Asian giant signs seaweed cattle feed deal to cut methane emissions

A deal between an Asian beef giant and an SA tech firm marks a significant step in the commercialisation of the seaweed asparagopsis as a methane-reducing cattle feed supplement.

CH4 Global's Adam Main at Louth Bay in South Australia. Picture: Ben Clark

South Australian climate technology company CH4 Global will provide up to four million cattle with methane-reducing feed supplements as part of a deal with South Korean beef conglomerate Lotte International.

The partnership, announced on Wednesday, marks a significant step in the commercialisation of the seaweed asparagopsis, which can reduce methane emissions in ruminants – sheep and cattle – by up to 98 per cent.

It includes the initial supply to the Lotte-owned Australian feedlot, Sandalwood, near Dalby in Queensland, for up to 7000 head of cattle, primarily wagyu.

Before taking the product to South Korea for a target launch in 2025, the partners will conduct further studies to gain regulatory approval.

“From the start, CH4 Global has been focused on developing the products and partnerships that enable us to reach our critical goal of reducing methane emissions on a global scale,” CH4 Global chief executive and founder Steve Meller said.

“This partnership with Lotte is another step in the direction of achieving our vision and putting our groundbreaking feed additive in the hands of farmers and food producers worldwide.”

Asparagopsis has been developed as a commercial product by the CSIRO, Meat and Livestock Australia and James Cook ­University.

The CH4 asparagopsis seaweed production facility in South Australia. Picture: Serena Findlay

It is viewed as a frontrunner in the race to find solutions to tackle one of the most significant environmental and sustainability issues facing Australia’s livestock industry.

Production of methane in the rumen of sheep and cattle is responsible for about 42 per cent of Australian agriculture’s greenhouse gas emissions, which make up about 13 per cent of the country’s total emissions.

CH4 Global, which is headquartered in Henderson, Nevada but has a subsidiary in Adelaide, is one of five companies in Australia and New Zealand, and another four globally, licensed to supply the market with asparagopsis.

The company markets its product as Methane Tamer.

“As a company that operates a beef business in Australia, reducing methane gas is a very important ESG issue,” Lotte International chief executive Ki-ho Jeong said.

“Therefore, we are actively working together with CH4 to reduce methane gas generated at Sandalwood and supply low-carbon beef in the market. In addition, we are working to introduce CH4 Global products in Korea to support the Korean government’s goal of reducing methane gas emissions.”

CH4 Global estimated that the reduced emissions from four million cattle would be at least seven million tonnes of CO2-equivalent a year.

Governments around the world, including Australia, have signed up to US President Joe Biden’s worldwide pledge to reduce global methane emissions by at least 30 per cent by 2030.