Genesis Energy inks deal with Fonterra for biomass use

They plan to use biomass as an alternative fuel source for coal.

New Zealand-based Genesis Energy signed a Biomass Collaboration Agreement with Fonterra to look into the use of biomass to replace coal as well as the local supply chain potential.

In a statement, Genesis Energy said the biomass agreement will help the companies decarbonise and reduce New Zealand’s carbon emissions.

The agreement will initially run for a period of two years. Aside from collaborating to share knowledge and for innovation, the project will also look into tapping other industry partners.

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Genesis is firing coal to generate electricity for the Huntly Power Station, whilst Fonterra uses coal to create heat for dairy processing.

The energy firm aims to cut 1.2 million tonnes of annual carbon emissions by 2025 from a 2020 base year. The target also includes reducing generation emissions by 36%. 

Fonterra, meanwhile, targets to reach net zero by 2050 and reduce manufacturing emissions by 30% by 2030 from the 2018 baseline. It also plans to get out of coal by 2037.