New Zealand dairy co-op Fonterra has opened its first electrode boiler at its Edendale in May, as it announced further decarbonisation plans.
The co-op says it will invest an additional NZ$70m in two new electrode boilers as part of an attempt to move away from using coal in favour of renewables. The opening featured climate change and energy minister Simon Watts, who congratulated Fonterra on the initiative.
“The private sector has a leading role to play in increasing clean energy and meeting New Zealand’s emissions targets,” he said. “I am thrilled to see Fonterra building their renewable energy capacity and getting one step closer to meeting their decarbonisation goals.”
The new boilers, which will replace existing coal-fired ones, will provide energy for milk processing at the site as well as additional power and steam heat capacity for a new UHT plant under construction.
“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,” said Fonterra’s chief operating officer Anna Palairet. “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.”
Fonterra estimates that the two new electrode boilers will help reduce emissions at the site by approximately 72,800 tonnes of CO2e annually. This reduction will contribute 4% toward its target of achieving a 50.4% absolute reduction of direct and indirect greenhouse gas (GHG) emissions by 2030 from a 2018 baseline.
“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,” said general manager operations – Lower South Island, Andrew John. “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 project is co-funded by New Zealand’s government as part of an Energy Efficiency and Conservation Authority (EECA) partnership. Fontarra is investing a total of $790m, with the government contributing $90m through its Government Investment in Decarbonising Industry (GIDI) fund.
“The project is a positive step toward enhancing productivity, building resilient infrastructure, and ensuring long-term operational sustainability,” said EECA chief executive, Dr Marcos Pelenur. “This project supports greater energy security while laying the foundation for future growth and adaptability.”
The co-op expects the new boilers to be operational by August 2027, with construction due to begin shortly.
