Fonterra Signs Solar Deals to Reduce Coal Dependency
This week, New Zealand’s dairy leader, Fonterra, entered into long-term renewable energy power purchase agreements aimed at reducing its reliance on coal for boiler operations. The Fonterra Cooperative, renowned as the largest exporter of dairy products globally, is making significant strides in transitioning away from traditional coal usage towards cleaner energy alternatives.
Having already eliminated coal usage at its locations on the North Island, Fonterra is now extending its efforts to the South Island. The recent agreements involve two virtual power purchase agreements (PPAs) that will help support the financial viability of two new solar initiatives: the 42 megawatt (MW) Somerton solar farm and the 129 MW Darfield solar and battery project, both situated in Canterbury on the South Island.
Commitment to Sustainable Energy
Fonterra has set an ambitious target to completely phase out coal as an energy source by the year 2037. The CEO, Anna Palairet, highlighted the suitability of solar energy for the cooperative’s operations, noting that electricity generation aligns effectively with the peak seasons for milk production. She expressed that these agreements not only facilitate the introduction of new energy generation but also provide assurance of long-term pricing.
Palairet emphasised Fonterra’s commitment to forging a sustainable future while contributing to the development of new renewable energy resources in New Zealand.
Details of the Solar Projects
The Somerton solar facility, developed by Anza Power, is projected to produce around 65,000 megawatt-hours (MWh) of renewable energy each year, conveniently located near Fonterra’s manufacturing sites in Darfield and Clandeboye. Anza aims to have this project operational by early 2028.
The Darfield agreement, established with NZ Clean Energy (NZCE), a company within the Foresight portfolio, marks a significant milestone as one of New Zealand’s pioneering large-scale solar power purchase agreements involving a major industrial energy consumer partnering with an independent renewable energy developer.
Reducing Emissions at Existing Sites
In furthering its sustainability initiatives, Fonterra has already replaced a coal boiler at its Edendale facility in the South Island with an innovative electrode boiler, projected to reduce emissions by approximately 20 per cent each year. The new system generates 30 MW of thermal energy using electricity, and plans are underway to install two additional electrode boilers at the Edendale site by 2027.
Additionally, Fonterra is converting two boilers at its Clandeboye site to utilise wood pellets as part of its strategy to embrace green energy solutions.
