Fonterra Announces Next Steps In Move Out Of Coal

Scoop

07-05-2025

As Fonterra officially opened the first electrode boiler at its Edendale site today, it announced further plans to progress decarbonisation at its Southern most site.
The Co-operative will invest a further $70 million in two new electrode boilers as it moves away from using coal while securing renewable energy solutions to future-proof its sites.
Minister for Climate Change and Energy, Simon Watts, who officially opened the existing plant alongside Fonterra Chief Operating Officer Anna Palairet, congratulated Fonterra on these next steps.
'The private sector has a leading role to play in increasing clean energy and meeting New Zealand's emissions targets. I am thrilled to see Fonterra building their renewable energy capacity and getting one step closer to meeting their decarbonisation goals.'
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 including additional power and steam heat capacity for the new UHT plant currently being built.
Fonterra's Anna Palairet says the investment is 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 both now and in the future. 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 supports Fonterra's broader decarbonisation and emissions reduction targets*. Once the two new electrode boilers are complete, it is expected emissions at the site will be reduced by approximately 72,800 tonnes of CO2e annually, the equivalent of removing over 30,000 cars from New Zealand roads. This is forecast to result in an approximate 4%reduction** towards Fonterra's overall 2030 Scope 1 and 2 GHG emissions reduction target.
General Manager Operations – Lower South Island, Andrew Johns says it's 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.
'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 is co-funded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership.
EECA Chief Executive, Dr Marcos Pelenur, believes that 'the project is a positive step toward enhancing productivity, building resilient infrastructure, and ensuring long-term operational sustainability. This project supports 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.
*The Co-operative's target is 50.4% absolute reduction of Scope 1 & 2 GHG emissions by 2030 from a 2018 baseline.
** From a 2018 baseline.
Further details on the Co-op's progress to reduce manufacturing emissions:
Coal free in manufacturing operations in the North Island (November 2024): With the turning off of the Co-op's Waitoa site's last coal boiler, the Co-op announced it was no longer using coal in the North Island. Work continues to transition the five sites in the South Island that still use coal.
Edendale electrode boiler (October 2024): The Co-op's first electrode boiler generates steam from electricity and cuts the site's annual overall emissions by around 37,500 tonnes – the equivalent of removing around 15,600 cars from New Zealand roads.
Hautapu boiler conversion (August 2024): Conversion from coal to wood pellets, with an expected annual emissions reduction of around 12,000 tonnes – the equivalent of removing around 6,500 cars from New Zealand roads.
Clandeboye heat recovery project (February 2024):The new heat recovery system in the Lactose plant aims to decrease annual carbon emissions by around 3,000 tonnes – the equivalent of removing around 1,250 cars from New Zealand roads.
Waitoa wood biomass boiler (October 2024): The new boiler at Waitoa has halved coal usage at the site, cutting emissions by around 46,000 tonnes annually – the equivalent of removing around 20,000 cars from New Zealand roads.
Whareroa heat pumps (September 2023): Installation of New Zealand's largest heat pumps as part of a refrigeration upgrade, decreasing annual carbon emissions by around 9,100 tonnes – the equivalent of removing around 3,800 cars from New Zealand roads.
Stirling biomass boiler (August 2023): Stirling's wood biomass boiler has reduced annual carbon emissions by around 18,500 tonnes – the equivalent of removing around 7,700 cars from New Zealand roads – and is the Co-op's first site running on 100% renewable thermal energy.
Te Awamutu boiler conversion (August 2020): Converted the coal boiler to use wood pellets, removing coal use and emissions by around 84,000 tonnes – the equivalent of removing around 35,000 cars from New Zealand roads.
Brightwater biomass co-firing (September 2018): Moved to co-firing wood biomass, reducing overall annual site carbon emissions by around 2,400 tonnes – the equivalent of removing around 530 cars from New Zealand roads.