Genesis Energy and Fonterra team up to explore biomass coal substitute

In New Zealand, Genesis Energy and Fonterra have signed an agreement to work together on exploring the viability of biomass as a substitute for coal including the potential for a local supply chain.

The two companies have signed a Biomass Collaboration Agreement as they seek an alternative fuel source to help decarbonise their respective businesses and reduce New Zealand’s carbon emissions.

Genesis burns coal to generate electricity at its Huntly Power Station, while Fonterra uses coal to create heat for dairy processing. Genesis’ Interim Chief Executive Tracey Hickman says the agreement details the intention of both parties to further develop their relationship and explore the viability of all aspects of biomass as an alternate fuel source, including a sustainably produced local supply chain.

The agreement comes ahead of Genesis’ trial burn of biomass at Huntly on 14 February, and as Fonterra undertakes its fourth sustainable fuel switching project at plants throughout the country.