The company announced that construction on the $24 million project had commenced on Tuesday, with the 8.2 megawatt (MW) renewable energy system to be a combination of solar and co-generation technology.

The system comprises 17,000 solar panels in addition to an anaerobic digester fuelled by biogas produced from potato waste - which is currently fed to pigs - to generate energy.

The project will see thousands of solar panels installed on existing, though currently unused, land surrounding the potato plant, with one panel on an entrance bridge and 200 square metres of others to be set-up to provide shaded car parks for employees.

These will essentially look like carports, but with a solar panel for a roof.

Three electric charging ports will also be installed in this car park area, for employees who choose to upgrade to an electric car.

The system is a key step towards making the Ballarat plant carbon neutral and once completed, will reduce emissions at the site by more than 27,000 tonnes of CO2 per year.

It is envisaged that the plant will be able to run solely from solar energy by day if the weather is sunny enough, while the anaerobic digester is a smaller addition to the energy requirement - but it is constant and will run as long as potato wastage is fed into it.

A battery will not be built to store solar power, as the capacity being produced will not exceed its requirements.

Construction has already begun, creating about 50 jobs over the course of the expected 12 months construction period.

An extra two jobs will be created after its construction, in order to maintain the new system.

McCain Foods' Regional President Australia, New Zealand, South Africa, India and China, Louis Wolthers, said the company was committed to being "greener".

"Globally, McCain Foods is committed to reducing our CO2 emissions by 50 per cent by 2030, ceasing any reliance on coal by 2025, and having 100 per cent of our plants powered by renewable electricity by 2030."

Mr Wolthers said the Ballarat project was a significant contribution to this target and would set a precedent for other large-scale projects for other major processing businesses.

The combination of the two systems will reduce McCain's reliance on natural gas by 16 per cent, in addition to energy consumed from the grid by 39 per cent.

In addition to the system, Mr Wolthers said in order to meet its targets for a carbon neutral Ballarat plant, it would need to place the "last piece of the puzzle".

To do so, McCain will buy clean energy off the grid. It already has a supplier, and foresees that it will be able to announce Ballarat as a 100 per cent clean energy site by 2023.

"We definitely think Ballarat will be a clean site well before the target of 2030. So this is really exciting for us."

The initiative is the latest step in McCain investing in Ballarat. In 2018, it undertook a $57 million upgrade to the plant.

Mr Wolthers said the company would continue to invest in Ballarat - its home in Australia, where it has been operating since 1977.

"It's our primary production plant for potatoes and is our only production plant for pizza and meals," Mr Wolthers said.

"We are very happy with our business here in Australia and we will continue to invest in our business here. We see ourselves as being very much a part of the nation here and certainly of the community in Ballarat."

The project is one of many initiatives McCain is undertaking across the globe in order to reduce emissions in line with its Be Good. Do Good. Sustainability Report launch.

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Mr Wolthers said McCain Foods would continue to demonstrate its commitment to 'Growing Green and Golden'.

"... sustaining communities, local economies, farmers and jobs for generations to come. That means every day, we're making smarter decisions to reduce our impact on the environment in Australia," he said.

"Unfortunately from an energy provision point of view, Australia has a fairly dirty footprint - being reliant on coal fired power generation. So if we can be part of moving away from that and accelerate that in a way, that's very exciting for us."

The solar system was funded through a partnership with Smart Commercial Solar Pty Ltd under a Power Purchase Agreement (PPA), funded by renewable investment fund, Solar Bay.

The company's Huon Hoogesteger said the business was excited to be partnering with McCain Foods.

"We pride ourselves on trust and transparency, and delivery of energy solutions that make great financial, social and environmental investments," Mr Hoogesteger said.

"We're proud to be involved in this industry-leading project, and we're looking forward to seeing this become a commercial reality."

Behind-the-meter means that renewable energy is generated to produce power for on-site use.

Construction on the project is expected to be completed by July 2021, however, the system will begin generating energy by January 2021.

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