Fonterra to install electrode boiler at Edendale plant in Southland to reduce emissions

Fonterra's Edendale plant in Southland was established in 1881. Photo / Fonterra

Fonterra will install a 20-megawatt electrode boiler at its Edendale site in Southland in the co-op’s next step to get out of coal by 2037.

The forecast $36 million investment will reduce emissions at the plant by about 20 per cent a year – the equivalent of taking almost 20,000 cars off the roads.

Fonterra said the boiler would also reduce its overall carbon emissions from its 2018 baseline by nearly 3 per cent a year once operational in the middle of 2025.

Edendale, established in 1881, is New Zealand’s longest-running dairy manufacturing site.

Fonterra acting chief operating officer Anna Palairet said the team considered several energy options before deciding on the electrode boiler.

“With up to 15 million litres of milk being processed at our Edendale site each day, we need to ensure we have a secure energy supply that can meet processing demands.”

Cost was an important consideration.

“Getting out of coal requires significant investment and we need to choose the best option that reduces emissions and operational complexity while also doing what’s best for our farmer shareholders.”

Fonterra is partnering with Meridian Energy for the electricity supply as its electricity comes from 100 per cent renewable resources.

The electric boiler project

The project is co-funded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership.

The partnership involves Fonterra achieving approximately 2.1 million tonnes of earlier CO2e (carbon dioxide equivalent) reductions by undertaking a range of decarbonisation projects at its manufacturing sites.

Fonterra said it expected to further reduce its emissions through a combination of energy efficiency initiatives and switching fuels at its six manufacturing sites that will still be using coal in 2024.