Pond Technologies (CSE: POND) has entered into a fresh research agreement. The arrangement, entered into with BioCarbN Inc and a subsidiary of Associated British Foods, will look to examine the potential ability of certain strains of algae to reduce carbon emissions in cattle.
Specifically, the research arrangement will see the group of partners examine whether certain strains of algae, when included within animal feed, is able to reduce enteric methane emissions from the cattle. The interest for producers in the program meanwhile is centered around the fact that current estimates suggest 10% of animal feed energy is utilized in methane production, with such potential discoveries effectively resulting in feed efficiency and cost savings for producers.
Such emissions are currently believed to be the largest source of emissions from beef and dairy value chains, while being a a significant contributor to global methane emissions. In terms of carbon dioxide equivalents, the category is believed to produce 2 billion metric tonnes annually in equivalent emissions, or roughly the same emissions as India.
“We are extremely excited to sign this research agreement with BioCarbN, in collaboration with AB Agri and another forward-thinking major agriculture company. The global cattle feed market is over $75 billion USD annually and this represents another step towards commercializing our algae growth platform into globally important markets, across numerous applications,” commented Grant Smith, CEO of Pond Technologies on the announcement.
Provided the research proves successful, the partners intend to push forward with commercial production of a feed ingredient that is based on microalgae and uses Pond’s algae growth platform.
Pond Technologies last traded at $0.255 on the TSX Venture.
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