Fonterra's electrification projects to help improve sustainability

Fonterra is investing NZ$150 million in electrification projects across the North Island of New Zealand over the next 18 months in an effort to reach its sustainability targets* while future-proofing its operations.

The investments include electric boilers at the Co-operative’s Whareroa, Edgecumbe and Waitoa sites, along with further fleet decarbonisation, which are aimed at enhancing energy security across its manufacturing operations.

Fonterra’s Chief Operating Officer, Anna Palairet, said its manufacturing operations across the North Island are now coal-free and these investments are the next step in its plans to reduce its reliance on gas.

“Choosing the right energy solutions is about striking a balance between affordability, security of energy supply and reducing our environmental footprint, and the new electric boilers are crucial to navigating this challenge.”

The details of the investments are as follows:

Whareroa: The site will undergo a staged energy transformation with the first stage including the installation of two electrode boilers. The $64 million investment is expected to reduce the site’s annual emissions by an estimated 51,000 tonnes and contribute a 3% reduction** towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction target.

Edgecumbe: The site will transition from the use of steam and electricity generated through a co-generation plant, to a reliable source of renewable energy with the installation of a new electrode boiler. The $57 million investment is expected to reduce the site’s annual emissions by an estimated 28,000 tonnes and contribute a 1.5% reduction** towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction target, and reduce the Co-op’s overall natural gas reliance by approximately 8%***.

Waitoa and Waitoa UHT: Following the closure of its last coal boiler in November 2024, the Co-op is investing a further $18 million in installing two Resistive Element Boilers to boost heat production, while providing a secure and reliable energy source allowing for future growth in UHT processing.

Fleet decarbonisation: The next step in looking for more economical solutions for the future includes a pilot of six EV tankers and associated infrastructure later in the year, expected to provide an approximately 60% annual reduction in fuel costs per tanker, along with environmental benefits.

_{*The Co-operative’s target is 50.4% absolute reduction of Scope 1 & 2 GHG emissions by 2030 from a 2018 baseline.}

_{**From a 2018 baseline.}

_{***An approximate 8% reduction from the Co-op’s average annual natural gas usage from FY23 and FY24.}