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Fonterra announces next steps in move out of coal
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Monday, 12 May, 2025, 08 : 00 AM [IST]
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New Zealand
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As Fonterra officially opened the first electrode boiler at its Edendale site, it announced further plans to progress decarbonisation at its Southern most site. The co-operative will invest a further $70 million in two new electrode boilers as it moves away from using coal while securing renewable energy solutions to future-proof its sites.
Minister for Climate Change and Energy, Simon Watts, who officially opened the existing plant alongside the chief operating officer Anna Palairet, congratulated the company on these next steps.?
“The private sector has a leading role to play in increasing clean energy and meeting New Zealand’s emissions targets. I am thrilled to see Fonterra building their renewable energy capacity and getting one step closer to meeting their decarbonisation goals,” said Palairet.?
The two new electrode boilers will replace two existing coal-fired boilers, providing renewable energy to support milk processing and future growth at the site including additional power and steam heat capacity for the new UHT plant currently being built.?
Palairet said, "Investing in renewable energy solutions, such as electrode boilers, will help ensure we can continue 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."??
The investment also supports Fonterra’s broader decarbonisation and emissions reduction targets.? 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. This is forecast to result in an approximate 4%?reduction towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction target.
Andrew Johns, general manager operations – Lower South Island, says it’s an exciting time for the site, with major investments shaping Edendale’s future. He 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 here 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.”?
The investment is co-funded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership. Dr Marcos Pelenur, EECA chief executive, said, “The project is a positive step toward enhancing productivity, building resilient infrastructure, and ensuring long-term operational sustainability. This project supports greater energy security while laying the foundation for future growth and adaptability.”
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