NZGIF has made a $2.5 million equity investment in Ruminant BioTech (RBT), an innovative agri-tech company that has developed a sustained release methane inhibitor for livestock which is designed to achieve significant methane reductions.
This investment will help accelerate the growth of a company developing decarbonisation solutions for our largest emitting sector – agriculture.
NZGIF Chief Executive Craig Weise is excited about the potential of Ruminant BioTech’s solution. “Almost half of New Zealand’s greenhouse gas emissions come from agriculture, and methane from ruminants accounts for 75 per cent of these emissions. Yet the agriculture sector has proven to be one of the most difficult to decarbonise to date.”
“Ruminant BioTech is developing a solution that could directly reduce methane emissions from livestock by an impressive 70 per cent. NZGIF’s investment will help them accelerate their research and development programme, set up pilot manufacturing and get their product to market faster,” Mr Weise says.
The investment has also attracted significant private co-investment, with NZGIF investing alongside several domestic and offshore investors as part of a recent capital raise conducted with assistance from Northington Partners. Co-investors include the US-based climate-focused VC fund Regeneration.VC and the NZ-based Centre for Climate Action Joint Venture investment fund.
Ruminant BioTech has developed a slow-release bolus device that delivers targeted doses of methane inhibitor (a synthesised, naturally occurring organic compound) over a sustained period. If successful, the company could deliver a 70 per cent methane emission reduction per treated cow over the course of six months.
“This is our first investment in the agriculture sector that specifically targets methane emissions. We are proud to support such an innovative New Zealand company working hard to create unique and effective solutions to major climate problems that will in turn benefit future generations,” Mr Weise said.
Ruminant BioTech CEO George Reeves says, “Our bolus solution is unique, scalable, and practical to implement in pastoral farming. It has the potential to deliver significant emissions reduction benefits for New Zealand’s agricultural sector.”
“Imagine the impact this could have on New Zealand’s agricultural greenhouse gas emissions – we see it as a potential game-changer for the industry,” Mr Reeves said.
Ruminant BioTech is currently focused on its research and development programme. Once it has rolled out the product to the domestic market, Ruminant BioTech has ambitions to market its product globally.
ENDS
Media contact
Jenny Lackey, Chief of Corporate Affairs
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021 340 847
About NZGIF
NZGIF is a green investment bank which was established in 2019 to facilitate and accelerate investment that can help to reduce greenhouse gas emissions in New Zealand. We are a long-term, mission-driven investor, providing innovative, flexible and tailored capital solutions to support decarbonisation initiatives across a broad range of sectors. As a limited liability company independent of government, we make independent investment decisions. NZGIF invests on a commercial basis; we do not offer concessionary finance. We invest in scalable companies, technologies and products that are commercial-ready and offer low carbon benefits for New Zealand.
NZGIF is not a registered bank. For more, see www.nzgif.co.nz
About Ruminant BioTech
Ruminant BioTech is an innovative New Zealand start-up that has partnered and collaborated with leading research organisations and stakeholders, including DairyNZ, the University of Waikato, Beef + Lamb New Zealand and Fonterra. The company is undertaking a rigorous clinical research and development programme with the goal of commercialisation and launch in 2025.
For more, see https://www.ruminantbiotech.com/