New Zealand dairy giant Fonterra announced plans to phase out coal use at its Stirling plant in Otago. The cheese plant, which plans to be coal free by August next year, will replace coal with wood biomass and become Fonterra’s first 100% renewable thermal energy site.
Fonterra plans to replicate the initiative, having set the goal of getting out of coal altogether by 2037.
The co-operative says that switching to wood biomass will cut the site’s annual emissions by 18,500 tonnes of CO2.
Fonterra general manager (Operations, Lower South Island), Richard Gray says it’s another huge decarbonisation milestone for the co-op.
“Sustainability is at the heart of our strategy, and this project is something that will be good for the environment and local community.
“As well as the site being coal-free there are additional environmental benefits the new boiler will bring, including a reduction in wastewater, noise, solid waste to landfill and air discharge emissions.
“There are also economic benefits for the community – the installation will contribute more than NZ$10m into the region, along with supporting an estimated 10 jobs in the wood biomass industry.”
“Our Stirling site exports to customers in more than 10 countries, including Japan and South Korea, and we’re looking forward to sharing this news with them also.”
The wood biomass will be sourced via Pioneer Energy owned by Central Lakes Trust.
Pioneer Energy CEO, Fraser Jonker said: “Pioneer Energy is very proud to be involved with, and to support, Fonterra’s move across from coal to biomass at their facility in Stirling.
“Pioneer Energy has a proven record for the installation of new, and conversion of existing, boilers to biomass, and with our own wood fuel division assuring quality and security of local supply for the fuel, have mitigated any perceived risk of making this very important transition to a low carbon future.”
Fonterra has undertaken two other fuel-switching projects over the past three years at its Te Awamutu and Brightwater sites. The former’s conversion to wood pellets has resulted in a 10% reduction in the co-op’s coal use. The co-operative estimates that these projects, coupled with its energy efficiency work will reduce its emissions by 135,000 tonnes.
Fonterra says the conversions will continue given that eight out of its 29 sites are still using coal.
