Fonterra working towards net zero emissions target
AUCKLAND: Electricity is probably Fonterra’s best longterm energy option, but the company says it will need a combination of fuels at its sites as it works towards its 2050 net zero emissions target.
New Zealand’s biggest exporter operates 30 plants nationally and is a major user of gas and coal for drying milk powder.
It expects to start running its Brightwater plant near Nelson on a mix of coal and wood chip next month. In August, it announced plans to convert the boiler fuel at its cheese plant at Stirling, in South Otago, from coal to electricity.
Global operations chief operating officer Robert Spurway said Fonterra was serious about meeting its 2050 target.
Getting there would involve combinations of fuels and incremental changes as new capacity was added or old plant replaced. The choices available would vary regionally and would need to evolve over time as the cost of renewables came down, he said.
Energy efficiency gains also remained key.
In the North Island, where the company has more fuel options, the company would probably like to move away from coal sooner rather than later. But whether that would require gas to play a transitional role at those three sites was hard to assess now.
‘‘If we can jump straight to full renewables without gas, we will,’’ Mr Spurway said.
‘‘Electricity is probably the most sustainable option for thermal heat over time.’’
Electrification of transport and heavy industry, alongside largescale afforestation, will be key planks of New Zealand’s efforts to meet its 2050 target netzero emissions, the Pro ductivity Commission reported in August.
But Mr Spurway said electrification of the firm’s biggest sites was not a shortterm option. Changing Fonterra’s Edendale plant to electricity would have increased the site’s operating costs by about 50% and would have required an investment from Fonterra of about $160 million in upgrading the supply to the site.
Stirling was selected for the company’s electrode boiler trial because the OtagoNet grid could absorb it without a major upgrade, Mr Spurway said. The change, now in detailed design work, would also make a meaningful contribution to the firm’s emissions reduction by displacing about 9700 tonnes of coal annually.
As part of its sustainability target, Fonterra has committed to getting its 2030 emissions 30% below a 2015 baseline.
Mr Spurway said energy efficiency would also be a core focus in the next 10 to 15 years.
Fonterra’s starting point for any plant expansion was whether it could be achieved without increasing onsite energy demand.
The installation of new water treatment capacity, a new milk protein concentrate plant, and an anhydrous milk fat plant at Edendale in 2015 had been achieved within the site’s existing energy load. — BusinessDesk