The Co-op is investing in electrification to future-proof operations and energy supplies across its North Island facilities.
New Zealand is fortunate to be one of the few nations to have abundant renewable energy resources. Looking at Transpower New Zealand’s real-time monitoring, upwards of 80% of our country’s electricity generated on any given day stems from hydro, geothermal, wind, or solar power sources, with gas, coal and diesel filling the balance.
Until recently, the Co-op has still relied on fossil fuels to run boilers at several of our sites – a model that is neither sustainable economically or environmentally. Accordingly, Fonterra is investing $150 million into electrification projects in the North Island over the next 18 months as the Co-op continues on our decarbonisation pathway by transitioning from fossil fuels to achieve net zero emissions by 2050 while balancing energy security, capital investment, and operational needs.
Fonterra’s Chief Operating Officer, Anna Palairet, says 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,” Anna Palairet, Fonterra’s Chief Operating Officer says.
“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.”
Projects underway
Whareroa
The site 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.
Edgecumbe
The site will transition from the use of steam and electricity generated through a co-generation plant, to a reliable source of renewable energy with the installation of a new electrode boiler. The $57 million investment is expected to reduce the site’s annual emissions by an estimated 28,000 tonnes – equivalent to removing around 11,000 cars from New Zealand.
Waitoa and Waitoa UHT
Following the closure of the last coal boiler in November 2024, the Co-op is investing a further $18 million in installing two Resistive Element Boilers to boost heat production, while providing a secure and reliable energy source allowing for future growth in UHT processing.
Fleet decarbonisation
The next step in looking for more economical solutions for the future includes a pilot of six EV tankers and associated infrastructure later in the year, expected to provide an approximately 60% annual reduction in fuel costs per tanker, along with environmental benefits.
Fonterra’s 2030 targets
- 50.4% absolution reduction in Scope 1 and Scope 2 GHG emissions from a FY18 base year.
- 30% intensity reduction in Scope 1 and Scope 3 Forest, Land and Agriculture (FLAG) GHG emissions from dairy, per tonne of fat-and- protein-correct milk from a FY18 base year.