Fonterra has taken a significant step toward its climate goals and operational resilience with NZD 150 million in investments in electrification projects across the North Island over the next 18 months.
Investments in electric boilers at the Co-operative's Whareroa, Edgecumbe, and Waitoa sites and fleet decarbonisation marked further steps in renewable energy, supporting the Co-operative's sustainability targets while future-proofing operations.
Fonterra has aimed to build enduring, cost-efficient assets while enhancing energy security across its manufacturing operations and ensuring a sustainable energy supply.
Fonterra’s Chief Operating Officer, Anna Palairet, said the investments were significant for the Co-operative's future operations.
“Last year we turned off the last coal boiler in the North Island, meaning manufacturing operations in the North Island are now coal-free. These investments are the next step in creating enduring assets that are fit for the future as we look to reduce our reliance on gas,” said Palairet.
"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.”
Palairet said these electrification projects were essential to ensuring efficient operations, a reliable energy supply for its manufacturing sites, and the long-term sustainability of the business. They also represented a commitment to Fonterra’s farmer owners that they had built a resilient, future-ready Cooperative.
The Whareroa site will undergo a staged energy transformation, the first stage of which will include the installation of two electrode boilers. The NZD 64 million 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 three percent reduction towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction target.
The Edgecumbe site will transition from using steam and electricity generated through a co-generation plant to a reliable renewable energy source with a new electrode boiler.
The NZD 57 million investment is expected to reduce the site’s annual emissions by an estimated 28,000 tonnes and contribute a 1.5 percent reduction towards Fonterra’s 2030 Scope 1 and 2 GHG emissions reduction target and reduce the Co-op’s overall natural gas reliance by approximately eight percent.
Following the closure of its last coal boiler in November 2024, the Co-op has invested a further NZD 18 million in installing two Resistive Element Boilers at Waitoa and Waitoa UHT to boost heat production while providing a secure and reliable energy source.
The next step in finding more economical solutions for the future is piloting six EV tankers and associated infrastructure later in the year. This is expected to reduce fuel costs per tanker by approximately 60 percent annually and provide environmental benefits.
