Tuesday, March 19, 2024

Fonterra advances coal dumping

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Fonterra will stop installing coal boilers at its processing plants, 11 years sooner than planned.
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The co-operative says its sustainability targets include cutting emissions by 30% across all plants by 2030 and achieving net zero by 2050, reducing water use by 20% by 2020, having a tailored farm environment plan for every supply farm by 2025, using100% recyclable, reusable and compostable packaging by 2025 and powering its Stirling, Otago, site with electricity rather than coal.

Fonterra has immediately put a stop to installing new coal boilers or increasing capacity to burn coal, global operations chief operating officer Robert Spurway said.

“One of the emerging themes in our strategy review is that sustainability will be at the heart of everything we do. 

“As part of this we want to step up our efforts to help New Zealand transition to a zero-carbon economy,” Spurway said.

“Our farmer owners are already some of the most efficient producers of milk in the world. We need to match them in making sure our manufacturing operations and wider supply chain are as efficient as possible.

“Transitioning Fonterra’s sites away from coal requires a staged approach. We’re determined to go as fast as we can but there are a number of practical challenges we have to overcome.

NZ’s energy infrastructure in some places isn’t set up to handle Fonterra’s needs, either because there are no alternatives available or, if there are, they are not at the scale needed, he said.

“There are also cost challenges. 

“Transitioning to cleaner fuels will require additional investment and we need to balance this with remaining competitive. It’s right to take a staged approach.”

Climate Change Minister James Shaw said “To have this commitment from Fonterra, on top of the recent commitment by them and other primary sector organisations to farm-level emissions pricing, shows that business and Government working together can result in serious action to tackle climate change. 

“Fonterra is one of the largest users of coal in NZ after the Huntly power station so moving to immediately stop installing new coal boilers and start to convert existing boilers to renewable energy sources is a great step.”

Energy and Resources Minister Megan Woods said “Fonterra’s commitment not to install any new coal boilers or increase its capacity to burn coal shows real leadership and acknowledges that industry has a major role to play in helping NZ reap the rewards from becoming a clean, green, carbon-neutral economy.”

Fonterra has 32 manufacturing sites and about 40% of its processing energy comes from coal. The rest is from natural gas, electricity and wood.

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