Chipotle's Investment in CH4 Global Promises a Greener Future for Dairy and Beef Production

A recent investment by Chipotle Mexican Grill into startup CH4 Global marks a significant boost in the fight against emissions fr om beef and dairy production. The fast-casual chain announced in January an undisclosed investment in CH4 Global, the company behind Methane Tamer, a feed additive derived from red seaweed known as asparagopsis. This additive is said to reduce enteric methane emissions by up to 90 percent, targeting the powerful greenhouse gasses emitted by cattle.
CH4 Global, based in Australia, has commenced operations at what it claims to be the world’s largest commercial facility for growing Asparagopsis in Louth Bay, South Australia. This facility will increase the additive's production scale to cater to 45,000 cattle daily by year-end. Concurrently, CH4 Global is forging partnerships to distribute its product across Asia, South America, and North America, driven further by Chipotle’s recent investment.
Competitive Landscape
Dsm-Firmenich is another key player with its rival additive, Bovaer, based on the chemical 3-nitrooxypropanol. Bovaer claims to reduce methane emissions by 30 percent for dairy and 45 percent for beef cattle. Already available in over 65 countries, Bovaer is gaining traction with its cost-effective approach, with costs pegged at around 26-30 cents per cow daily.
Economic Challenges and Solutions
Despite advancements, the adoption of these additives faces economic hurdles, particularly for small dairy farms in the U.S., wh ere profit margins are low. Potential solutions include food brands compensating farmers, as demonstrated by Bel Group’s practice of paying dairy operators extra for using Bovaer. Additionally, methane taxes and carbon credits could offer financial incentives. Denmark leads with plans to tax methane emissions by 2030, while the U.S. explores similar strategies.
CH4 Global suggests that a slight price increase in beef could render Methane Tamer profitable for farmers. Furthermore, carbon credit markets present opportunities for farmers to offset costs, with U.S. company Athian already involving over 150 farms in its initiatives.
Ultimately, the hope lies in the additives becoming self-sustaining. With cattle typically devoting energy to methane production, studies indicate that halting this process could reduce feed requirements, and thus, costs. However, experts like John Tauzel from the Environmental Defense Fund stress the need for further research to convince the agricultural community.
“The potential here is significant, and it’s encouraging to see investments from major players like Chipotle,” said Tauzel, as the industry looks toward a more sustainable future.