Fonterra invests a further $70m to move away from coal
At the official opening of the first electrode boiler at its Edendale site on 7 May 2025, Fonterra announced further plans to progress decarbonisation at its Southernmost site.
The Co-operative will invest a further $70 million in two new electrode boilers as it moves away from using coal while securing renewable energy solutions to futureproof its sites.
Minister for Climate Change and Energy Simon Watts, who officially opened the existing plant alongside Fonterra Chief Operating Officer Anna Palairet, congratulated Fonterra on these next steps.
“The private sector has a leading role to play in increasing clean energy and meeting New Zealand’s emissions targets. I am thrilled to see Fonterra building their renewable energy capacity and getting one step closer to meeting their decarbonisation goals.”
The two new electrode boilers will replace two existing coal-fired boilers, providing renewable energy to support milk processing and future growth at the site including additional power and steam heat capacity for the new UHT plant currently being built.
Fonterra’s Anna Palairet says the investment is a key step in strengthening operations at Edendale.
“Investing in renewable energy solutions, such as electrode boilers, will help ensure we can continue to process milk efficiently both now and in the future. Securing a reliable energy supply is critical to the resilience of our operations, and this investment will help futureproof Edendale for years to come.”
The investment also supports Fonterra’s broader decarbonisation and emissions reduction targets.* Once the two new electrode boilers are complete, it is expected emissions at the site will be reduced by approximately 72,800 tonnes of CO2e annually. This is forecast to result in an approximate 4% reduction** towards Fonterra’s overall 2030 Scope 1 and 2 GHG emissions reduction target.
General Manager Operations – Lower South Island Andrew Johns said it was an exciting time for the site, with major investments shaping Edendale’s future.
“With the new UHT plant coming online in 2026, the recently installed electrode boiler and now two more electrode boilers on the way, there’s a real sense of progress here at Edendale.”
The investment is co-funded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership.
Construction is set to commence shortly, with the new boilers expected to be operational by August 2027.
*The Co-operative’s target is 50.4% absolute reduction of Scope 1 & 2 GHG emissions by 2030 from a 2018 baseline.
** From a 2018 baseline.
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