CH4 Global inks offtake deal with CirPro to scale low-methane beef exports

08 Aug 2024 --- CH4 Global, a climate tech company, has signed an offtake agreement with CirPro, an Australian protein player, to export reduced-methane beef produced in Australia, which could slash livestock emissions significantly. 

This offtake deal — under which CirPro will commit to buying a specific quantity of goods — will enable the companies to ramp up production of CH4’s Global’s red seaweed-based feed supplement, Methane Tamer, to meet global consumer demand for sustainably produced beef with a lower environmental footprint.

CH4 Global will increase the supply of its feed supplement to CirPro and its feedlot partners HB Rural and Mort & Co, eyeing the production of reduced-methane beef from a minimum of 100,000 cattle per day. A significant portion of this production will be exported to markets with increased demand for low-carbon meat.

“This offtake agreement is a milestone in the global beef industry and our mission to bend the climate curve,” says Dr. Steve Meller, CEO of CH4 Global. “By partnering with industry leaders like CirPro, HB Rural and Mort & Co, we are positioned to meet the burgeoning international demand for beef with a significantly lower carbon footprint.”

CH4 Global commercialized Methane Tamer in South Australian beef facilities earlier this year. The first shipment of the supplements is scheduled to reach new markets by the end of 2024. 

Tackling livestock emissions
Methane Tamer is a “100% natural” feed supplement derived from Asparagopsis seaweed, native to Australian coasts. It can reduce methane emissions from livestock by up to 90%. CirPro’s CEO, Reg Smyth, says it can also enhance productivity as observed in the trials — where animals recorded the same weight as the control group while consuming less feed.

The climate tech player is building a new facility, the EcoPark, north of Port Lincoln in South Australia to scale production, with operations scheduled to begin this fall.

In terms of commodities, meat production accounts for two-thirds of livestock-related emissions, according to the UN Food and Agriculture Organization. Additionally, the digestive processes of ruminant animals contribute to 30% of all human-related methane emissions, as per CH4 Global.

Carbon dioxide is more potent and long-lasting, but methane is more effective at trapping heat. It is 80 times stronger at heating the climate in the first two decades after release, according to Stanford University.

Governments worldwide are cracking down on excessive livestock emissions, with Denmark introducing a tax on greenhouse gas emissions from agriculture in 2030.