Fonterra Unveils $64 Million Investment to Slash Emissions by 9%
Source: DairyNews.today
Fonterra is investing $64 million to convert two coal-fired boilers at its Clandeboye site in South Canterbury to wood pellet fuel, a move that will reduce the dairy cooperative’s overall emissions by 9%.
The initiative is expected to cut 155,000 tonnes of CO2-equivalent emissions annually, equivalent to removing more than 64,000 cars from New Zealand roads each year.
The project is part of Fonterra’s broader commitment to phase out coal by 2037 and achieve a 50.4% reduction in absolute Scope 1 and 2 emissions by 2030, compared to 2018 levels.
Largest Decarbonisation Investment
“This conversion project at Clandeboye is a significant milestone in our journey towards sustainability and climate action,” said Anna Palairet, Fonterra’s Chief Operating Officer. “As our largest decarbonisation investment to date, it reduces our environmental impact while securing operational resilience. It builds on successful conversions at our Te Awamutu and Hautapu sites.”
Boosting Renewable Energy Supply Chains
Conrad Harle, Fonterra’s site operations manager for cheese and protein, emphasized the regional benefits of the transition. “Switching to wood pellets diversifies renewable energy options in the South Island and strengthens our site’s fuel resilience. This project also supports the development of regional wood pellet supply chains, which will be crucial for future decarbonisation investments at other sites, including Darfield, Studholme, Tākaka, and Edendale.”
EECA Partnership and Broader Decarbonisation Goals
The boiler conversion is co-funded through Fonterra’s partnership with New Zealand’s Energy Efficiency and Conservation Authority (EECA). The partnership targets cumulative reductions of 1.2 million tonnes of CO2 from coal reduction activities by 2030, enabling Fonterra to increase its emissions reduction target from 30% to 50% by the end of the decade.
EECA Chief Executive Dr. Marcos Pelenur welcomed the initiative. “This project highlights the central role of biofuels and innovative technology in advancing clean energy solutions and improving energy efficiency,” Pelenur said.
The Clandeboye boilers are scheduled to be operational by September 2025. Fonterra also plans to transition the site’s remaining boilers to renewable energy as part of its ongoing decarbonisation strategy.
Additional Energy Efficiency Projects
Earlier in 2024, Fonterra completed another EECA-supported project at Clandeboye with the installation of a heat recovery system in its lactose plant. The system recaptures high-grade heat, reducing steam usage by 2.5 tonnes per hour and cutting annual carbon emissions by 3,000 tonnes—equivalent to taking approximately 1,250 cars off the road.
Fonterra’s investments underscore its commitment to sustainability and its role in fostering renewable energy infrastructure to support New Zealand’s climate goals.
The project is part of Fonterra’s broader commitment to phase out coal by 2037 and achieve a 50.4% reduction in absolute Scope 1 and 2 emissions by 2030, compared to 2018 levels.
Largest Decarbonisation Investment
“This conversion project at Clandeboye is a significant milestone in our journey towards sustainability and climate action,” said Anna Palairet, Fonterra’s Chief Operating Officer. “As our largest decarbonisation investment to date, it reduces our environmental impact while securing operational resilience. It builds on successful conversions at our Te Awamutu and Hautapu sites.”
Boosting Renewable Energy Supply Chains
Conrad Harle, Fonterra’s site operations manager for cheese and protein, emphasized the regional benefits of the transition. “Switching to wood pellets diversifies renewable energy options in the South Island and strengthens our site’s fuel resilience. This project also supports the development of regional wood pellet supply chains, which will be crucial for future decarbonisation investments at other sites, including Darfield, Studholme, Tākaka, and Edendale.”
EECA Partnership and Broader Decarbonisation Goals
The boiler conversion is co-funded through Fonterra’s partnership with New Zealand’s Energy Efficiency and Conservation Authority (EECA). The partnership targets cumulative reductions of 1.2 million tonnes of CO2 from coal reduction activities by 2030, enabling Fonterra to increase its emissions reduction target from 30% to 50% by the end of the decade.
EECA Chief Executive Dr. Marcos Pelenur welcomed the initiative. “This project highlights the central role of biofuels and innovative technology in advancing clean energy solutions and improving energy efficiency,” Pelenur said.
The Clandeboye boilers are scheduled to be operational by September 2025. Fonterra also plans to transition the site’s remaining boilers to renewable energy as part of its ongoing decarbonisation strategy.
Additional Energy Efficiency Projects
Earlier in 2024, Fonterra completed another EECA-supported project at Clandeboye with the installation of a heat recovery system in its lactose plant. The system recaptures high-grade heat, reducing steam usage by 2.5 tonnes per hour and cutting annual carbon emissions by 3,000 tonnes—equivalent to taking approximately 1,250 cars off the road.
Fonterra’s investments underscore its commitment to sustainability and its role in fostering renewable energy infrastructure to support New Zealand’s climate goals.
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