Blog
Investing in methane mitigation technologies
How we are driving methane reductions on-farm through innovation and collaboration with AgriZeroNZ
22 Jan 2025
3 min
Fonterra's Climate Roadmap outlines emissions reduction targets for 2030 and an ambition to be net zero by 2050. Reducing methane from cows in a pasture-based farming system is our biggest opportunity. As part of our action plan, we’re contributing funding to cutting-edge technologies to tackle methane emissions - the most significant source of on-farm emissions.
One of the cornerstone partnerships of this effort is AgriZeroNZ, an industry-government partnership established to accelerate the development and delivery of solutions to reduce methane and nitrous oxide emissions. As a founding member of AgriZeroNZ, Fonterra is contributing up to NZD $50 million over four years to invest in early-stage companies around the world doing groundbreaking research and development, and to get tools to New Zealand farmers.
Since being established in February 2023, AgriZeroNZ has committed over NZD $38 million* to a growing portfolio of novel technologies designed to reduce emissions in a pasture-based farming system. Below are some key investments making strides toward scalable, impactful solutions.
Slow-release methane inhibitor
AgriZeroNZ has committed NZD $5.8 million to Ruminant BioTech to advance the commercialisation of a methane-inhibiting bolus designed for New Zealand's pastoral farming systems. The biodegradable, slow-release bolus delivers a methane inhibitor in the animal's rumen for up to six months, with recent trials showing a 75% reduction in daily methane emissions over 100 days. With this funding, Ruminant BioTech plans to build its first manufacturing plant in New Zealand, aiming for market launch by late 2025 in Australia, followed by New Zealand pending regulatory approvals. Learn more.
UV light for low-emissions pasture
AgriZeroNZ is investing up to NZD $5 million in BioLumic, a New Zealand-founded agri-biotech company, to develop a low-emissions ryegrass pasture that enhances productivity while reducing methane emissions. BioLumic’s proprietary UV light treatments, which unlock genetic potential in seeds, have already delivered double-digit yield gains and improved disease resistance in 12 crops. This funding will enable the application of BioLumic's technology to ryegrass, targeting a 2-3% increase in lipid content to reduce methane emissions by over 12%. Learn more.
Methane vaccine development
AgriZeroNZ has invested NZD $9.9 million in U.S. ag-biotech start-up ArkeaBio to accelerate the development of a methane vaccine for ruminant animals, particularly cattle. ArkeaBio, recently raised USD $26.5 million to expand trials and advance the vaccine's path to market. The vaccine could significantly cut emissions globally by enabling large-scale adoption. Learn more.
AgriZeroNZ has also invested NZD $9.5 million in Lucidome Bio, a startup which is accelerating the New Zealand methane vaccine development research programme. Learn more.
Enzymes and probiotics
AgriZeroNZ was the lead investor in a USD $3.75 million pre-seed funding round for Hoofprint Biome Inc, contributing NZD $4.2 million to support the development of a methane-reducing probiotic for ruminant animals. Hoofprint Biome Inc's technology uses patent-pending enzymes which aim to cut methane emissions by over 80% while increasing milk and meat yields by more than 5%. Learn more.
Dr. Jason Wargent, founder and Chief Science Officer of BioLumic, observing rice seedlings under UV light.
The journey toward scalable, commercially viable methane reduction technologies has its challenges. When looking at future solutions to mitigate methane, there are a number of factors we take into consideration. Solutions must not compromise animal well-being and milk quality and they must be practical and scalable for pasture-based farming. However, through partnerships like AgriZeroNZ and Fonterra’s commitment to innovation, we’re optimistic about the opportunities ahead.
At NZMP, we understand the critical role of sustainability for our customers’ with climate targets. We’re continuing to drive emissions reductions and efficiencies across our value chain and look forward to bringing our sustainability progress to every NZMP product you purchase.
*Figure correct as of 31st December 2024.
