Fonterra Co-operative Group is investing a further NZ$70 million towards decarbonisation of its Edendale site, building two new electrode boilers to replace its existing coal-fired boilers.
Edendale has been a key focus area for Fonterra, with NZ$150 million invested into construction of a new Ultra High Temperature processing (UHT) cream plant in September 2024, and its first NZ$36 million, 20-megawatt electrode boiler starting up in October last year.
As the co-op works towards its sustainability target, the two new electrode boilers will replace existing coal-fired boilers, providing renewable energy to support milk processing and additional power and steam heat capacity for future growth.
Source: Fonterra
Co-funded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership, the new electrode boilers are expected to be operational by August 2027. The partnership agreement includes the co-op achieving approximately 1.2 million tonnes of CO2 cumulative reductions from its coal reduction activities this decade, enabling it to lift its target from 30 to 50 per cent absolute reduction by 2030.
Fonterra chief operating officer, Anna Palairet, said investing in renewable energy solutions will support the company 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,” said Palairet.
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.
Fonterra general manager operations – Lower South Island, Andrew Johns, said 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 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,” said Johns.
Edendale is not the only site Fonterra is working to decarbonise. Last December, NZ$64 million was invested to convert two coal boilers to wood pellets at its Clandeboye site, and in February it announced NZ$150 million in electrification investments were planned across New Zealand’s North Island.
