21,000 cars from New Zealand roads – and contribute a 3% reduction towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction targets.
At Edgecumbe, the site will transition from the use of steam and electricity generated through a co-generation plant, to a reliable source of renewable energy with the installation of a new electrode boiler.
The $57m investment is expected to reduce the site’s annual emissions by an estimated 28,000 tonnes – equivalent to removing around 11,000 cars from NZ roads – and contribute a 1.5% reduction towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction targets and reduce the co-op’s overall natural gas reliance by 8%.
A further $18m will be invested at Waitoa and its UHT plant in installing two resistive element boilers to boost heat production while providing a secure and reliable energy source allowing for future growth in UHT processing.
Fonterra will also embark on a pilot of six EV tankers and associated infrastructure later in the year, expected to provide a 60% annual reduction in fuel costs per tanker, along with environmental benefits.
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