Government welcomes Fonterra’s boiler move

31 Jan 2020, 10:33 by New Zealand Government

A move by Fonterra to end its use of coal at its Te Awamutu site and use wood pellets to fuel its boiler illustrates how industry can play a major role in decarbonising the economy, says Energy and Resources Minister Megan Woods.

The Government earlier this week announced it will fund clean-power sources, beginning with naming two hospitals and eight schools as part of the New Zealand Upgrade Programme.

“It’s encouraging to see Government and industry moving in the same direction. Fonterra’s announcement demonstrates leadership from industry in their efforts to reduce their carbon emissions,” said Megan Woods.

“Fonterra is a big user of coal and this change to a wood pellet boiler starting in the 2020/21 season will reduce its coal consumption by around 10 per cent.

“The move follows on from Fonterra’s commitment last year not to install any new coal boilers and Synlait’s recent commissioning of the country’s first large-scale electrode boiler at its Dunsandel site.

“The Government has been working with large energy users to encourage them to use less coal or switch to lower-emission energy sources. Fonterra had recently received $200,000 from EECA’s technology demonstration programme.

“We want to see industry use renewable fuels rather than fossil fuels and we’re currently consulting on options to encourage energy efficiency and switch to renewable energy sources.

“Fonterra’s latest move shows the leadership required to transition away from fossil fuels and onto renewable sources of energy for industrial heat and we encourage others to make the move,” said Megan Woods.