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Saputo Dairy reduces emissions through biogas to energy

23 Feb, 2026
Saputo Dairy reduces emissions through biogas



Saputo Dairy Australia (SDA) has announced the commissioning of a purpose-built biogas-to-energy system at its Allansford manufacturing facility, setting a new benchmark for renewable energy innovation within the dairy industry.

This milestone project is expected to significantly improve the site’s environmental performance by removing up to 14,000 tonnes of CO₂ emissions annually, the equivalent of taking 3,000 cars off Australian roads.

Harnessing advanced Capstone Microturbines, the custom-built system transforms biogas waste generated from dairy production into renewable power and heat.

By converting waste into energy, the facility will lessen its dependence on grid electricity while generating up to 25 per cent of its total power needs during peak production periods.

The project also supports broader regional electrification opportunities by freeing up additional grid capacity.

“This project is a testament to our commitment to environmental stewardship and innovation,” said James Moyle, SDA’s General Manager of Engineering and Strategic Projects.

“As part of our long-term vision for success in Australia, our investment in renewable energy is supporting a resilient and sustainable dairy industry while safeguarding the environment and fostering positive environmental change in our communities.”

To deliver the project, SDA partnered with Optimal Group, a company recognised for its engineering expertise and deployment of cleaner energy systems.

Optimal supplied and integrated the microturbine technology, ensuring SDA’s installation achieves maximum performance and operational efficiency.

Craig Dugan, CEO of Optimal Group, said: “Saputo is demonstrating their strong commitment to sustainability by installing this flagship renewable energy system.

“Optimal is delighted to have partnered with Saputo to deliver this turnkey project.”

He added: “As companies seek to reduce their Scope 1 and 2 emissions, hard to abate industry sectors have limited options to decarbonise.

“Often there is insufficient power available in the grid, or the temperatures their processes require cannot be delivered via electrification.

“Projects such as this are important to demonstrate the role of biogas in the path to net zero.”

The Allansford initiative also received financial support from the Victorian government through a $1 million grant from Sustainability Victoria, provided under the state’s Recycling Victoria: a new economy policy.

SDA’s project was one of 24 successful recipients in the Waste to Energy – Bioenergy Fund.

Through this funding and technological collaboration, the facility is now capable of capturing and utilising almost all of the biogas generated on-site, maximising energy recovery while reducing environmental impact.

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