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Fonterra Takes the Lead in Energy Management

7 September 2006

Fonterra Takes the Lead in Energy Management

Fonterra’s energy savings for the 2005/06 season represent an 82 per cent contribution to New Zealand businesses’ total reported national energy savings.

According to an Energy Efficiency Conservation Authority (EECA) report, Fonterra’s Energy Reduction Project achieved energy efficiency savings of 1.8 petajoules last year, which is equivalent to saving the amount of electricity used by a city the size of Hamilton (population 159,000).

EECA Chief Executive Heather Staley says Fonterra’s Energy Reduction Project demonstrates leadership in energy management and provides a model for all New Zealand industry.

“The keys to the success of Fonterra’s model include making energy efficiency one of the top five company projects, a commitment to the project by senior management, setting targets, and bringing in outside energy efficiency expertise,” she says.

“The EECA Business team worked alongside Fonterra as it developed and implemented the project, which is aimed at improving efficiencies as well as supporting Fonterra’s core strategy of building a sustainable co-operative.”

Fonterra Director Group Manufacturing Gary Romano says the result builds on the company’s success at the EECA Energywise Awards earlier this year.

“There are great examples of the work being done at a grassroots level by Fonterra to develop manufacturing processes that are both economically and environmentally sustainable.

“In many cases we are partnering with organisations like the EECA, who have helped us achieve an outstanding result for our business and the environment.”

Energy is Fonterra’s third-highest cost after wages and depreciation. The company’s Energy Reduction Project began in 2003, with the aim of reducing energy consumption per unit of production by ten per cent across the company. The project’s success has seen the original target date of 2009 brought forward two years.

Many of Fonterra’s New Zealand manufacturing sites have now exceeded the 10 per cent target, with its Lichfield site reaching 17 per cent. Savings are the result of identifying more efficient ways of working and investing in new, energy-saving plant equipment. Fonterra is planning to invest $20 million of capital in energy efficiency initiatives over the next two years.

ENDS

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