Agteria Biotech, a Stockholm-based startup, is pioneering a novel approach to mitigating climate change by focusing on reducing methane emissions from livestock. The company has developed AB-01, a patent-pending feed additive designed to significantly lower methane production in cattle without affecting digestion. This innovative solution targets enteric fermentation, responsible for 5% of global greenhouse gas emissions, and is designed to be scalable, cost-effective, and adaptable to various feeding systems.
It is interesting to see an extraordinary equity injection in Agteria Biotech. The company has secured €6 million seed funding from to two public sector bodies and two private investment companies:
- This round was co-led by Industrifonden and AgriZeroNZ.
Industrifionden is a foundation established by the Swedish state in 1979 as a venture capital investor in early-stage growth companies in technology and life science sectors. AgriZeroNZ was only recently established in 2023 50% and is owned 50% by the New Zealand government and 50% owned by major agribusiness companies, - The two private investment companies are Norrsken Launcher and Mudcake.
Norrsken is a non-profit, non-partisan and non-religious foundation founded by Niklas Adalberth, co-founder of Klarna. Mudcake, is a microfund run by ex-founders dedicated to making the world “a better place for the next generation…
… shaping the way we produce, distribute and consume food”.
The funding will primarily be used to conduct essential safety studies for animals, consumers, and the environment, paving the way for regulatory approval of AB-01. This approval is crucial for Agteria to launch its product and expand its reach across the global agricultural markets.
Market Opportunity and Competitive Landscape
Methane is a potent greenhouse gas, 28 times more potent than carbon dioxide. Addressing methane emissions from agriculture is a critical priority in the global fight against climate change. The Nordic understand the importance of fighting change – Denmark has been the first government to introduce a greenhouse gas tax on agriculture – see forumNordic article here.
Agteria’s focus on cattle, a significant source of methane, represents a substantial market opportunity even though they face competition from various companies pursuing different approaches to reduce livestock methane emissions. These strategies can broadly be categorized as:
- Feed additives: Companies developing other feed additives that might target similar microbial activity in the rumen. This is arguably Agteria’s most direct competitive space, with innovation focusing on specific molecule effectiveness and cost-effectiveness.
- Breeding programs: Efforts focused on selectively breeding cattle with lower methane output. This is a longer-term approach, requiring significant time and investment.
- Manure management: Techniques for managing and treating manure to reduce methane emissions.
- Technological approaches: More advanced solutions involving genetic modification, precision feeding, or other technologies.
Photo: Dairy cows on a pasture in Ireland by Martin Abegglen from Wikipedia
