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Mataura Valley Milk (MVM) has marked the start of the construction phase in its project to install a new steam boiler powered by renewable electricity at its site near Gore.

Scott Waddell, MVM Project Manager, broke the ground on which the new boiler will be installed at a ceremony on site today. Site preparation and initial construction works will be fully under way next month.

The ground breaking ceremony was attended by representatives of the Hokonui Rununga, who conducted a blessing ceremony, as well as key stakeholders, along with Mataura Valley Milk team members. The a2 Milk Company (a2MC) was represented by its recently appointed Chief Supply Chain Officer, Chopin Zhang.

The project involves the replacement of the existing coal-fired boiler with an electrode boiler, reducing carbon emissions by 22,000 tCO2e per year. The electrode boiler will provide essentially all the steam needed for the plant’s operations. Steam generation is an essential element in milk products manufacturing, providing heat to enable the drying of milk to powder. The new boiler is an important step towards developing MVM’s capability to produce high quality, zero emissions, infant milk formula and other nutritional products primarily for a2MC.

The new boiler will operate on 100 percent renewable energy provided by Meridian Energy, New Zealand’s largest 100 percent renewable energy generator. It is the first major asset investment by Mataura Valley Milk since a2MC became its majority shareholder in 2021.

The new boiler will be installed under contract by Windsor Engineering Group, a New Zealand company specialising in engineered and energy-based products, projects and parts; and servicing for customers across a range of industry and government sectors.

The Chief Executive Officer of MVM, Bernard May, said the new boiler is an important step to enhance the long-term sustainability of the Mataura Valley Milk plant.

“The project will see us set up with a high-efficiency, zero emissions boiler that overcomes one of the biggest hurdles to electrification in the dairy industry – achieving the temperatures required (in excess of 250° Celsius). This boiler will be the first of its kind in New Zealand.

“We are grateful for the support of our shareholders, The a2 Milk Company and China Animal Husbandry Group (CAHG), and to EECA (the Energy Efficiency and Conservation Authority) for its $5 million co-investment towards the project under the GIDI (Government Investment in Decarbonising Industry) fund .”

The project is expected to be completed later this year.

Mataura Valley Milk produces a range of premium nutritional products (skim milk and whole milk powders) at its plant at McNab, 4 km from Gore. It was established as a locally-driven initiative and opened in 2018. It is now owned 75 percent by The a2 Milk Company and 25 percent by CAHG.