Timaru wool scour replaces coal boiler with electric in $9.5 million upgrade

Aug 27, 2023

The removal of a coal-fired boiler from a Timaru wool scour will reduce CO2 emissions by 11,000 tonnes a year – the equivalent of taking 3000 cars off the road.

Woolworks, which owns the Timaru scour, said $9.5 million had been invested in the project to replace the coal-fired boiler with an electric boiler.

The plant is believed to be only the second early stage textile processor in the world to become decarbonised.

The company invested $5.85m into the project with EECA (Energy Efficiency and Conservation Authority) contributing the remaining $3.65m through the Government Investment in Decarbonising Industry fund.

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Woolworks business development manager Rosstan Mazey said it was a significant milestone for the company, and for Wool Inc. New Zealand.

"While the apparel brands have been leading the way with championing the sustainability aspects of wool, the earlier stages of the supply chain have been slow to adopt carbon initiatives,’’ Mazey said.

"The ongoing benefits for the wool industry are significant. We have just returned from a sales trip through Europe and the customers that we visited were very clear they wanted product from companies that are committed to climate action.’’

The project was not only the right thing to do, but the investment had also presented the company with new commercial opportunities, he said.

"For example, companies like VF Corporation, the owner of Icebreaker, have made public pledges to the Science Based Targets initiative of a 55% carbon reduction in their supply chain by 2030.

"Effectively, this means their partners must also demonstrate significant carbon reductions if they want to supply into that chain.’’

He said eco-credentials, that showed how environmentally friendly a produce was, were of growing value for the New Zealand strong wool industry – materials and manufacturing processes now being critiqued by consumers and manufacturers.

"Woolworks has positioned its business to meet the market needs now, and this is a significant advantage for New Zealand suppliers of woollen product who embrace a sustainable value chain.’’

He said the investment would lead to positive benefits for New Zealand farmers as wool exporters would be able to market the wool differently.

"International wool customers who are adapting their business to align with modern consumer eco-sourced products will view wool through this zero-carbon processing site as being positive and preferred versus non-decarbonised wool or synthetic alternatives."

Woolworks believed the best way to counter climate change was through reducing its carbon footprint, rather than forestry offsetting, he said.

Woolworks chief executive Nigel Hales said to get a project of this scale and size over the line, during a pandemic, had been a "Herculean task".

"We would like to thank all of those responsible for bringing this project to fruition and look forward to being of service to the New Zealand farmer and wool industry.’’

He acknowledged the support of the company's shareholders, EECA, and the GIDI fund, Meridian Energy and Alpine Energy, Lumen, the PEI group, and the Windsor Engineering group.

EECA general manager business Nicki Sutherland said projects such as Woolworks’ not only lessened the business’ impact on the climate, "but can reduce costs and improve competitiveness in a low-carbon economy".