Elanco and Royal DSM Partner to Reduce Methane Emissions

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Picture of Elanco and Royal DSM Announcing Partnership for Methane-Reducing Feed Additive

Elanco, a pharmaceutical company based in the US, has announced a collaboration with Royal DSM Corporation, a Dutch-based health and nutrition company, for a revolutionary methane-reducing feed additive for cattle called Bovaer. The alliance will help accelerate tangible, sustainable solutions in the US and support the Global Methane Pledge goal of cutting emissions by 30 per cent by 2030. 

Bovaer is a first-in-class methane-reducing product for beef and dairy cattle in Europe, Brazil, Chile, and Australia. According to more than 50 peer-reviewed studies and 48 on-farm trials conducted in 14 countries as part of its licencing in those countries, Bovaer reliably reduces enteric methane emissions by roughly 30% for dairy cows and significantly higher percentages for beef cattle.

DSM and Elanco plan to seek U.S. approval for the product to provide farmers, dairy and beef companies, and retailers with a solution to significantly reduce the carbon footprint of beef and dairy production, thereby supporting the animal protein industry's ESG efforts and ensuring the planet's long-term sustainability.

According to published studies, by feeding a million cows, Bovaer reduces methane emissions by the same amount as planting 45 million trees or removing 300,000 cars from the road.

If approved, the product would contribute to a significant and immediate reduction in the environmental footprint of meat and dairy products, helping to achieve the Global Methane Pledge's goal of reducing emissions by 30% by 2030.

The strategic collaboration is expected to allow both parties to maximize the product's commercial opportunity in the United States if it is approved and double Bovaer production capacity globally.

Elanco will be in charge of the FDA approval process, commercialization strategy, product supply in the United States, and supporting DSM supply in international markets.

Elanco will analyze and evaluate regulatory submissions and manufacturing options to bring Bovaer to the market in the United States as soon as practicable.

The state of Indiana, for example, has already said that it wants more manufacturing to come to the state, and it is still working on public-private partnerships to help the state's agriculture industry grow.

Jeff Simmons, president and CEO of Elanco, said:

"We are excited to partner with DSM to start the process of bringing this game-changing innovation to U.S. livestock producers. It will further strengthen Elanco’s efforts to create the livestock sustainability market and the next era of value for farmers by adding to our efforts to reduce, measure and monetise emission reductions, including Experior, Uplook and Athian. We are eager to work with regulators to bring a unique innovation like DSM’s Bovaer to the U.S. market as quickly as possible to support farmers and positively impact the climate crisis.”

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of Royal DSM, said:

“This agreement marks an important milestone for DSM, Elanco, and the climate change mitigation efforts of the U.S. We believe Elanco, as a company that shares our determination to revolutionise the sustainability of the cattle industry, is the ideal partner to help us increase and accelerate the total impact of our game-changing feed additive by bringing us closer to customers across the U.S. This alliance will help us realise Bovaer’s potential as a powerful solution with a significantly positive impact on the planet. In addition, and fully aligned with our purpose-led performance-driven strategy, the alliance enables us as DSM to monetise our long-term innovation faster.”

Elanco expects Bovaer to have blockbuster annual revenue potential above $200 million in the US market by mid-decade, with an estimated global market opportunity for livestock methane reduction of $1 billion to $2 billion. Elanco's previously announced financial commitments are not likely to be affected by this agreement.

Source: Environment + Energy Leader


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