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Oct 03, 2023

Fonterra Hautapu coal boilers ditched for more carbon friendly option

Share this article The Hautapu Fonterra Dairy Factory. Photo / Christine Cornege

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The Hautapu Fonterra Dairy Factory. Photo / Christine Cornege

Fonterra is continuing work to decarbonise its operations as the cooperative announces its Hautapu site will convert from coal-fired boilers to wood pellets as fuel.

Once complete early next year, the Hautapu site will reduce Fonterra's carbon emissions by a forecast of 15,785 tonnes per year - This is the equivalent of taking about 6500 cars off New Zealand's roads.

Meanwhile, further south at the Palmerston North milk processing site, Fonterra will install a solar thermal plant and special heat pump which converts wasted heat from the refrigeration system into a heat source to reduce the amount of natural gas needed for process heat.

Fonterra chief operating officer Fraser Whineray says the co-operative is commercially focused on reducing emissions.

"There are a number of solutions we’re using to decarbonise our operations and these two projects are a good example of different technologies available," Whineray says.

The Hautapu and Palmerston North projects both received support from the Government Investment in Decarbonising Industry (GIDI) Process Heat Contestable Fund: Up to $2.5million for the Hautapu and $425,000 for the Palmerston North site project.

Whineray says the GIDI co-funding will help Fonterra to progress two emission reduction projects ahead of time.

"It will help us continue to make progress towards our target of reducing emissions by 30 per cent across all our manufacturing operations by 2030 (from a 2018 baseline), on the way to net zero by 2050, and transition out of coal by 2037.″

Other projects underway to decarbonise the Fonterra business include the installation of wood biomass boilers at the Waitoa and Stirling sites.

The new Waitoa wood biomass boiler, due to be operational in November, will reduce the site's annual carbon emissions by approximately 48,000 tonnes, the equivalent of taking approximately 20,000 cars off New Zealand's roads.

Meanwhile, Fonterra is looking to leave its offices in Hamilton's London Street. Stuff reported that Fonterra is planning to move to smaller premises because the company noticed an increase in employees wanting to work from home.

The co-op and its legacy companies including New Zealand Dairy Group occupied the building since the late 1960s. Fonterra is looking at options for new offices all over Waikato but hasn't decided on a new location yet. The move is planned for the end of 2026.

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