CH4 Global Inc. announced it has entered a Letter of Intent for a commercial offtake agreement with Ravensworth to supply the large-scale food producer with its proprietary methane-reducing feed supplement formulation for beef feedlot cattle
This agreement will enable both companies to make significant progress in reducing enteric methane, a major contributor to climate change.
As a gateway to validate CH4 Global's production capability for large customers, this engagement is a critical step on the company's path to reaching 150 million cattle by 2030. An operational and learning build-up period will take place in 2023, with production targeting up to 40,000 head of feedlot cattle at Ravensworth over the next year and a half.
Production will take place at one of a growing number of CH4 Global EcoPark commercial facilities that are based on its proprietary Asparagopsis platform, designed with sustainability and operational efficiency at the core. The relationship with Ravensworth will enable CH4 Global to continue to identify and exploit opportunities for operational and cost efficiency, the benefits of which it can pass on to its customers, thus preparing it for the next stage in its ambitious global growth plans.
"Ravensworth is a large-scale producer that supplies beef to customers worldwide, and like us, they have the vision and the commitment to make agriculture more sustainable. That's exactly what CH4 Global looks for in a partner," said Steve Meller, CEO and co-founder of CH4 Global. "We focus on where we can make the most impact, now. Our beef feedlot formulation is designed for seamless incorporation in feedlot operations, which is a gateway to agricultural methane reduction. Ravensworth is the perfect opportunity for us to enhance our production efficiencies prior to global expansion."
The star ingredient of CH4 Global's feed supplement formulations is Asparagopsis seaweed, proven to reduce enteric methane emissions in cattle by up to 90%. Ravensworth's implementation of the beef feedlot formulation is expected to dovetail with the kick-off the CH4 Global pilot carbon credit programme under the Verra standard, furthering the financial feasibility of its solution and making certified low-methane beef a reality.
CH4 Global's methane-reduction roadmap includes reaching 150 million cattle—10% of the world total—on all six habitable continents, which will prevent the emission of 1 gigaton of CO2 equivalent. Plans for 2023 and 2024 are focused on rapid commercial growth in Australia through Asparagopsis production by its regional subsidiaries, CH4 Australia and CH4 Aotearoa. Work is also well underway in North America to develop Asparagopsis production capacity there. In 2024, CH4 Global will focus on expanding into the remaining habitable continents and the dairy sector, to make a global impact on climate change at scale with urgency.