Fonterra is set to invest $150 million in electrification projects across the North Island of New Zealand over the next 18 months.
The dairy co-op has set a target of 50.4% absolute reduction of Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, from a 2018 baseline.
Scope 1 are direct emissions that are owned or controlled by a company, while scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling.
Fonterra said that the latest plans mark “another significant step” towards its “climate goals and operational resilience”.
Fonterra
The plan involves investments in electric boilers at the co-op’s Whareroa, Edgecumbe and Waitoa sites, along with further fleet decarbonisation.
The Whareroa facility will undergo a staged energy transformation, with the first stage including the installation of two electrode boilers.
The $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.
This will contribute a 3% reduction towards Fonterra’s overall 2030 scope 1 and 2 GHG emissions reduction target.
In Edgecumbe, the site will transition from the use of steam and electricity generated through a co-generation plant to a new electrode boiler at a cost of $57 million.
This investment is expected to reduce the site’s annual emissions by an estimated 28,000 tonnes.
Along with contributing to a 1.5% reduction towards Fonterra’s overall 2030 scope 1 and 2 GHG emissions reduction target, it will also reduce the co-op’s overall natural gas reliance by approximately 8%, based on the past two years’ usage.
Following the closure of its last coal boiler in November 2024, Fonterra is investing a further $18 million in installing two resistive element boilers at Waitoa to boost heat production.
The co-op will also pilot six electric vehicle (EV) tankers this year, which is expected to provide an approximately 60% annual reduction in fuel costs per tanker.
Emissions
Anna Palairet, Fonterra’s chief operating officer, said that the investments are a significant step for the co-op’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.
“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.
“These electrification projects are at the heart of ensuring efficient operations with a reliable energy supply for our manufacturing sites and to support the long-term sustainability of our business.
“It also represents a commitment to our farmer owners that we are building a resilient, future-ready co-operative,” she said.
