New Zealand dairy giant signs two major solar deals as it works to wean itself off coal boilers

New Zealand dairy giant Fonterra has this week signed long-term renewable energy power purchase agreements with two new solar projects as part of its efforts to wean itself off the use of coal power for boilers.

The Fonterra Cooperative is the world’s largest exporter of dairy products, and has been steadily replacing its traditional coal boilers with a variety of cleaner energy sources. It has already successfully stepped away from coal at all its sites on the North Island and is doing the same on the South Island.

This week it signed two virtual PPAs that will underpin the economics for two new solar projects, the 42 megawatt (MW) Somerton solar farm and the 129 MW Darfield solar and battery project, both in Canterbury on the South Island.

Fonterra’s current goal is to phase out coal as an energy source by 2037.

“Solar is a good fit for our operations, with generation aligning well to the peak of the milk season. This agreement helps bring new generation to market while at the same time giving us long term price certainty,” said Anna Palairet, Fonterra CEO.