This major investment is set to dramatically cut Fonterra’s manufacturing emissions by an impressive 9%. This reduction is equivalent to eliminating 155,000 tonnes of CO2e annually, or the environmental impact of taking over 64,000 cars off the road each year. The move is a direct response to tightening global coal supplies and aligns with Fonterra’s broader, ambitious goal of completely phasing out coal usage across all its processing sites by 2037, driving a cleaner future for dairy production.

The complex conversion project entails a complete overhaul of the energy infrastructure at Clandeboye. This includes the meticulous dismantling of old, coal-burning equipment and the installation of entirely new systems specifically designed for wood pellet operations. New fuel conveying systems, larger fuel bins, cyclones, and advanced baghouses are all part of this comprehensive upgrade, ensuring a seamless transition to a renewable energy source for large-scale milk processing.

Beyond the direct environmental benefits, this substantial investment by Fonterra is also set to provide a significant boost to the local economy. The project is engaging numerous contractors from across the South Island, creating employment opportunities and stimulating regional economic activity. This highlights how large-scale sustainability initiatives in the dairy sector can generate positive ripple effects throughout local communities, proving that green investments can also be smart economic choices.