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Fonterra is trialling wood pellets at its Te Awamutu site in a bid to move away from using coal.
Fonterra Chief Operating Officer for Global Operations Robert Spurway told The Country Early Edition's Rowena Duncum that the trial has been "quite successful".
"It's one of the ways that we've identified that we can reduce our carbon emissions".
If the trial becomes a permanent fixture, Fonterra will reduce emissions by about 84,000 tonnes a year said Spurway.