Agtech startup Number 8 Bio swallows $7 million Seed round to cut livestock methane

Another startup hoping to tackle the problem of methane emissions from livestock has raised $7 million in a Seed round.

But rather than seaweed, Number 8 Bio is using synthetic biology to create a cost effective solution to dealing with cow burps.

The round was led by CSIRO-backed Main Sequence, with support from Breakthrough Victoria, which chipped in $1.7 million and The March Group.

This funds will be used to advance product development, scale up a manufacturing facility, and forge key commercial partnerships.

Number 8 Bio was founded in 2022 by Dr Tom Williams, and Dr Alex Carpenter and took part in the UNSW SynBio 10X Accelerator that year, winning the Positive Impact Award

Williams, the CEO, said their successful exploration of yeast has now evolved into advanced testing of synergistic ingredients and prebiotics, allowing them to optimise the product and reduce costs even further. 

“Our unique approach not only promises to reduce rumen emissions by up to 90% but also rumen productivity, making a significant return on investment for farmers possible,” he said. 

“We see methane abatement as an exciting opportunity – for farmers, animals, and the planet. We’re developing a feed additive that consistently decreases these emissions from livestock, helping the beef and dairy industries decarbonise and retailers reduce Scope 3 emissions.”

There’s been no shortage of startups hoping to tackle the problem using seaweed-based supplements, including Rumin8, which scored  $17 million Seed top up last year from the likes of billionaires Bill Gates and Twiggy Forrest. CSIRO got behind its own joint venture with Meat & Livestock Australia and James Cook University, FutureFeed, in a $13 million raise in 2020. A $90 million plant to produce methane-reducing cattle feed is being built in South Australia, while Sea Forest scored $34 million in 2021 for its seaweed growing farm in Tasmania in 2021.

But the problem the seaweed solution still faces is that its cost is still to high to deliver an ROI for farmers using it.

A two-pronged solution

Number 8 Bio is hoping to unlock improved productivity alongside methane mitigation with trials in collaboration with Queensland Animal Science Precinct (QASP) and the University of New England (UNE) showing it’s a cost-effective solution for the dairy and cattle industries.

The feed supplements will contain productivity modifiers that redirect the animal’s metabolic pathways towards growth-promoting compounds. This dual-action approach optimises the animal’s energy use, leading to increased production of meat, milk, and wool.

It’s also highly efficient, with one production plant can creating enough feed to supply Australia’s and California’s entire dairy and feedlot animal populations.

“We’ve designed our product alongside farmers to best suit all conditions, ensuring it makes both financial and sustainability sense,” Williams said.

“Our product variants are tailored for intensive and extensive operations, allowing for seamless integration.”

Alongside the production of methane-inhibiting feed additives, the company is also exploring ways to expand its core technology to enhance the profitability of fermentation processes. Number 8 is testing how they can replicate the low-methane fermentation process that occurs inside a cow’s stomach in anaerobic digesters, with the aim to make fermentation significantly cheaper and produce a range of carbon-negative food ingredients.

“We are also testing how we can replicate the low-methane fermentation process that occurs inside a cow’s stomach in anaerobic digesters, with the aim to make fermentation significantly cheaper and produce a range of carbon-negative food ingredients,” explains Dr Williams.

In Australia the agriculture sector produces approximately 84 million tonnes of CO2 equivalent annually – around 15% of the country’s total greenhouse gas (GHG) emissions. A majority come from what’s known as enteric (ie. caused by digestion) methane emission, aka burps – the majority – and farts, from cattle and sheep.

Enteric methane emissions account for approximately 55 million tonnes of CO2 equivalent annually, or 10% of Australia’s total emissions of 552 million tonnes.

As part of the investment by Breakthrough Victoria, Number 8 Bio plans to run trials with Agriculture Victoria at Ellinbank SmartFarm and has made a commitment to a research collaboration with Monash University. A regional Victorian manufacturing facility, post Series A funding, is also on the cards.

Cofounder Dr Alex Carpenter said their approach will not only reduce rumen emissions by up to 90% but also to enhance rumen productivity.

“We see methane abatement as an exciting opportunity – for farmers, animals, and the planet,” he said

“Our core focus is creating practical, cost-effective solutions that benefit farmers directly. This is why we’ve been committed to designing our product alongside farmers to best suit all conditions, ensuring it makes both financial and sustainability sense to decarbonise.

“Thanks to Breakthrough Victoria and our other investment partners we are able to continue to turn this mission into reality and help Australia transition to carbon-neutral food production.”

Breakthrough Victoria CEO Grant Dooley said their $1.7 million investment reflects a commitment to sustainable innovation.

“Their ‘Performance Digestion’ technology tackles the critical challenge of reducing livestock methane emissions while boosting productivity,” he said.

“We’re excited to support this groundbreaking solution, alongside Main Sequence, The March Group, and others, as we drive toward a more efficient and sustainable future in food production.”