)
A Noosaville-based startup that began in a one-person lab in 2018 has just secured US$12.6 million ($19.2 million) as Provectus Algae plans scale up production of its cattle feed supplement Surf'N'Turf containing seaweed that has been proven to improve animals' digestion and reduce methane generation during enteric fermentation.
The funding boost for Provectus Algae comprises US$10.1 million in Series A financing and an additional US$2.5 million in grant funding from the Australian government.
The round was led by Sydney-based At One Ventures and included Methane Mitigation, Mort & Co and existing shareholders such as Hitachi Ventures, among others. At One Ventures founding partner Tom Chi will join the Provectus board of directors.
With its AI-enabled biomanufacturing technologies and proprietary precision photosynthesis process, Provectus Algae aims to discover, develop and produce algae-based products at scale, controlling the expression of target compounds for step-changes in productivity and cost of goods.
Following the latest liquidity injection, the company claims it will perform the world’s largest pilot trials for an algae-based feedstock for ruminant livestock, and supply large quantities of the feed supplement to the market.
"Animal agriculture generates more emissions than any other industry, and Provectus Algae's high-yield production offers an economic pathway to substantially solve for these emissions while improving the livelihoods of farmers and ranchers," says Chi.
Mort & Co executive chairman Charlie Mort explains that as one of Australia's largest lot feeding managers, his company has a responsibility to lead the way in finding effective methane reduction solutions for the commercial beef industry.
"The team has been actively involved in testing various feed additives as part of its ongoing commitment to improving sustainability and animal welfare," Mort says.
"With the ability to scale production and tailor products for our animals and operations, we have partnered with Provectus Algae to conduct trials of their product designed to reduce methane emissions and increase cattle performance.
"Achieving increased performance alongside the reduction in methane will provide great opportunity for the industry and we are eager to be a part of this journey."
Provectus Algae CEO and founder Nusqe Spanton says he is incredibly proud of what the team has built despite challenging headwinds in the biotech sector.
"This milestone is a testament to our team’s determination and their desire to deliver lasting advancements in sustainable biomanufacturing," he says.
"With Tom Chi coming aboard and Mort & Co’s strategic backing, our team has become even stronger as we scale the world’s best methane-reducing feed supplement."
)
