New electrode boiler to keep coal away

The electrode boiler will reduce the Edendale site's emissions by around 20% or 47,500 tonnes of carbon dioxide equivalent per annum - the equivalent of taking almost 20,000 cars off NZ roads.

It will also help reduce Fonterra's overall carbon emissions from its NZ 2018 baseline by nearly 3% per annum once operational in 2025-26.

Fonterra says the investment is another step for the co-operative as it works to get out of coal by 2037 and reduce Scope 1 and 2 emissions by 50% by 2030 (from 2018 baseline).

Fonterra acting chief operating officer Anna Palairet says the team considered a number of energy options before deciding on the electrode boiler.

"Fonterra has a complex manufacturing operation spanning the country.

"As technologies develop, it's important we continually assess which energy source and technology is best for each site.

"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 is also an important consideration.

Palairet says getting out of coal requires significant investment and the co-op needs to choose the best option that reduces emissions and operational complexity while also doing what's best for farmer shareholders.

Fonterra is partnering with Meridian Energy for the electricity supply who generate electricity from 100% renewable resources - wind, water, and sun.