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Renewable energy
100% of the electricity for our sites in Australia is generated using renewable energy sources
One of our key milestones on the road to 2050 is to source 100% of the electricity used across our sites from renewable energy sources by 2025 – and we’re proud that we have achieved this in Australia, well ahead of our global target.
Favourite Aussie brands including KitKat, Milo, Allen’s, Nescafé, Uncle Tobys and Purina pet food are now made at factories where 100% of the electricity is sourced from wind power.
In 2021, we entered a 10-year agreement with Squadron Energy to make our first renewable power purchase agreement (PPA), bringing us one step closer to reducing our net emissions.
Power generated from Squadron Energy Crudine Ridge and Sapphire wind farms in NSW will cover the electricity needs of all our sites in Australia, which includes factories, distribution centres, corporate offices, retail boutiques, and laboratories. This is the equivalent of powering approximately 18,785 New South Wales households per year.
Since making the switch, Nestlé has already saved more than 90,000 tonnes of carbon emissions in Australia, with more to come.
So how does it work?
Under the PPA – or power purchase agreement – we pay Squadron Energy to generate enough renewable electricity to cover our expected needs in Australia for ten years. We also receive large-scale generation certificates that acknowledge this purchase and demonstrate that our electricity comes from renewable energy sources.
Renewable energy in our operations
The switch to renewable electricity across our sites builds on the existing use of renewable energy to help power our factories.
Smithtown Factory – the home of MILO
Nestlé has been operating in Smithtown for over 100 years, manufacturing powdered beverages such as MILO, Nescafé mixes, Nesquik and Malted Milk.
More than 80% of the factory’s energy comes from locally sourced sawdust, with the waste used as a soil enhancer.
Gympie Factory – the home of Nescafé
The Nestlé Gympie factory is the home of Nescafé coffee, producing more than 20 million cups of coffee every day – or 230 cups every second.
The factory uses spent coffee grounds, locally sourced sawdust, and wind to produce 83% of the energy used in operations. This has also helped to reduce site waste, with the factory sending zero waste to landfill since 2021.
iBased on the median average for New South Wales energy consumption, Residential energy consumption benchmarks pg. 24, 2020
iiEmission reductions calculated using National Greenhouse Accounts Factor, Australian National Greenhouse Accounts August 2021, Table 5; figure excludes the volume accounted for in the purchasing of LGCs in line with renewable power percentage
Last updated Jan 2024