Carbon neutral by 2050: Danone invests US$28m in sustainability at South Island Nutricia spray drying plant

30 Jul 2019 --- Global food company Danone has invested NZ$40 million (US$28 million) in its Nutricia spray drying plant, in a move that brings it closer towards achieving carbon neutrality by 2050. This milestone will be driven primarily by the installation of a NZ$30 million (US$19.5 million) state-of-the-art biomass boiler that will reduce the plant’s CO2 emissions by 20,000 tons per year. The plant, located in South Island, New Zealand, processes raw milk sourced from eighteen local farms into powder that is used as the base for production of leading Infant Milk Formula (IMF) brands including Aptamil and Karicare.

Boilers play a central role in spray drying – the process of converting milk into a dry powder through the application of heat – with around 85 percent of the entire plant’s energy consumption coming from steam production. Unlike gas or the more common coal-powered boilers, Danone’s biomass boiler will be powered by sustainable wood fuels, which will be sourced locally, therefore delivering a positive economic impact. 

Biomass heating is a mature, proven technology and has been used successfully for many years in countries such as Austria, Finland and Denmark. “This significant investment, in what we expect to be New Zealand’s first carbon neutral plant of its kind, underscores Danone’s global ‘One Planet. One Health’ vision and the belief that the health of people and planet are interconnected,” says Cyril Marniquet, Danone’s New Zealand Operations Director. “We share the New Zealand Government’s ambitions in delivering a low-emissions, climate resilient future. At Danone, we’ve set ourselves an objective of becoming a carbon neutral company across our entire scope – from farm to family – by 2050. It is through key investments like this one that we take a step forward towards reaching this ambition.”

To bring its “One Planet. One Health” vision to life, Danone has defined its 2030 Goals, aligned with the UN Sustainable Development Goals (SDGs), including preserving and renewing the planet’s resources.

As part of its global journey towards carbon neutrality by 2050, Danone has also set intermediate targets – officially approved by the SBTi (Science-Based Targets initiative) – in line with the global measures necessary to meet the Paris Agreement objective of keeping global warming below 2° C. These targets include a 50 percent reduction in carbon emissions intensity across the company’s full scope by 2030. From 2016 to 2018, Danone already successfully reduced greenhouse gas emissions intensity by 15.6 percent worldwide. 

A 2018 Innova Market Insights survey found that 64 percent of US and UK consumers expect companies to invest in sustainability. The survey found that consumers’ environmental concerns outweigh social and ethical ones when considering the brands that they buy. This market dynamic has inspired product development, with 57 percent average annual growth reported in food & beverage launches with an ethical/environmental claim (Global, 2013-2017).

Leading on this front, inventor of the modern plant-based emulsifier Palsgaard cemented its position as an “early mover” on the carbon production front. The company announced in July that it had achieved its aim of total carbon-neutral production two years prior to its 2020 goal. FoodIngredientsFirst, our sister website, was at Palsgaard’s headquarters in Juelsminde, Denmark, at the time of the announcement to hear the news first-hand. 

State-of-the-art biomass boiler 
Veolia, a global leader in resource management, will be responsible for designing and managing the construction of the biomass boiler, guaranteeing the future operation and performance of steam production. The plant, located in South Island, New Zealand.

“Danone’s biomass boiler at the Balclutha facility will be fuelled by by-products or residue of forestry activity that may ordinarily go to waste. These lumber production by-products, while traditionally disposed of or burned, are valuable sources of heat, steam, and/or electricity when used in a biomass boiler system. Danone will source fuel from local partners who participate in New Zealand’s Forest Stewardship Council (FSC) certification scheme to ensure fuel is being sourced from sustainably managed forests. Danone also plans to broaden its source of fuel to include urban wood waste,” a Danone spokesperson tells NutritionInsight.

Alexandre Lagny, General Manager New Zealand for Veolia says that the company was “excited” to deliver the project as part of its global strategic partnership with Danone.

“Veolia has supported Danone with the development of the biomass project, aligning available biomass resources with optimal conversion technologies, while leveraging the company’s operational expertise to achieve the best possible environmental footprint for the site,” Mr Lagny adds. 

Danone’s investment in the plant also includes the installation of a new water treatment plant to more efficiently treat water waste, while ensuring compliance with Danone’s stringent global clean water standards.

“Danone is currently working to secure a renewable source of energy by 2021 for this specific energy needed during maintenance. We expect this will make the Balclutha facility the first carbon neutral plant of its kind to serve New Zealand’s dairy industry,” the spokesperson adds.

Danone acquired the Balclutha spray drying plant and its Airport Oaks (Auckland) blending, packing and canning facilities in 2014. Since then, the company has invested NZ$150 million (€90 million) to double production capacity of finished infant formula products in New Zealand and transform its facilities in the country, enabling manufacture to Danone’s exacting global food safety and quality standards with a continued focus on sustainability. 

Edited by Laxmi Haigh