[Disclosure: AgFunderNews’ parent company AgFunder is an investor in CH4 Global.]
CH4 Global, a startup dedicated to cutting livestock methane emissions with feed supplements from Asparagopsis red seaweed, has begun production at what it claims is the world’s first commercial-scale facility for growing Asparagopsis.
While some startups in the field have argued that methane-busting vaccines or synthetic feed additives are more cost-efficient and scalable than growing vast amounts of seaweed, CH4 Global cofounder and CEO Dr. Steve Meller said the new ‘EcoPark’ facility in Louth Bay, South Australia “lays to rest any doubt about whether Asparagopsis production can be scaled to meet commercial demand.”
He added: “We’ve cracked the code on making methane-reducing feed supplements commercially viable without requiring government subsidies, a crucial step in scaling this important climate solution.”
With the EcoPark, CH4 Global now has “more production capacity than all other producers combined, putting us in a unique position to meet growing market demand,” said Meller. “The simple fact is that natural Asparagopsis is the safest, most effective way to reduce methane emissions from cattle, and our cost efficiencies mean farmers can now realize a net economic benefit while significantly reducing their carbon footprint. This is how you drive rapid adoption of climate solutions.”
“Our goal is that the combination of increased farmgate pricing plus enhanced feed conversion will more than offset the cost of the product. Carbon credits would then be additional potential profit.”
Scalable land-based growing system
One challenge when growing photosynthetic microorganisms such as Asparagopsis in tanks on land is that as they multiply, they block other cells in the tank from receiving light, topping out at relatively low densities, which makes scaling a huge challenge.
CH4 Global has overcome this challenge with covered outdoor ponds that enable it to grow the seaweed at significant scale, claimed Meller. “We have shown that we can efficiently and effectively grow it at a much larger scale, frankly, than anybody else. And we can do so in a way where we don’t limit the propagation and the growth rates of the seaweed.”
He added: “Growing it in the ocean is not commercially feasible in any way, shape, or form, so most companies have moved to a land-based system in tanks, but as you increase the density, the seaweed can’t get sufficient light.
“Our ponds are designed to optimize the current and fluid flows so you can still get light penetration even as you double and continue to double and replicate. So there are no dead zones, no spots where current doesn’t flow, no locations where light isn’t penetrating at a certain intensity.”
The company then deploys a patented processing method it claims reduces the loss of volatile bioactives, provides stability and reduces cost, waste and energy use, said Meller.
“The seaweed is spun and then dried to remove water. It is then ground with other ingredients to ensure maintenance of the actives before being blended with further ingredients to make product suitable for feedlot usage.”
Scaling up
The EcoPark’s initial phase includes ten 200,000-liter cultivation ponds able to produce more than 80 metric tons of Asparagopsis annually.
Over the next year, the facility will expand to 100 ponds capable of serving 45,000 cattle per day, and with additional investment could expand to 500 ponds serving hundreds of thousands of cattle per day, claimed Meller, who is confident of achieving gross profit margins “in excess of 40%.”
When used as a feed supplement at less than 0.5% of the daily diet, Asparagopsis “has been proven to reduce methane emissions from cattle by up to 90%,” he added. “This all-natural solution is not only more effective at reducing enteric methane emissions than synthetic alternatives but also avoids potential concerns around consumer acceptance.”
Commercial partnerships
CH4 Global recently struck a strategic partnership with Mitsubishi Corp to accelerate the adoption of the tech in Asia-Pacific markets. It has also signed an offtake agreement with protein producer CirPro and struck a multi-year agreement with agricultural products giant UPL to target markets in India, Brazil, Argentina, Uruguay and Paraguay.
It is also exploring the market opportunity in South Korea with Lotte International and supplying its supplements to Wagyu beef cattle at an Australian subsidiary of Lotte.
Over 150 countries have signed the Global Methane Pledge, which aims to reduce methane emissions by 30%. This followed a report issued by the IPCC in May 2021 describing methane as “the single biggest lever for climate change impact in the next 25 years.”
Further reading:
Sea Forest strikes deal to bring livestock methane-busting seaweed supplements to East Africa
CRISPR: A gamechanger for livestock methane reduction? ‘It’s high-risk, high-reward,’ says UC Davis professor
Rumin8 CEO on livestock methane reduction: ‘It must be profitable for farmers; without them, none of this happens’
ArkeaBio: Vaccination is ‘the lowest cost and easiest to scale’ livestock methane reduction solution
Number 8 Bio CEO: Synthetic chemistry, not seaweed or biomanufacturing, is key to cost-effective livestock methane reduction
Methane-busting feed supplements are beginning to scale. But who will foot the bill, and what will drive widespread adoption?
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Author Elaine Watson
