Phase 1 of off-farm decarbonisation roadmap completed

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








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19 September 2022

Synlait completes phase 1 of off-farm decarbonisation roadmap

Synlait Milk Limited (Synlait) has completed two key projects, which sees the first phase of its
decarbonisation roadmap completed.

The two projects will enable a reduction of scope 1 and 2 greenhouse gas (GHG) emissions by 38,000
tCO2e in FY23, progressively increasing to 58,000 tCO2e in FY26, when the projects are expected to
reach full capacity. Based on Synlait’s FY20 scope 1 and 2 GHG emissions, this would represent a 41%
reduction in absolute emissions – a major step towards achieving the company’s SBTi-approved
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target of reducing scope 1 and 2 emissions by 45% by FY28.

Synlait CEO Grant Watson commented: “Synlait has a significant environmental footprint. We must
therefore have strong sustainability credentials, which form part of our right to play but are also a right
to win. We are committed to continuing to take a leadership role and deliver projects that accelerate
our unrelenting passion for the planet and its people.”

“The increased utilisation of our electrode boiler and the transition to biomass allows Synlait the
flexibility to minimise its environmental impact, while providing redundancy and resilience in its
process heat generation. Thanks to our internal team and external partners for supporting us to
deliver these two projects and complete the first phase of our decarbonisation strategy."

A summary of the two projects is below.

ELECTRODE BOILER

Synlait established its decarbonisation plan in 2018. The programme started with the commissioning
of New Zealand’s first large-scale electrode boiler at Synlait Dunsandel, which provides renewable
process heat for the company’s Advanced Dairy Liquid Processing Facility.

The electrode boiler has been upgraded to a maximum 12 MW capacity (from 6 MW) and connected to
the entire Dunsandel facility allowing it to increase its typical running rate from 2 MW to 10 MW. The
upgrade includes an innovative system that enables Synlait to use electricity when time-of-use rates
make it cheaper than coal.

The project was co-funded by Synlait and the Energy Efficiency and Conservation Authority’s (EECA)
Government Investment in Decarbonising Industry (GIDI) Fund.

BOILER TWO BIOMASS

Boiler 2 at Synlait’s Dunsandel site has been converted to biomass (from coal) and will progressively
increase its usage of wood pellets made from New Zealand forestry waste and sawmill residues.




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Science Based Targets initiative (SBTi)

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



The project was also co-funded by GIDI and Synlait’s strategic customer and shareholder, The a2 Milk
Company.

Planning for phase two of the decarbonisation roadmap will start in this financial year and focus on
conversion to biomass, renewables, and energy efficiency.

For more information contact:
Hannah Lynch
Head of Corporate Affairs and Brand
P: +64 21 252 8990
E: hannah.lynch@synlait.com