Fonterra hits 15 per cent energy reduction target

30 June 2008

Fonterra hits 15 per cent energy reduction target

Fonterra has achieved its second major energy efficiency milestone in five years, cutting the amount of energy used to manufacture its products by 15 percent since the 2002/03 season.

The reduction - which is equivalent to the total annual electricity use of around 100,000 households and will cut carbon emissions by about 230,000 tonnes per annum - comes just two years after the Company announced a 10 per cent reduction in its energy consumption per unit of output. The latest savings represent an additional 5 per cent.

Fonterra's Director of Group Manufacturing and Supply Chain Gary Romano attributes the programme's success to a combination of capital investment in energy-saving initiatives and working smarter.

"We have continued to invest in technology to improve our energy efficiency at a site level, particularly in the heat recovery area, together with progressing our drive for greater process efficiencies across our operations."

Mr Romano says rising energy prices provided further impetus to the energy efficiency drive, with a direct payback in reduced energy costs and also environmental benefits in the company's carbon footprint across its manufacturing operations.

"Our energy story is a win-win. Not only does it help us to deliver on our strategic commitment to be one of the most efficient dairy producers in the world, but it is also helping us achieve our sustainability goals with improved environmental outcomes," he says.

Mr Romano says there will be an ongoing focus on driving savings in every area of Fonterra's business.

"It doesn't end here. We're already focussed on achieving our next energy reduction target."

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