Andrew Forrest, Woolworths, GrainCorp and the AGP Group have joined forces to commercialise a CSIRO super seaweed that could wipe out massive greenhouse gas emissions and make cattle grow faster.

The feed-additive product is produced from a red seaweed called asparagopsis, commonly found in Australian waters and known to occur off other continents.
A now significant body of CSIRO and other research shows adding even small amounts of the seaweed product to cattle diets can cancel out methane emissions through burping and flatulence while the reduction in digestion waste results in faster growth rates.
A potent quartet
In its hunt for investors, CSIRO had a preference for Australian companies. It found a potent quartet of backers after receiving about 80 creditable expressions of interest, including from major domestic and international livestock feed suppliers.
Dr Forrests Harvest Road, a major producer of cattle with more than 1.2­million hectares of grazing land and its own abattoir, is emerging as a global force in aquaculture and could diversify into growing seaweed.
By investing in this innovative feed supplement, we will reduce emissions and create pathways to achieve a net-zero emissions global economy,” he said.
“Harvest Road is committed to eliminate its own carbon footprint and ensuring agriculture can have a sustainable future.
Woolworths is Australia’s biggest retailer of beef alongside Coles and already sources product from Forrest’s Harvey Beef abattoir in Western Australia.
GrainCorp is a major supplier of wheat and barley to cattle feedlots and other meat producers, as well as having an international supply chain and seven port terminals on Australia’s east coast.
AGP is a big investor in renewable energy and sustainable infrastructure with expertise in carbon markets and managing carbon credits.
CSIRO in seeking investors wasnt just seeking capital. It was seeking expertise along with that capital.
Michael Battaglia, CSIRO research director
CSIRO research director Michael Battaglia declined to confirm the parties involved, but indicated an investment deal was close to being finalised and that CSIRO very happy with the mix of players.
“Our intention in selecting partners was to choose partners along the value chain who we thought would come together as a board for the investment and investors who could help accelerate this technology,” he said.
“CSIRO in seeking investors wasnt just seeking capital. It was seeking expertise along with that capital.
“That is a mode of investment for some of our technology that we are much more interested in these days can we, instead of just going through the traditional venture capital mode where we get capital and a lot of pressure, assemble a group of like-minded, like-motivated people with different skills to really accelerate on behalf of Australia technology we want to bring forward.”
CSIRO was only looking to raise $11 million from investors and putting in $2 million of its own money to kick-start Future Feed.
It is understood Harvest Road, Woolworths, GrainCorp and AGP will each emerge with stakes of about 20 per cent in Future Feed for relatively small outlays of $2.75 million.
The business will charge royalties to end users of the seaweed feed additive. Meat & Livestock Australia and James Cook University, which partnered with CSIRO on asparagopsis research, are also in line for a slice of royalty revenue.
The Future Feed business is also likely to manage the licences and the quality assurance around the product, which will be grown in seaweed farms before being turned into a totally natural feed additive.
Asparagopsis farming enterprises have already been springing up in Tasmania, Sweden, Vietnam and California in anticipation of heavy demand.
Forrest’s diversification continues
Dr Forrest, whose iron ore-based fortune runs to more than $20 billion, has declared his intention to become a major player in shellfish and fin-fish aquaculture and could also grow asparagopsis.
Alternatively his Harvest Road business could follow the strategy it used in investing in shellfish farming and buy out emerging asparagopsis producers.
Use of the seaweed additive opens the door to Woolworths and others being able to market carbon-free beef and dairy products.
Cattle producers such as Harvest Road could also reap a windfall through the emissions-reduction fund.
It is understood Harvest Road intends to use the seaweed product as soon as possible in an $80 million feedlot it is building near Moora in WA.
A 100-day field trial by CSIRO showed cattle with the seaweed added into their feed grew 20 per cent faster on average than those not given the additive.
The CSIRO team detected no greenhouse gas emissions from cattle on the most concentrated level of the bioactive ingredient in asparagopsis that prevents the formation of methane by inhibiting a specific enzyme in the gut.
The research has also indicated potential to reduce emissions from sheep.
However, the global cattle, beef and dairy industries are under most pressure over emissions of methane, a greenhouse gas 28 times more powerful than carbon dioxide.