Fonterra has unveiled plans to install a 20-megawatt electrode boiler at its Edendale site in Southland as part of its ongoing commitment to phase out coal usage. This initiative marks another significant stride toward Fonterra's goal of eliminating coal dependency by 2037 and reducing Scope 1 and 2 emissions by 50 percent by 2030, based on a 2018 baseline.
The projected investment of $36 million in the electrode boiler is expected to slash the Edendale site's emissions by approximately 20 percent, equivalent to a reduction of 47,500 tonnes of CO2e per annum. This reduction is comparable to removing nearly 20,000 cars from New Zealand roads. Once operational in FY25, the electrode boiler will contribute to Fonterra's overall carbon emissions reduction from its 2018 baseline by nearly 3 percent annually.
Acting Chief Operating Officer Anna Palairet said thorough consideration was given to various energy options before selecting the electrode boiler. With the Edendale site processing up to 15 million litres of milk daily, ensuring a reliable energy supply to meet production demands is paramount. Additionally, cost-effectiveness plays a crucial role in decision-making, as exiting coal necessitates substantial investment while prioritising emission reduction and operational efficiency.
Fonterra has partnered with Meridian Energy for electricity supply, leveraging Meridian's commitment to generating electricity from 100 percent renewable resources such as wind, water, and solar energy. Meridian's Chief Executive Neal Barclay applauded Fonterra's proactive approach and emphasised the importance of industry partnerships in transitioning to clean energy alternatives. This collaboration aligns with national goals, including achieving net-zero carbon emissions by 2050 by addressing a significant portion of New Zealand's energy-related emissions.
