Fonterra invests US$150M in electrification projects to reduce emissions

NEW ZEALAND – Fonterra has announced a US$150 million investment in electrification projects across New Zealand’s North Island over the next 18 months, reinforcing its commitment to sustainability and energy security. 

The initiative is expected to reduce reliance on fossil fuels by upgrading energy infrastructure at key sites and decarbonizing its fleet.

The investment will see the installation of electric boilers at the Whareroa, Edgecumbe, and Waitoa sites, marking a significant step toward the Co-operative’s long-term climate goals. 

Fonterra’s Chief Operating Officer, Anna Palairet, highlighted the importance of these changes, stating that the projects are central to ensuring a more sustainable future.

“With the phasing out of coal boilers last year, our next step is reducing gas dependency with energy solutions that are not only sustainable but also affordable and reliable,” she said.

At the Whareroa site, US$64 million has been allocated to install two electrode boilers, expected to cut annual emissions by an estimated 51,000 tonnes. 

Edgecumbe will receive a US$57 million investment to transition to renewable energy, projected to lower emissions by 28,000 tonnes annually. 

Following the closure of its last coal boiler, Waitoa will see an additional US$18 million spent on two Resistive Element Boilers, which will improve heat production and energy reliability.

In addition to these infrastructure upgrades, Fonterra is also taking steps to decarbonize its fleet by introducing six electric tankers. 

The company expects the move to contribute to a significant reduction in fuel costs while supporting environmental conservation efforts.

Fonterra has set a target to reduce its Scope 1 and 2 greenhouse gas emissions by 50.4% by 2030 from a 2018 baseline. 

A report by the company outlines that these investments align with its broader strategy of balancing affordability, security, and environmental responsibility. 

The Co-operative, owned by thousands of farming families across New Zealand, remains committed to delivering high-quality dairy products while prioritizing sustainability.

“This investment is not just about meeting climate goals; it’s about ensuring the long-term viability of our operations while delivering value to our farmers and customers,” Palairet said.