Acting chief operating officer Anna Palairet said the $36million investment in the 20-megawatt electrode boiler was another step the co-operative was taking to get out of coal by 2037.
The boiler would reduce the Edendale site’s emissions by about 20%, or 47,500 tonnes of CO2 emissions per annum.
"The equivalent of taking almost 20,000 cars off New Zealand roads."
The work would reduce Fonterra’s overall carbon emissions from its 2018 baseline in New Zealand by nearly 3% per annum once operational in the 2025 financial year.
Fonterra considered many energy options before deciding on the electrode boiler, she said.
"Fonterra has a complex manufacturing operation spanning the country. As technologies develop, it’s important we continually assess which energy source and technology is best for each site.
Up to 15million litres of milk were processed at the Edendale site each day, she said.
"We need to ensure we have a secure energy supply that can meet processing demands.
"Cost is also an important consideration. Getting out of coal requires significant investment and we need to choose the best option that reduces emissions and operational complexity while also doing what’s best for our farmer shareholders."