Business context
Sector: Textile rental and commercial laundry services
Location: National with key sites in Nelson, Christchurch, Dunedin and Invercargill
Scale: Serving more than 21,000 customers nationwide; 900-strong team; operating since 1910
The challenge
Commercial laundry is an energy-intensive business. High-temperature steam is central to every processing plant, and for most of the industry’s history, coal has been the default fuel for generating it. For Alsco Uniforms NZ, coal powered the steam boilers at its four South Island sites for decades.
As sustainability goals became central to the business, it was clear that decarbonising process heat would be essential. The challenge wasn’t just about reducing emissions, it was also technical. Any replacement fuel had to deliver the same consistent, high-intensity steam pressures that coal provided. Energy security and long-term operational reliability were non-negotiable.
Continuing with coal would have locked in a higher emissions profile for longer. This would have been out of step with both the company’s values and its ambitions to lead on sustainability in the sector.
What changed?
Alsco Uniforms made the decisive call to remove coal from all its operations and replace it with biomass (wood pellets). Rather than waiting for regulatory pressure or industry-wide mandates, the business moved proactively, working with engineering partners to design and commission biomass boiler systems that could match the performance demands of commercial laundry.
The transition moved site by site across the South Island. Nelson and Dunedin converted first, proving the concept worked at scale. By late 2024, the final two sites followed. Invercargill completed its conversion in October, and Christchurch commissioned a newly engineered, locally made biomass boiler in November. Each installation was designed for long-term reliability, consistent steam pressure and smooth integration into daily operations.
In doing so, the company also challenged a long-held industry assumption that coal was the only fuel capable of delivering the stable, high-intensity steam that commercial laundry demands. Modern biomass systems proved they could match, and in some cases, outperform legacy coal boilers.
The results so far
By the end of 2024, Alsco Uniforms NZ was officially coal-free. This was more than five years ahead of its original target. The impact on emissions has been significant. The South Island conversions alone account for nearly half of the organisation's total emission reductions.
Key outcomes:
Projected 60% reduction in carbon emissions compared to a 2019 baseline
Christchurch: 87% emissions reduction expected (about 1,990 tonnes annually)
Invercargill: 86% emissions reduction expected (about 4,075 tonnes annually)
Dunedin: 89% emissions reduction expected (about 2,345 tonnes annually)
Named a finalist in the 2025 New Zealand Energy Excellence Awards (Large Energy User Initiative of the Year, sponsored by EECA)
What’s next?
With the coal-free milestone achieved, Alsco Uniforms NZ is now focused on the next stage of its 2030 goals. The priority is deploying and trialling high-temperature heat pumps for hot water generation, a move that would electrify another component of the process and reduce demand on existing heat infrastructure. These heat pumps will be complemented by behind-the-meter solar energy systems, which will charge hot water storage after hours, effectively creating a thermal battery for site operations.
The business is also working on energy efficiency improvements across its operations. For the wider industry, continued development of low-emissions process heat infrastructure, fuel supply resilience and knowledge sharing will be essential to helping more organisations follow similar pathways to electrification.