Seaweed technology company CH4 Global has raised $45m to start building in SA

International investors have poured $45m into CH4 Global’s vision to use seaweed grown in South Australia to reduce carbon emissions from cattle.

Dr Steve Meller from CH4 Global. Picture: Brad Fleet

Seaweed technology firm CH4 Global will forge ahead with its plans to build a $26m production facility near Port Lincoln after raising $45m from international investors.

The Nevada-based company plans to build a CH4 Global EcoPark at Louth Bay on the Eyre Peninsula, where it will grow a red seaweed native to South Australia called asparagopsis, which has been found to drastically reduce methane emissions from cows and sheep.

The company also has facilities at Lonsdale, Arno Bay and in New Zealand.

The Louth Bay site will be developed in two stages costing $10m and $16m, the company said, and is expected to be able to produce enough seaweed to feed up to 30,000 cattle per day.

Carbon emissions from methane burped up by cattle and sheep are a major contributor to climate change, and CH4 says feeding the animals its Methane Tamer asparagopsis additive can reduce emissions by as much as 90 per cent.

“The 1.5 billion cows on the planet produce more than 150 million tons of methane annually -the largest single source of methane globally,’’ the company said on Tuesday.

Co-founder and chief executive Steve Meller said there was huge interest from investors and customers.

“We are receiving massive interest from governments, food producers and farmers of all sizes, fuelling our sense of urgency that we must act now to avoid a climate tipping point,’’ Dr Meller said.

“The pressure is on with new regulations and the desire to produce at a measurably lower impact.

“We are formulating our unique feed supplement products, Methane Tamer, to meet the specific needs of each cattle market segment, starting with feedlot operations, beef and dairy, as well as for grazing dairies plus eventually for remote and generally unattended cattle around the world.”

The new money brings the amount of capital raised by CH4 Global to $73m, with the latest fundraising round led by San Francisco-based DCVC and DCVC Bio, and Chicago-based Cleveland Avenue.

DVCV Bio managing partner Dr John Hamer, who is also on the CH4 board, said the company’s feed additive stands apart from other seaweed-based products.

“DCVC Bio is thrilled to back Steve and his exceptional team: they are ready to scale up a critical solution to climate change,’’ Dr Hamer said.

The Louth Bay facility is expected to generate dozens of local jobs once completed, and will include a seedling hatchery, the patented inland growing approach for asparagopsis, and harvesting and drying technology.

CH4 Global estimates that if 10 per cent of the world’s cattle were fed Methane Tamer, it would deliver more climate benefit than decommissioning 50-100 million internal combustion engine-driven cars.

Dr Meller is a serial entrepreneur and former chief innovation catalyst at Procter and Gamble and was also a senior advisor to the head of the CSIRO for three years.

CH4 Global was founded in 2018.

Originally published as Seaweed technology company CH4 Global has raised $45m to start building in SA