Fonterra furthers decarbonisation strategy by switching to wood at Waikato
New Zealand's Fonterra (FCG.NZ) said on Friday it would convert coal boilers at its Hautapu site in Waikato to wood pellets and install a heat pump at its Palmerston North milk processing site to supply to the local market, as part of its decarbonisation strategy.
Once complete in early 2024, the Hautapu site will reduce carbon emissions by a forecast 15,785 tonnes per annum, the company said in a statement.
The world's largest milk cooperative had announced a strategic partnership in February, in an effort to reduce carbon dioxide emissions using climate-friendly heat pump technology for steam generation.
"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," Fonterra Chief Operating Officer Fraser Whineray said.
The company is receiving NZ$2.5 million ($1.54 million) in co-funding to complete the work at Hautapu and NZ$425,000 for the Palmerston North site project from a government fund.
These projects are just two of many underway to decarbonise the Fonterra business. The company's Waitoa and Stirling sites are in the process of installing wood biomass boilers to exit coal.