Fonterra will convert its coal boilers at its Hautapu site to wood pellets and install a heat pump at its Palmerston North milk processing site that supplies the local market. Both projects have recieved support from the Government Investment in Decarbonising Industry (GIDI) Process Heat Contestable Fund. Once complete in early 2024 the Hautapu site will reduce our carbon emissions by a forecast 15,785 tonnes per annum – the equivalent of taking about 6,500 cars off New Zealand’s roads.
The heat pump at the Palmerston North site will convert wasted heat from the refrigeration system into a heat source. This will reduce the amount of natural gas needed for process heat. The site will also generate additional heat via a solar thermal plant. Fonterra is receiving up to $2.5million in co-funding to complete the work at Hautapu and $425,000 for the Palmerston North site project.