Sunday, February 16, 2025

Fonterra Invests $150M to Electrify North Island Operations

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Recently Fonterra invests $150M to electrify its North Island operations within the next 18 months. This effort will require $150 million, which, in addition to increasing energy security and mitigating environmental damage, includes decarbonizing vehicles and installing electric boilers at Waitoa, Edgecumbe, and Whareroa sites.

Key Investments:

  • Whareroa: Fonterra plans to spend $64 million on two electrode boilers which are projected to cut emissions by 51,000 tons annually, smoothing the way for Fonterra to achieve its 2030 GHG emissions target, along with other initiatives, equating to a 3% reduction of overall targeted emissions for Fonterra.
  • Edgecumbe: This project will cost $57 million, with plans to switch the existing co-generation plant for an electrode boiler for Edgecumbe, which will remove annually 28,00 tonnes of carbon emissions, helping Fonterra achieve its 2030 goals with a 1.5% reduction emission aid.
  • Waitoa: Following the closure of the last coal boiler in November 2024, Fonterra plans to spend $18 million on two resistive element boilers to support anticipated growth in UHT processing.

Fonterra will trial six electric vehicle tankers later this year, expecting fuel expenditure per tanker to be reduced by 60% on top of other environmental advantages.

These steps will help Fonterra achieve its goal of 50.4% net reduction in GHG emissions from Scope 1 and 2 by 2030 rounded from 2018.

Gas dependence is next on the chopping block after coal use has been fully eliminated with the cooperatives North Island operations.

Anna Palairet, Fonterra’s Chief Operating Officer, mentioned that there is always a trade-off between the cost for energy and its reliability relating to environmental concerns. She claimed that the implementation of these electrification projects is of utmost importance for current and future operational efficiency.

This shows Fonterra remains committed toward developing strong, resilient cooperatives that are prepared for the future while enhancing the welfare of the farmer owners and the ecosystem.