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Synlait native tree programme launched by Prime Minister

ESG11 December 2019SMLConsumer Staples

Electrode Boiler Fact Sheet December 2019
ELECTRODE BOILER

FACT SHEET

Synlait commissioned New Zealand’s first large-scale electrode

boiler in March 2019 to provide process heat/steam in its advanced

dairy liquids facility at Synlait Dunsandel.

The deliberate decision to not build another coal boiler is part of

Synlait’s bold sustainability strategy announced in June 2018 and

leads the way to a lower emissions future for New Zealand.

This was the first significant initiative that Synlait has implemented

to progress its goal of reducing off-farm greenhouse gas emissions

by 50% by 2028.

HOW DOES IT WORK?

The six-megawatt (6 MW) electrode boiler uses 11,000 volt electricity

to power electrodes submerged into water. Electricity flows from the

electrodes through ultra-pure boiler water inside an earthed neutral

basket inside the boiler shell. The flow of current creates a high

flux rate that generates steam by boiling water. The boiler produces

saturated steam of 180 degrees celsius at 10 bar.

The electrode boiler conversion efficiency of electrical energy to heat

energy is greater than 97%. Unlike a traditional water tube boiler only

a small amount of water is heated which enables it to go from cold

start to steaming at 8 tonne per hour (t/h) in less than an hour. When

the boiler is in hot standby mode it can steam from zero to 8 t/h in

less than 30 seconds.

Maintenance cost is low compared to a coal fired boiler and an

annual maintenance turnaround would take only two days. From an

operational point of view the boiler is classified as unattended and

needs no input from operational staff except for water chemistry

management and remote monitoring.

An electrode boiler differs from a household kettle in the sense that

the flowing of current in the former boils water as opposed to an

element that heats up to boil the water it is in contact with.

The process heat/steam from from the electrode boiler is used to

pasteurise and sterilise milk, clean production lines and equipment,

and assist in forming product packaging among other uses.

The installed electrode boiler has a 12MW design capacity. It is limited

to 6MW operational capacity as per current demand. The high voltage

supply capacity to site (66kV) is a limiting factor which Synlait is

working on with Orion to enable future demand expansion to 12MW.Electrode Boiler operating at Synlait Dunsandel.

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Whakapuāwai Fact Sheet, December 2019
THERE ARE THREE ASPECTS TO

WHAKAPUĀWAI:

1. Extensively landscape and plant thousands of native trees and

shrubs on the 15 hectares of grazing land behind our Dunsandel

operation. While the early planting programme requires plants

sourced from local nurseries, within a couple of years the plants

will come from our own nursery. In time, it will contain a wetland,

along with walking tracks, exercise zones and meeting areas

2. Work with farmers to identify areas on farms that would benefit

from restoration of natural ecosystems. This will focus on the

areas that will have the greatest environmental impact – riparian

planting and wetland areas. Plants from our own nursery will be

provided free to farmers, and our staff days will be used to help

the farmers regenerate these areas. Our farmer suppliers were

also given a tree during our annual supplier conference

3. Form partnerships to identify and restore community areas of

shared value. As an example, Te Waihora (Lake Ellesmere) is a

catchment area that has been significantly degraded as a result

of changes in surrounding land use. That part of Canterbury was

once a large wetland, home to thousands of species of animals

and plants, and a critical source of food for Ngāi Tahu. We are

now on a pathway to forming a partnership with our local hapū,

Ngāi Te Ruahikihiki, to work on restoration projects, starting

with extensive planting and wetland restoration around Muriwai

(Cooper’s Lagoon). We hope the improvements to this small

piece of land will become an exemplar for restoration that land

owners all around Te Waihora will follow

WHERE DOES WHAKAPUĀWAI FIT WITHIN

SYNLAIT’S WIDER SUSTAINABILITY PLAN?

In June 2018 Synlait announced its refreshed commitment to

sustainability with the release of its 10-year sustainability plan.

In the plan, Synlait made new commitments around water usage,

greenhouse gases, nitrogen loss, palm kernel expeller (PKE), and coal.

Included in the people area of the plan, Whakapuāwai, is a key

initiative that is enabling Synlait people and communities to live and

breathe our purpose of ‘doing milk differently for a healthier world’.

WHAKAPUĀWAI

FACT SHEET

Whakapuāwai is a wide-reaching environmental programme that

incorporates the establishment of an industrial scale nursery to

propagate native plants. The 15-hectare site at Synlait Dunsandel, will

be capable of growing more than one million native trees and shrubs

annually, and our goal is to plant four million native trees on farms and

community land by 2028.

Whakapuāwai means “to cause to blossom, develop, flourish, prosper,

thrive”. It is Synlait’s commitment to restoring and regenerating native

ecosystems, waterways and wetlands, flora and fauna. It is about

drawing people and groups together to improve water quality and

restore biodiversity and re-establish mahinga kai – the places and

natural resources that are culturally important to Māori.

Synlait staff receive one paid day per year to contribute to the

Whakapuāwai initiative. It is a way for them to live Synlait’s purpose

of ‘doing milk differently for a healthier world’, engaging with their

communities and contributing to environmental restoration in the

places where they live and work.

Whakapuāwai Fact Sheet, December 2019
MORE ABOUT WHAKAPUĀWAI

The 15 hectares behind the Synlait Dunsandel truck yard will be

extensively landscaped and planted with native trees and shrubs.

A wetland will be built there which will cleanse the waste water

from the Synlait factory and encourage flora and fauna to thrive.

It is expected that the programme will take a number of years to

complete.

Whakapuāwai will include walkways, exercise zones and meeting

pods to encourage Synlait staff to enjoy nature.

Synlait also has plans to build a large-scale native plant nursery, and

eventually they will build an education centre for staff and visitors.

WHAKAPUĀWAI FACTS

The Whakapuāwai programme site at Synlait Dunsandel will cover

an area of 15 hectares.

This site will be capable of growing more than one million native

trees and shrubs annually.

Our goal is to plant four million natives trees on farms and

community land by 2028.

An artist’s impression of Whakapuāwai at Synlait Dunsandel

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Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

NZX: SML

ASX: SM1

12 December 2019


Synlait native tree programme launched by Rt Hon Jacinda Ardern, Prime Minister of

New Zealand


The team from Synlait Dunsandel today hosted Prime Minister Jacinda Ardern who launched

Whakapuāwai, an environmental programme connecting, our people, our farmers, and our community

through the planting of native trees.


Whakapuāwai is a wide-reaching environmental programme that incorporates the establishment of an

industrial scale nursery to propagate native plants. The 15-hectare site at Synlait Dunsandel, will be

capable of growing more than one million native trees and shrubs annually, and our goal is to plant four

million native trees on farms and community land by 2028.


Prime Minister Jacinda Ardern opened Whakapuāwai planting a kowhai, a native New Zealand tree, that

now sit s alongside more than 1,000 natives already planted. Synlait staff will also receive one paid day per

year to plant natives as a way of supporting commitments to our farmers and communities to jointly

restore land in Canterbury.


Synlait’s CEO Leon Clement commented: “We can’t solve environmental challenges on our own, but

through Whakapuāwai we can lead by example and help connect our milk suppliers and community

groups to make a real difference. New Zealanders are passionate about creating a sustainable future for

our country, and at Synlait, we are in an ideal position to shape the change needed in our industry. It’s our

purpose to do milk differently for a healthier world, and Whakapuāwai brings this to life.”


“Our customers, and their consumers, have rapidly shifting expectations when it comes to how we care for

our planet, people and animals, and Synlait is responding to these demands to ensure a healthier world for

all. It’s our business to shape a future that ensures agricultural and industry is fit for a better world.”


The Prime Minister was joined by the Minister of Agriculture Damien O’Connor and Synlait staff, milk

suppliers and local iwi members at the event.


The Prime Minister also visited New Zealand’s first large-scale electrode boiler while at Synlait, which

provides renewable process heat for company’s advanced dairy liquid packing facility. Synlait made a

deliberate decision to not build another coal boiler is part of company’s bold sustainability strategy

announced in 2018, which leads the way to a lower emissions future for New Zealand as we work to reach

our goal of reducing off-farm greenhouse gas emissions by 50% by 2028.


BACKGROUND


What does Whakapuāwai mean?


Whakapuāwai means “to cause to blossom, develop, flourish, prosper, thrive”. It is Synlait’s commitment to

restoring and regenerating native ecosystems, waterways and wetlands, flora and fauna. It is about

drawing people and groups together to improve water quality and restore biodiversity and re-establish

mahinga kai – the places and natural resources that are culturally important to Māori and our community.


More information


For further background about Synlait’s Whakapuāwai Programme and Electrode Boiler please see the fact

sheets released alongside this announcement.


You can read more about Synlait’s sustainability strategy in our ‘Sustainability at Synlait

’ report released last

month.


Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com



For more information about Synlait visit www.synlait.com

or contact:


Media

Linda Chalmers

Senior Communications Advisor – External

P: +64 21 951 347

E: linda.chalmers@synlait.com



Investors

Hannah Lynch

Corporate Affairs Manager

P: +64 21 252 8990

E: hannah.lynch@synlait.com

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