Reducing Manufacturing Site’s Carbon Emissions

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Fonterra has introduced a pioneering hybrid emissions reduction solution in its Palmerston North manufacturing site. This initiative involves the deployment of a cutting-edge high-temperature heat pump and solar thermal plant combination.

It converts surplus heat from chillers and compressors into a valuable heat source. The heat pump significantly reduces the site's natural gas consumption. As a result, it is anticipated to eliminate 495 tonnes of CO2e annually, equivalent to the emissions reduction achieved by removing 140 cars from the road each year.

This development marks the fourth site within a year to upgrade its energy infrastructure, aligning with Fonterra's commitment to achieving a 50 percent reduction in scope 1 and 2 emissions by 2030, based on a 2018 baseline. Graham Thomson, Site Manager at Fonterra Palmerston North, shared his enthusiasm for the project's unique approach and said he was excited about the impact of this innovative combination of a commercial heat pump and solar thermal plant on the Palmerston North site's gas consumption and emissions output.

The project received co-funding from the Energy Efficiency Conservation Authority's Government Investment in Decarbonising Industry (GIDI) fund and is expected to serve as a valuable blueprint for future decarbonisation initiatives at Fonterra.

In addition to this initiative, Fonterra is actively pursuing further emissions reduction through energy efficiency initiatives and fuel switching at its six manufacturing sites still reliant on coal. The conversion of coal boilers at the Hautapu site to wood pellets, set to be completed this year, is projected to decrease carbon emissions by 15,785 tonnes annually.

Similarly, its commissioning of the Stirling wood biomass boiler has enabled the site to transition to fully renewable thermal energy, resulting in an annual emissions reduction of 18,500 tonnes. The new Waitoa wood biomass boiler is also expected to reduce carbon emissions at the site by approximately 48,000 tonnes annually, equivalent to removing approximately 20,000 cars from New Zealand's roads.