Fonterra Co-operative Group is striding towards its climate goals and operational resilience, with $150 million in electrification investments planned across New Zealand’s North Island over the next 18 months.
The co-operative launched its Climate Roadmap in November 2023, which outlined its targets of a 50.4 per cent absolute reduction of Scope 1 & 2 GHG emissions by 2030 from a 2018 baseline. Fonterra's sustainability update in November 2024 outlined a range of milestones hit over the previous 12 months, including making its North Island manufacturing entirely coal free.
In 2025, Fonterra stated it aims to build enduring, cost-efficient assets while enhancing energy security across its manufacturing operations and ensuring a sustainable energy supply.
Investments into electric boilers at the co-operative's Whareroa, Edgecumbe and Waitoa sites, along with further fleet decarbonisation, marks further steps in renewable energy supporting sustainability targets while future-proofing operations.
Fonterra COO, Anna Palairet, said the investments are a significant step for the co-operative's future operations.
“These investments are the next step in creating enduring assets that are fit for the future, as we look to reduce our reliance on gas,” said Palairet.
“Choosing the right energy solutions is about striking a balance between affordability, security of energy supply and reducing our environmental footprint, and the new electric boilers are crucial to navigating this challenge.”
Investments announced include:
- Whareroa: The site will undergo a staged energy transformation with the first stage including the installation of two electrode boilers. The $64 million investment is expected to reduce the site's annual emissions by an estimated 51,000 tonnes – the equivalent of removing around 21,000 cars from New Zealand roads – and contribute a 3 per cent reduction towards Fonterra’s 2030 target.
- Edgecumbe: The site will transition from the use of steam and electricity generated through a cogeneration plant, to a reliable source of renewable energy with the installation of a new electrode boiler. The $57 million investment is expected to reduce the site’s annual emissions by an estimated 28,000 tonnes, contribute a 1.5 per cent reduction towards Fonterra’s 2030 target, and reduce the Co-op’s overall natural gas reliance by approximately 8 per cent.
- Waitoa and Waitoa UHT: Following the closure of its last coal boiler in November 2024, the co-op is investing a further $18 million in installing two Resistive Element Boilers to boost heat production, while providing a secure and reliable energy source allowing for future growth in UHT processing.
- Fleet decarbonisation: The next step in looking for more economical solutions for the future includes a pilot of six EV tankers and associated infrastructure later in the year, expected to provide an approximately 60 per cent annual reduction in fuel costs per tanker, along with environmental benefits.
