Multinational dairy company Fonterra officially opened its first electrode boiler at its site in Edendale, New Zealand, last month, and further plans to progress decarbonisation at its southern-most site have been outlined.

The cooperative will invest a further $70-million in two new electrode boilers as it moves away from using coal while securing renewable-energy solutions to futureproof its sites.

New Zealand Climate Change and Energy Minister Simon Watts, who officially opened the existing plant alongside Fonterra COO Anna Palairet, congratulated Fonterra 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 [its] renewable-energy capacity and getting one step closer to meeting [its] decarbonisation goals.”

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 ultrahigh-temperature (UHT) plant currently being built.

Palairet says the investment is a key step in strengthening operations at Edendale.

“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 futureproof 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 around 72 800 t of CO2-equivalent emissions each year, the equivalent of removing over 30 000 cars from New Zealand roads. This is forecast to result in a near 4% contribution towards Fonterra’s overall 2030 Scope 1 and 2 greenhouse-gas (GHG) emissions reduction target.

Fonterra Lower South Island operations GM Andrew Johns says it is an exciting time for the site, with major investments shaping Edendale’s future.

“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 in the southernmost region of New Zealand’s South Island and wider New Zealand to be part of the team on site delivering this investment.”

The investment is cofunded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership.

EECA CE Dr Marcos Pelenur believes that “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”.

Construction is set to start shortly, with the new boilers expected to be operational by August 2027.

The cooperative’s target is 50.4% absolute reduction in Scope 1 and 2 GHG emissions by 2030 from a 2018 baseline.