Zero Methane Agriculture
CH4 Global Ltd (CH4) is seeking to impact global climate change in a significant and disruptive way through building a global, multi-billion-dollar red seaweed (Asparagopsis Armata and Asparagopsis Taxiformis) aquaculture business. CSIRO Queensland has developed FutureFeed in collaboration with James Cook University and Meat and Livestock Australia. The CSIRO patented technology has shown in trials that high level reductions (60-99%) in methane emissions are possible when As-paragopsis containing the active ingredient ‘bromoform’ at around 2% dry weight is itself fed as 2% by dry weight in formulated feed to dairy and beef cattle. Additionally, cows fed this feed eat approximately 50% less by weight and still produce the same productivity and quality of beef and milk with no adverse effects on the health of the cow or product quality. CH4 Ltd’s major challenge is to produce the biomass (dry weight) of Asparagopsis required to meet a ‘tight’ timeline, given that the chosen species has not previously been grown other than in very small quantities, generally in non-commercial environments.
There are a multitude of approaches to methane reduction in ruminants under development or in market around the world. They vary from probiotics, supplements (garlic, oils, tannins etc.), various natural and bred grasses, vaccines, cow and sheep breeding programs and synthetic chemicals. Data available suggests competitive initiatives will not be piloted until at least 2024, giving a two-year market advantage if CH4 can be in scale production by the end of 2022.
This forward-thinking global business has set up its Australian Head Office in South Australia and is working with the Department for Trade and Investment (DTI), South Australian Research & Development Institute (SARDI) and Primary Industries and Regions South Australia (PIRSA) to establish algae aquaculture in South Australian waters.
Seeking capital expenditure, J/V partners and off-take customers
Investment sought: A$40M
- The initial target is to be first to market globally in California in 2022, where there are 1.8 million cows that will have to comply with a 40% reduction in methane. This is an estimated $1.3 Billion market export opportunity. CH4 is focused on supply of 10% of this market by 2022 from aquaculture farms and processing facilities located in New Zealand, South Australia and Fiji.
- New Zealand’s 10 million cows creates a total NZD $7.3 Billion opportunity for CH4. CH4 believes that proposed New Zealand regulations for methane reduction can be dramatically exceeded with its proprietary solution.
- CH4 believe that better husbandry methods in 2023 could double yields and a parallel onshore program they have developed with world experts in Australia and New Zealand for onshore cultivation of seedlings is expected to increase bromoform content in young “seedlings” by up to 5 times.
- CH4 South Australia
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