Why CH4 Global is betting on ponds to slash livestock methane emissions

Methane, a potent greenhouse gas with more than 80 times the warming potential of carbon dioxide over a 20-year period, is a major contributor to climate change. Livestock farming, particularly cattle and sheep production, is responsible for at least 30% of human-driven methane emissions globally. As the world grapples with the urgent need to reduce greenhouse gas emissions, finding ways to mitigate livestock methane is crucial.

At CH4Global, we've set out to make a meaningful dent in this problem. Our solution centers on Asparagopsis seaweed, which has been shown to reduce methane emissions from cattle by up to 90% when used as a feed supplement. By cultivating Asparagopsis at scale and processing it into our flagship feed additive, Methane Tamer (TM), we aim to provide a powerful tool for the livestock industry to dramatically cut their methane emissions.

To deliver Asparagopsis and Methane Tamer at the scale needed to impact global livestock emissions, we've pioneered a novel pond-based growing system. The business decisions that led us to choose ponds began with a simple yet profound question: How do we scale a business that is inherently capital-intensive? The challenge was clear. Investments in seaweed cultivation, whether in the ocean with natural variability or in controlled environments like tanks, entail significant capital expenditure and long lag times before realizing returns. Ponds emerged as a solution that balances these factors effectively.

Our patented pond-based cultivation system can be built at around one-tenth the capital cost of shore-based tanks. The installed cost for our ponds is just under $2 per liter, while tanks can cost anywhere from two to five times that amount. This significant reduction in capital expenditure allows us to scale our operations more rapidly and cost-effectively. Crucially, these cost efficiencies allow us to not only offer Methane Tamer to farmers at a price point where they can realize a net economic benefit without relying on subsidies, but also to maintain sufficient profitability to attract large-scale project financing.

Optimizing Growth Conditions for Maximum Efficiency

One of the key innovations in our ponds is the use of polytunnel systems to cover them, allowing us to precisely control essential growth parameters such as light, temperature, and nutrient levels. By minimizing the risk of contamination from windblown spores and other environmental factors, we can ensure optimal growth conditions for the Asparagopsis seaweed.

Moreover, our ponds are strategically located in temperate zones, where moderate temperatures provide an ideal environment to grow Asparagopsis. This careful site selection enhances productivity and reduces the need for artificial lighting, which can be energy-intensive. By harnessing natural climatic conditions, we can grow Asparagopsis more sustainably and cost-effectively.

In addition to these operational advantages, ponds also offer lower operating costs compared to tanks. Each of our ponds can produce about half a metric ton of seaweed per harvest, which is a manageable amount to process at an industrial scale. In contrast, tanks, which typically have 1/20th the volume of our ponds, yield much smaller quantities of seaweed, requiring many more unit operations and driving up processing costs.

Compared to ocean-based cultivation, ponds provide a much more controlled and predictable environment. Open ocean farming is subject to a host of challenges, including weather disruptions, predation, disease, and competition from other species. The logistical and health and safety challenges of deploying and maintaining offshore seaweed farms also add significantly to their operating costs. Our pond system allows us to optimize growth conditions, minimize risks, and streamline operations.

From Concept to Reality: The EcoPark Takes Shape

We are currently constructing our first full-scale production facility, known as an EcoPark, on the Eyre Peninsula in South Australia. The facility will house around 80 individual seaweed ponds when complete. We expect the first set of ponds to be seeded with Asparagopsis later this year and harvested a few months after that.

With ponds enabling us to produce Asparagopsis and Methane Tamer cost-effectively at scale, CH4 Global is well-positioned to deliver gigatonne-scale climate impact by the end of this decade. Indeed, we estimate that adoption of Methane Tamer by just 10% of the global cattle herd would deliver a climate benefit equivalent to taking 100 million cars off the road.

At CH4 Global, we're committed to urgently scaling our climate solutions to meet the profound challenge of global methane emissions. Our innovative pond cultivation system is central to this mission, enabling us to grow Asparagopsis and produce Methane Tamer with maximal cost-effectiveness, scalability, and impact. As we look to the future, we're excited to expand our operations globally and work with partners across the agrifood industry to drive a step change in methane emissions. The climate crisis demands nothing less.