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Fonterra will stop using coal to fuel the milk processing boiler at its Te Awamutu dairy plant next season.
The site will switch from using coal at the end of this season and start powering the boiler with wood pellets.
The move was another step towards the co-op's commitment to renewable energy, Kelvin Wickham, CEO for AMENA at Fonterra told The Country Early Edition's Rowena Duncum.
"Something like 84,000 tonnes of carbon emissions every year will be reduced by making that move. They tell me that's something like 30,000 cars off the road" said Wickham.
Taupo-based company Nature's Flame will supply the pellets which are made from sustainable wood fibre residues from the surrounding areas.
Last year, Fonterra announced a series of environmental targets relating to its coal use, manufacturing emissions and water efficiency, packaging and farm environment plans.
Listen below:
Wickham said Fonterra was aiming to reduce emissions by 30 per cent across all of its manufacturing sites by 2030, (on the way to net zero by 2050), and to improve the energy intensity of sites by 20 per cent.
"No more coal boilers" was an integral part of Fonterra's sustainability strategy said Wickham.
"We are serious about meeting these targets. We know these changes don't happen overnight, but we're moving in that right direction".
Also in today's interview: Wickham reports on other Fonterra sites reducing their reliance on coal and takes a look at how the coronavirus outbreak has impacted the co-op.