As Fonterra officially opened the first electrode boiler at its Edendale site, it announced further plans to progress decarbonisation at its southernmost site.
The Co-operative will invest NZD 70 million more in two new electrode boilers as it moves away from coal and secures renewable energy solutions to future-proof its sites.
Minister for Climate Change and Energy Simon Watts officially opened the existing plant alongside Fonterra Chief Operating Officer Anna Palairet and congratulated Fonterra on these next steps.
The two new electrode boilers will replace two existing coal-fired boilers, providing renewable energy to support milk processing and future growth at the site. This includes additional power and steam heat capacity for the new UHT plant currently being built.
Fonterra’s Anna Palairet said the investment was a key step in strengthening operations at Edendale.
"Investing in renewable energy solutions, such as electrode boilers, will help ensure we can continue to process milk efficiently now and in the future,” said Palairet.
“Securing a reliable energy supply is critical to the resilience of our operations, and this investment will help future-proof Edendale for years to come.”
The investment also supported Fonterra’s broader decarbonisation and emissions reduction targets.
Once the two new electrode boilers are complete, emissions at the site are expected to be reduced by approximately 72,800 tonnes of Co2e annually, which is the equivalent of removing over 30,000 cars from New Zealand roads. This is forecast to result in an approximate four percent reduction towards Fonterra’s 2030 Scope 1 and 2 GHG emissions reduction target.
General Manager Operations – Lower South Island, Andrew Johns, said it was an exciting time for the site, with major investments shaping Edendale’s future.
“With the new UHT plant coming online in 2026, the recently installed electrode boiler and now two more electrode boilers on the way, there’s a real sense of progress here at Edendale,” said Johns.
“The investment is also great news for the local economy. Where possible, we will be engaging with local contractors, and we expect over 400 people from Southland and wider New Zealand to be part of the team on site delivering this investment.”
The investment was co-funded in a previously announced Energy Efficiency and Conservation Authority (EECA) partnership.
EECA Chief Executive, Dr Marcos Pelenur, believed the project was a positive step toward enhancing productivity, building resilient infrastructure, and ensuring long-term operational sustainability. This project supported greater energy security while laying the foundation for future growth and adaptability.
Construction is set to commence shortly, with the new boilers expected to be operational by August 2027.
