Secures Additional Resources for Provectus Algae to Expand Methane-Reducing Seaweed Technology
Provectus Algae Raises Funding for Methane-Reducing Seaweed Feed Additive
Provectus Algae, an innovative Australian company, has secured significant funding to scale its seaweed-based solution for reducing methane emissions in livestock. The company's flagship product, Surf 'n' Turf®, is a powdered whole seaweed (red algae Asparagopsis) feed additive that has been proven to reduce enteric methane emissions by up to 98%.
The $12.6 million Series A round was led by At One Ventures, with participation from Methane Mitigation Ventures, Mort & Co (a major Australian beef lot feeding company actively involved in trials), and Hitachi Ventures. This funding will be used to scale an indoor seaweed growing platform, aiming to transform the economics of producing Asparagopsis for methane reduction.
The bioreactor technology, a scalable, modular, biomanufacturing platform, can produce Asparagopsis more rapidly than other land-based growing systems. Provectus Algae's technology allows for precise control over gene expression, leading to increased production of target substances. The dry powder form can be mixed into various feed formulations and remains stable at ambient temperature, making it cost-effective and scalable.
Charlie Mort, executive chairman of Mort & Co, has partnered with Provectus Algae to conduct trials of their product. The goal is to achieve a daily production capacity of 30-50,000 animals by early next year, and to deliver significant industrial volumes into the Australian market by the end of 2023, with plans for global expansion.
Provectus Algae has secured a license from Future Feed, which holds the global IP rights to Asparagopsis seaweed technology developed by CSIRO, Meat and Livestock Australia, and James Cook University. This licensing agreement strengthens Provectus Algae's position as a leader in the field of seaweed-based solutions for livestock methane reduction.
Other key players in this field include DSM, a large agritech company that has secured EU authorization for its methane-reducing feed additive branded as Bovaer®. CH4 Global is scaling its Asparagopsis feed supplement to reduce methane emissions from cattle burps, while Swedish startup Volta Greentech develops red algae-derived supplements to accelerate methane reduction in livestock.
However, the challenge lies in converting the value proposition of carbon credits into actual revenue at scale. This requires validation, tracking, measuring, and a bulletproof monitoring and verification process. The carbon market needs to have confidence in what's being delivered to accept and value the carbon credits generated by Provectus Algae's technology.
In summary, Provectus Algae stands out for its seaweed-based innovation, Surf 'n' Turf®, focused on red algae Asparagopsis, backed by strategic partnerships and significant capital to scale production and adoption. The company's bioreactor capacity is currently approximately 110,000 liters and is expected to increase to around 260,000 liters by September. Provectus Algae believes that Asparagopsis is the right solution for significant methane reduction and potential performance gains in animals, among various potential technology solutions.
The funding secured by Provectus Algae will be utilized to develop and scale its bioreactor technology, a key component of its seaweed-based solution for reducing methane emissions in livestock. This technology allows for rapid production of target substances, such as red algae Asparagopsis, making it a promising candidate for large-scale adoption in the livestock industry.
Provectus Algae's innovation, powered by its bioreactor technology, holds potential for significant methane reduction and performance gains in animals, positioning it as a notable player alongside other agritech companies like DSM, CH4 Global, and Volta Greentech in the field of seaweed-based solutions for livestock methane reduction.
