Australian agricultural seaweed startup Immersion Group has secured financial backing from one of Japan’s largest seafood producers.
Nissui Corporation has claimed a stake in the Portarlington business, the company announced Thursday morning, in a move expected to expand the global reach of methane-busting innovations and establish a new pilot plant near Geelong.
Immersion Group is one of nine companies worldwide to hold a licence for FutureFeed, a CSIRO-backed livestock feed ingredient derived from the asparagopsis seaweed.
Studies show that processed asparagopsis can significantly reduce the methane emissions produced by livestock when it is added to their diet.
The hope is that introducing FutureFeed at scale will allow the livestock industry — one of the most significant contributors to methane emissions worldwide — to lower its overall greenhouse gas output.
The commercial opportunities are also significant: as Australia and world powers like the USA pledge to lower methane emissions by 30% by 2030, industry body Agrifutures estimates specialised seaweed cultivation could become a $1.5 billion industry.
Founded in 2021 by Dr John Statton and Scott Elliott, Immersion Group joins startups like Sea Forest in the race to produce and process asparagopsis at scale.
Tasmania’s Sea Forest conducts both marine and on-shore farming, but Immersion Group is prioritising its own seedling cultivation process and “highly efficient land-based aquaculture system”, Nissui Corporation said in a statement.
Speaking to SmartCompany, Elliott said Immersion Group is championing a “premium” product, with on-shore cultivation giving the startup greater control over the seaweed’s growth.
Last year, flooding swept debris and nutrients into the Port Phillip Bay catchments during a key harvesting period, Elliott said, further convincing the enterprise of the benefits of on-land cultivation.
“We have an ability to manipulate everything from temperature, through nutrients, through to pH, and other variables to ensure we have optimal growing conditions 24 hours a day,” he said.
“We can’t simply do that with natural systems.”
While a premium product may result in premium meat prices in the supermarket, Elliott said consumers are already showing a willingness to pay for meat and dairy products with a lower carbon impact than traditional offerings.
The existing premium positioning of wagyu beef in Australia and Japan may assist that effort, he added.
The funding will allow Immersion Group to construct and rapidly scale a new pilot plant in the Geelong region.
Test sales will begin in 2024, introducing FutureFeed to Japan’s massive livestock market.
The precise terms of the multimillion-dollar investment were not disclosed, but it is understood creating the new pilot facility will cost between $3 million and $5 million.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
