Generic Hero BannerGeneric Hero Banner
Latest Market News

New Zealand’s Fonterra starts electrode boiler

  • Spanish Market: Biomass, Coal
  • 09/05/25

New Zealand dairy co-operative Fonterra has turned on an electrode boiler at its Edendale plant and commissioned two more. This will help reduce CO2 equivalent (CO2e) emissions by 72,800 t/yr from 2027.

The co-operative's three boilers will replace coal-fired systems and be powered by renewable energy generated at Edendale, it said on 7 May. Emissions reductions from the plant will account for 4pc of Fonterra's target of a 50.4pc reduction in scope 1 and scope 2 emissions relative to 2018 levels by 2030.

The co-operative has committed NZ$70mn ($41.3mn) to build the Edendale boilers, with additional co-funding from New Zealand's Energy Efficiency and Conservation Authority (EECA).

Fonterra's on-farm emissions are excluded from New Zealand's emissions trading system, but its coal boilers fall under the scheme.

The co-operative has been moving away from coal boilers since 2018, reducing its CO2e emissions by 200,400 t/yr through six conversions.

Fonterra has converted coal boilers into wood-fired and electrode boilers in collaboration with EECA. Its 2020 Te Awamutu coal-to-biomass boiler conversion led to a 98.4pc decline in CO2e emissions, from 90,395 t/yr to 1,425 t/yr, according to an EECA study.

Fonterra was looking for 80,000-100,000t of Vietnamese wood pellets on a one-year contract starting in mid-2025 as it moves away from fossil fuels to renewables, market participants told Argus in December 2024.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

20/06/25

Cop 28 outcome must be implemented in full: Cop 30 head

Cop 28 outcome must be implemented in full: Cop 30 head

London, 20 June (Argus) — The incoming UN Cop 30 summit president Andre Correa do Lago has set out his objectives for the conference in November, placing as a key priority the Cop 28 outcome of trebling renewables capacity and transitioning away from fossil fuels. Correa do Lago today said his plan is to drive "collective action" to tackle climate change, placing a strong emphasis on the global stocktake, the first of which was concluded at Cop 28 in 2023 . That outcome saw almost 200 countries commit to "transition away" from fossil fuels, as well as treble renewables capacity by 2030. The global stocktake, a five-yearly process, sets out progress made towards Paris climate agreement goals. Today's "Action Agenda must drive momentum towards the full implementation of the GST [global stocktake]", Correa do Lago said. The incoming Cop president is focusing on implementing agreements made at previous Cops, and ensuring that countries and all other stakeholders — such as sub-nationals and the private sector — work together to put the decisions into action. Correa do Lago's letter today repeated language from the Cop 28 outcome, and noted his other main themes for Cop 30, which will take place in Belem, in Brazil's Para state, on 10-21 November. As well as shifting energy, industry and transport from fossil fuel-powered to lower- or zero-carbon alternatives, he listed forests, oceans and biodiversity and agriculture and food as key topics. Further topics involved building resilience for cities, infrastructure and water and human and social development. A final priority was enablers and accelerators across the board, including for finance and technology. Correa do Lago said in May that Cop 30 should be a "pivot point" to action on climate change, and "a new era of putting into practice" what has been agreed at previous Cop summits. He has noted a difficult geopolitical situation , which could make talks more challenging. Brazil's Cop 30 presidency is also focused on climate finance at UN climate talks, currently underway in Bonn, Germany. These 'halfway point' discussions serve to cover substantial technical groundwork ahead of political talks at Cop summits each November. Brazil yesterday at Bonn presented a draft of a roadmap to scale up climate finance — from all sources — to $1.3 trillion/year by 2035. The roadmap will not be officially negotiated, although it was a key outcome from Cop 29 in 2024 and is likely to be finalised just ahead of Cop 30 this year. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pertamina buys into Philippine renewables firm


20/06/25
20/06/25

Pertamina buys into Philippine renewables firm

Singapore, 20 June (Argus) — Indonesian state-owned oil and gas producer Pertamina has bought a 20pc stake in Philippine firm Citicore Renewable Energy (CREC) as it looks to expend its presence in the renewables sector. The Indonesian firm's renewable energy (RE) subsidiary, Pertamina NRE, paid $120mn for the stake in a deal signed on 19 June. This is Pertamina's first renewable energy investment in the Philippines. CREC is one of the Philippines' leading renewable energy producers, generating about 287MW peak (MWp) of solar power across the country. The company has 25.7MW of hydropower and 362 MW of wind power projects under development. CREC plans to jointly explore renewable energy investments in Indonesia with Pertamina NRE. The partnership "is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals," said Pertamina NRE chief executive John Anis. The deal comes after the World Bank approved a $2.1bn blended finance package earlier this week to accelerate Indonesia's clean energy investments. The partnership will help strengthen energy co-operation between the two countries, Philippine energy department assistant secretary Mylee Capongcol said The Philippines and Indonesia signed an initial agreement for energy co-operation in 2024, highlighting their joint commitment to the energy transition. "Both Indonesia and the Philippines share common energy concerns, being dependent on coal-fired power plants and seeking an orderly transition to cleaner technologies," Capongcol said. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian Bowen Coking Coal meets FY25 guidance early


20/06/25
20/06/25

Australian Bowen Coking Coal meets FY25 guidance early

Sydney, 20 June (Argus) — Australian coal producer Bowen Coking Coal (BCC) met its production and sales targets for the July 2024-June 2025 financial year by the end of May, the company said 20 June. The company had sold 1.7mn t of coal which came in the middle of its full year guidance of 1.6mn t–1.9mn t. It is on track to hit the upper end of its sales guidance by the end of the current financial year on 30 June. BCC also produced 2.7mn t of run-of-mine (ROM) coal over the same period, hitting the lower end of its full year guidance. It expects to reach the upper end of its guidance by late June. BCC produces both coking and thermal coal. Coking coal accounted for 55pc of the company's total sales over the first nine months of the financial year. It did not give the year-to-date breakdown of thermal and coking coal sales. The company's unit costs for the year are on track to meet the lower end of its guidance, at A$151/t ($98/t). It left its unit cost guidance for 2024-25 financial year unchanged today at A$145/t–A$161/t. BCC's modest unit cost guidance and strong sales performance comes as it faces significant cashflow challenges. It is looking for capital and may need to pause or limit mining operations at the Burton mine complex if it is unable to secure funds. Many producers operating in Australia's Bowen Basin have faced major coal export challenges this year, in contrast to BCC's success. Two coking coal mines in the region — UK-South African producer Anglo American's Moranbah North and global miner Glencore's Oaky Creek — have been non-operational for most of the last two months, over safety and water leak issues. Australian rail operator Aurizon also reported a 4.6mn t year-on-year decline in haulage volumes in the Bowen Basin over January-April 2025 , which pushed down its total haulages by 6.2pc on the year. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Bowen Coking Coal faces finance challenges


20/06/25
20/06/25

Australia's Bowen Coking Coal faces finance challenges

Sydney, 20 June (Argus) — Bowen Coking Coal (BCC) has become the second Australian coal mining firm this month to seek capital to enable it to continue operating, as weak coal prices have cut cash flow across the industry. BCC has not revealed the amount of money it is looking to raise, but warned today that it may need to temporarily pause or cut production at its 5.5mn t/yr Burton mine complex if it does not secure additional cash. The company is looking into debt, equity and hybrid funding arrangements, but it is not certain that it will be able to secure enough funding to continue operations as usual. BCC's cash flow problems stem from persistent price weakness in the coking and thermal coal markets. Coking coal accounted for 55pc of the company's total sales over July 2024–March 2025 — the first three quarters of the financial year. Argus' 5,500kcal thermal coal price has fallen over the 2024-25 financial year (July-June), from $86.92/t fob Newcastle on 1 July to $66.62/t fob Newcastle on 19 June. Its metallurgical coal premium hard low-volatile fob Australia price declined from $237/t to $175.75/t over the same period. BCC is also facing financial challenges unrelated to prices. Queensland's coal royalty rates — which progressively increase based on commodity prices — are unsustainable and this is putting extreme pressures on producers, the company said. BCC's capital-raising campaign comes just weeks after US-Australian producer Coronado inked a $150mn financing deal with Australian state-owned electricity generator Stanwell, to ease its cash availability challenges. US credit ratings agency Fitch downgraded Coronado's credit rating from B to CCC+ on 14 May, citing volatile premium hard coking coal prices. It does not rate BCC's credit worthiness. Coal firms that rely on longer-term supply contracts and offtake deals are better positioned to manage coal price fluctuations than producers reliant on spot markets. Long-term coal supply deals and offtake agreements often include price floors that protect producers from price swings, easing cyclical pressures. Australian producers of higher-calorific value (CV) coal — around 6,000kcal — are likely facing some pricing difficulties, but have more breathing space than BCC. Australian producer Whitehaven Coal and Chinese-Australian producer Yancoal will probably only start losing money on high-CV operations when prices drop to around $80/t, based on their costs and operating margins. Argus ' 6,000kcal thermal coal price was last assessed at $102.08/t fob Newcastle. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Malaysian biomass transport cost to rise on subsidy cut


20/06/25
20/06/25

Malaysian biomass transport cost to rise on subsidy cut

Singapore, 20 June (Argus) — The cost of transporting biomass products could surge in Malaysia in the second half of 2025 because of fuel subsidy cuts by the government, potentially pushing up market prices. The Malaysian government is expected to reduce petrol and diesel subsidies in July, according to market sources. Malaysia first announced plans to reduce fuel subsidies in October 2024 , mainly targeting businesses, high income earners, and foreigners, with the subsidy to be removed entirely for these groups. This will inevitably lead to rising costs of procuring biomass in Malaysia, namely palm kernel shells (PKS) and wood pellets. PKS collection takes place at crude palm oil (CPO) mills, and the cargoes are then loaded on trucks, transported inland to loading ports, and exported to key buyers such as Japan. Wood residue is also sent to pellet manufacturing plants via trucks to be converted into wood pellets, before being delivered to loading ports. Cutting fuel subsidies that logistic firms currently enjoy will push up operational and transport costs, inflating the overall price of biomass exports from Malaysia. The subsidy cut may result in a $5-10/t hike in prices for Malaysian biomass, several market participants told Argus . This comes during a period of weak demand for Malaysian PKS, because prices of Indonesian PKS have fallen since the start of June to almost level with that of Malaysian products. Buyers are switching to Indonesian PKS because it has higher calorific value and quality. Meanwhile, demand for Malaysian wood pellets has been gradually increasing in 2025 because of higher buying interest from major wood-pellet consuming countries like South Korea and Japan, who are diversifying their sources. But higher prices caused by the reduction in fuel subsidies could still weigh on demand for Malaysian biomass in the coming months. By Joshua Sim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more