CSIRO is backing the formation of a new company to take a methane-busting seaweed to market, with $13 million secured from five investors.
FutureFeed Pty Ltd will commercialise a livestock feed additive made from the seaweed Asparagopsis, which has been shown to reduce methane emissions in beef and dairy cattle by more than 80 per cent in research trials in Australia and the USA.
AGP Sustainable Real Assets-Sparklabs Cultiv8 Joint Venture, GrainCorp, Harvest Road, Woolworths and CSIRO have committed to investing in the company.
The newly established FutureFeed company will develop a full value chain for the livestock feed supplement, from seaweed cultivation and production through to processing and feed manufacture in order to supply beef and dairy industries globally.
The company expects to see commercial volumes of the feed additive supplied into the Australian beef and dairy market by mid-2021, with international markets to follow.
When Asparagopsis is fed as a supplement to cattle, it not only reduces methane emissions but also supports productivity.
The supplement has been developed and trialled over more than five years by CSIRO in collaboration with Meat & Livestock Australia and James Cook University.
CSIRO scientists estimate that if the feed additive were to be adopted by 10 per cent of beef feedlots and dairy industries globally, this could reduce livestock industry greenhouse gas emissions by approximately 120 megatonnes per year, equivalent to taking around 50 million cars off the road for a year.
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