Distributed Energy Resources, Energy Efficiency, GHG Emissions, Industrial  -  February 19, 2025

Fonterra Sets Electrification Plans

Dairy cooperative Fonterra announced its plans to invest in several electrification projects.

The cooperative is taking another significant step toward its climate goals and operational resilience by investing $150 million in electrification projects across the North Island in New Zealand over the next 18 months.  

The investments into electric boilers at the cooperative's Whareroa, Edgecumbe and Waitoa sites along with further fleet decarbonization support the cooperative’s sustainability targets while improving its operations.

Fonterra’s Chief Operating Officer Anna Palairet says the investments are a significant step for the cooperative's future operations.

“Last year we turned off the last coal boiler in the North Island, meaning manufacturing operations in the North Island are now coal-free,” she said in a statement. “These investments are the next step in creating enduring assets that are fit for the future as we look to reduce our 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 investments announced are:

Whareroa: The site will undergo an 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 tons and contribute a 3% reduction toward 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 cogeneration 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 tons and contribute a 1.5% reduction toward Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction target and reduce the cooperative’s overall natural gas reliance by approximately 8%. 

Waitoa and Waitoa UHT: Following the closure of its last coal boiler in November 2024, another $18 million will be invested 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 decarbonization: The next step includes a pilot of six EV tankers and associated infrastructure later in the year, which are expected to provide an approximately 60% annual reduction in fuel costs per tanker.

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