Fonterra is on track to complete the conversion of two coal-fired boilers to wood pellets at its Clandeboye milk processing site in South Canterbury by September. This $64 million project is part of the co-op’s commitment to phasing out coal entirely from all its processing sites by 2037, in response to tightening coal supplies and environmental concerns.
The upgrade at the Clandeboye site near Timaru is expected to reduce manufacturing emissions by 9%, equivalent to 155,000 tonnes of CO2e per year. This is comparable to taking over 64,000 cars off the road annually, contributing to a significant decrease in greenhouse gas emissions.
The project involves dismantling old fuel infrastructure and installing new equipment for wood pellet operations, including fuel conveying systems and filtration systems to improve air quality. Fonterra has also focused on enhancing the working environment by building a new control room and refurbishing existing facilities.
Conrad Harle, operations manager at Clandeboye, highlighted the positive impact of the project on the local economy, as contractors from across the South Island are involved in the construction and conversion phases. This investment not only supports renewable energy alternatives but also aligns with Fonterra’s sustainability goals.
Linda Mulvihill, Fonterra’s energy and climate manager, emphasized the importance of transitioning away from coal to support regional decarbonisation efforts. The shift to wood pellets at Clandeboye sets a precedent for the industry and promotes fuel diversity in the South Island, encouraging the development of wood pellet supply chains nationwide.
While the conversion of Clandeboye’s remaining boilers and other South Island sites into renewable energy is pending, Fonterra aims to reduce absolute scope one and two emissions by 50.4% by 2030. This ongoing commitment to sustainability underscores the co-op’s dedication to environmental stewardship and carbon reduction initiatives.
tim.cronshaw@alliedpress.co.nz
