Dairy company Fonterra has recently announced plans to convert two of its gas boilers on the North Island to electric power, which will result in a reduction of approximately 38% in its overall fossil gas consumption.
The boiler conversions will take place at Fonterra’s Edgecumbe and Whareroa sites in Taranaki, with the most substantial emissions reductions anticipated from the Whareroa conversion.
The initial phase of the project aims to decrease the dairy company’s gas usage by 25%. The complete conversion of the facilities is anticipated to take several years to finalise.
“We’d always planned to move away from gas, so if anything, this just probably accelerated some of those plans,” Fonterra’s engineering, technical, and sustainability head Chris Kane said, explaining how the company had already intended to phase out gas, but the country’s swiftly diminishing gas reserves accelerated its electrification initiatives.
The primary contributor to greenhouse gas emissions from dairy comes from methane released when cows burp. The dairy exporter has committed to reducing these emissions by 30% per kilogram of product by 2030.
The largest source of direct emissions from Fonterra’s operations, excluding farm activities, is its milk-drying boilers, which are responsible for producing powder for export and other ingredients.
Last year, Fonterra announced a $64 million conversion initiative from two coal boilers to wood pellets at its Clandeboye site in South Canterbury. This initiative is projected to reduce the business’ overall emissions by 9%, equating to a decrease of 155,000 tonnes of carbon dioxide equivalent annually.
By the conclusion of 2027, Kane indicated that direct emissions (excluding those from farms) would be reduced by 33%.
He also mentioned that the Darfield coal boilers would be the last to undergo conversion, as they are the most recently installed.
Fonterra has committed to phasing out coal by 2037. Engineering, technical, and sustainability head Kane indicated that the company is currently on track to eliminate most coal use by the early 2030s.