Switching to natural gas

Location: Chile

Impact Area

  • Nutrition
  • Water
  • Rural Development
  • Environmental sustainability
  • Compliance
  • Community engagement
  • Gender balance & diversity
Sep 1, 2013, updated September 2013

Switching to natural gas
Improving our factories:Our milk factories in Chile are switching to natural gas.

We’ve invested heavily in our factories in Chile to meet the highest environmental standards with the aim of improving our environmental performance. The newest milk factory in Cancura is one of the most technologically advanced facilities of its kind in the world.

Programme description

Chile is leading the way with an ambitious and innovative project to switch our Osorno, Cancura and Llanquihue milk factories from using coal and fuel oil to natural gas. We’ve already invested CHF 5 million to install and convert factory equipment

The benefits will include:

  • Cleaner, more efficient energy use
  • A 30% reduction in GHG emissions across the three sites
  • Low particulate emissions ahead of future regulations and
  • Projected cost savings of CHF 1 million a year at Llanquihue

The fuel switch will also make the repetitive, manual task of removing slag from Llanquihue’s coal boilers a thing of the past. The initiative is not simple. Our Chilean factories’ southerly location puts them out of reach of the country’s natural gas pipeline. To overcome this, they will be supplied with liquefied natural gas by truck, made possible by expanded facilities at the Quintero gas terminal 1,000 km away. GHG emissions from transporting gas by road will reduce by 10%.

Value to Society

Our goal is that Nestlé products will not only be tastier and healthier, but also better for the environment along their value chain. It’s a challenge we approach by identifying areas for improvement at every stage from farm to factory, to consumer and beyond.

By investing in our factories to switch to natural gas we ensure reduced GHG emissions across the three sites and overall cleaner, more efficient energy use.

Value to Nestlé

Next Steps

Commissioning is scheduled for April 2014, once the factories have installed the necessary storage tanks and converted coal boilers and air heaters to natural gas operations.