{"id":2552402,"date":"2023-07-20T06:30:00","date_gmt":"2023-07-20T10:30:00","guid":{"rendered":"https:\/\/platoai.gbaglobal.org\/platowire\/government-allocates-90-million-to-fonterra-as-part-of-790-million-initiative-to-reduce-coal-usage\/"},"modified":"2023-07-20T06:30:00","modified_gmt":"2023-07-20T10:30:00","slug":"government-allocates-90-million-to-fonterra-as-part-of-790-million-initiative-to-reduce-coal-usage","status":"publish","type":"platowire","link":"https:\/\/platoai.gbaglobal.org\/platowire\/government-allocates-90-million-to-fonterra-as-part-of-790-million-initiative-to-reduce-coal-usage\/","title":{"rendered":"Government Allocates $90 Million to Fonterra as Part of $790 Million Initiative to Reduce Coal Usage"},"content":{"rendered":"

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In a significant move towards reducing coal usage and promoting sustainable practices, the government has allocated $90 million to Fonterra, New Zealand’s largest dairy cooperative. This funding is part of a broader $790 million initiative aimed at supporting industries in their transition away from coal and towards cleaner energy alternatives.<\/p>\n

Coal has long been a major source of energy for various industries, including the dairy sector. However, its high carbon emissions and detrimental impact on the environment have prompted governments worldwide to seek alternative solutions. New Zealand, known for its commitment to environmental sustainability, is taking proactive steps to reduce its reliance on coal and promote renewable energy sources.<\/p>\n

Fonterra, responsible for approximately 30% of the world’s dairy exports, has been a significant consumer of coal due to its energy-intensive operations. The government’s allocation of $90 million to Fonterra will enable the cooperative to invest in infrastructure and technology upgrades that will facilitate the transition to cleaner energy sources.<\/p>\n

The funding will support Fonterra’s efforts to convert its coal-fired boilers to biomass boilers, which use organic materials such as wood pellets or agricultural waste as fuel. Biomass boilers are considered a more sustainable alternative as they emit significantly lower carbon emissions compared to coal-fired boilers. By making this switch, Fonterra aims to reduce its carbon emissions by approximately 100,000 tonnes per year.<\/p>\n

In addition to reducing carbon emissions, the transition to biomass boilers will also have positive impacts on air quality. Coal combustion releases various pollutants into the atmosphere, including sulfur dioxide and nitrogen oxides, which contribute to air pollution and respiratory issues. By adopting biomass boilers, Fonterra will significantly improve air quality in the regions where its operations are located.<\/p>\n

The government’s broader $790 million initiative aims to support other industries in their transition away from coal as well. This funding will be allocated to various sectors, including manufacturing, horticulture, and tourism, which heavily rely on coal for their energy needs. By providing financial support, the government hopes to accelerate the adoption of cleaner energy alternatives and drive the country towards its goal of becoming carbon-neutral by 2050.<\/p>\n

The initiative also includes funding for research and development in renewable energy technologies. This investment will enable the development of innovative solutions that can further reduce reliance on coal and promote sustainable practices across industries.<\/p>\n

The government’s commitment to reducing coal usage aligns with its broader environmental goals, including the Paris Agreement’s target of limiting global warming to well below 2 degrees Celsius. By supporting industries in their transition to cleaner energy sources, New Zealand aims to set an example for other nations and contribute to global efforts in combating climate change.<\/p>\n

In conclusion, the government’s allocation of $90 million to Fonterra as part of a $790 million initiative to reduce coal usage is a significant step towards promoting sustainable practices in New Zealand. By supporting the dairy cooperative in transitioning from coal-fired boilers to biomass boilers, the government aims to reduce carbon emissions, improve air quality, and drive the country towards its carbon-neutral goal. This funding also highlights the government’s commitment to supporting other industries in their transition away from coal and promoting renewable energy technologies.<\/p>\n