The Viability of Feeding Seaweed to Cows
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IIIEE Theses 2021:26 The viability of feeding seaweed to cows An assessment of the key opportunities and barriers facing the commercialization of factory-produced Asparagopsis taxiformis as a methane-reducing additive for dairy cows in Sweden. Cora Taylor Supervisors Håkan Rodhe Ana Maria Arbelaez Velez Thesis for the fulfilment of the Master of Science in Environmental Sciences, Policy & Management (MESPOM) jointly operated by Lund University – University of Manchester - University of the Aegean – Central European University Lund, Sweden, June 2021 Erasmus Mundus Masters Course in Environmental Sciences, Policy and Management MESPOM This thesis is submitted in fulfilment of the Master of Science degree awarded as a result of successful completion of the Erasmus Mundus Masters course in Environmental Sciences, Policy and Management (MESPOM) jointly operated by the University of the Aegean (Greece), Central European University (Hungary), Lund University (Sweden) and the University of Manchester (United Kingdom). © You may use the contents of the IIIEE publications for informational purposes only. You may not copy, lend, hire, transmit or redistribute these materials for commercial purposes or for compensation of any kind without written permission from IIIEE. When using IIIEE material you must include the following copyright notice: ‘Copyright © Cora Taylor, IIIEE, Lund University. All rights reserved’ in any copy that you make in a clearly visible position. You may not modify the materials without the permission of the author. Published in 2021 by IIIEE, Lund University, P.O. Box 196, S-221 00 LUND, Sweden, Tel: +46 – 46 222 02 00, Fax: +46 – 46 222 02 10, e-mail: [email protected]. ISSN 1401-9191 The viability of feeding seaweed to cows Acknowledgements This thesis was only possible thanks to the support of a great many wonderful people. Firstly to my MESPOM coursemates with whom I have weathered a pandemic. Thank you to you all for being the warmest group of collegues and friends imaginable. I never thought that 2 years was enough to create a new family, but it was. To my family: for being willing to tolerate ridiculous numbers of conversations about feeding seaweed to cows over tea, scones and norri-heavy sushi. Unfortunately, these conversations are not yet likely to stop. To Volta Greentech, an amazing company who fostered my interest in this innovative solution. Thank you for letting me spend time observing your business operations, for discussing Asparagopsis taxiformis over many phone calls and for your good company. I believe in this idea and wish you all the best in making it work. To my supervisors Håkan and Ana. This was not the most conventional of theses. Thank you for believing in my work, for connecting me with many interesting people and for providing advice and guidance through the process. Finally, but by no means least, thank you to all the interviewees involved in this research. I am extremely grateful for the generosity you showed in repsonsing to my questions and providing information and insights. Talking with such interesting and knowledageable people made this research process one that I loved. The viability of feeding seaweed to cows Abstract An estimated 6% of human greenhouse gas emissions are the result of enteric methane production by cows. Asparagopsis taxiformis, a semi-tropical alga, is one solution. Supplementation of this alga to cows at a small percentage of their daily intake has reduced their methane emissions by over 98% in trials. This success has led to multiple commercialization attempts globally, although no Asparagopsis taxiformis company has yet proved its viability. This thesis investigates the commercial viability of factory Asparagopsis taxiformis production, via a case study. The focal firm is Swedish start-up Volta Greentech, the first and only factory-based Asparagopsis taxiformis producers. This work draws on grounded theory and stakeholder theory perspectives to elicit key opportunities and barriers facing the case-study firm. Data was collected from interviews with 26 key external stakeholders and 7 team members, 2 multi-day observations of company operations, a workshop with the team and extensive literature and grey paper review. Three major barriers - production of Asparagopsis taxiformis, risks associated with Asparagopsis taxiformis and competition from other enteric-methane-reducing measures were identified and investigated further. Six short-term opportunities were also identified and investigated. These are political support, celebrity endorsement, a methane-reduction label for the Asparagopsis taxiformis-fed cow-products, collaboration with other algae experts, symbiotic production mechanisms in the factory and capitalizing on alternative uses of Asparagopsis taxiformis. This investigation concludes that Volta Greentech is a radical and innovative venture, and a useful model for understanding factory produced Asparagopsis taxiformis production. This case is used to highlight how and why support should be provided for such innovative ventures. Keywords: Asparagopsis taxiformis, methane-reducing additive, commercial viability 1 Cora Taylor, IIIEE, Lund University Executive Summary Methane produced by flatulent ruminants, especially cows, is a major contribution to anthropocentric greenhouse gas emissions. To meet climate targets, mitigating these emissions is recognised as an issue of high importance. One promising solution is the red algae, Asparagopsis taxiformis. The first trials were conducted on this alga in 2014, and the unprecedented methane reduction levels witnessed led to subsequent commercialisation attempts in Australia, the U.S.A. and Sweden. However, the recent status of research into this alga, as well as the novelty of producing and using it have raised problems for these companies and none are yet producing on a commercial scale. The research aim is to understand the commercial viability of factory-produced Asparagopsis taxiformis production. This is achieved via a case study. Swedish start-up Volta Greentech are the only company to have initiated production of the alga in this way. The commercial viability is investigated here through an assessment of the key barriers and opportunities facing the firm. This commercial viability assessment typology is based on a prior study by Vijn et al. (2020). Both the Vijn et al. (2020) study and this thesis use stakeholder perspectives to determine opportunities and barriers facing the use of Asparagopsis taxiformis. Stakeholder theory is used as the theoretical lens for understanding the value of this mechanism of assessment. Grounded theory is used to analyse empirical data. Analysing data in this way enabled the emergence of the opportunities and barriers from the bottom-up. The research questions investigated are as follows: Research Question 1 (RQ1): Is the factory production of Asparagopsis taxiformis for use as a methane reducing additive for dairy cows commercially viable in Sweden? Sub question 1 (SQ1): What are the key barriers for case-study firm Volta Greentech? Sub question 2 (SQ2): What are the key opportunities for case-study firm Volta Greentech? The research design employs an exploratory, case-based approach. This exploratory, single case-based approach was chosen as appropriate given that commercial success is highly complex and context dependent. Volta Greentech are also the only factory producers of Asparagopsis taxiformis. Data about the opportunities and barriers for the company was collected from interviews with 26 key external stakeholders and 7 team members, 2 multi-day observations of company operations, a workshop with the team and extensive literature and grey paper review. This data was coded iteratively according to grounded theory principles. The research results to RQ1 were determined through answering SQ1 and SQ2. The key barriers to the commercial success of Asparagopsis taxiformis were categorized in terms of severity of threat. The three major barriers were found to be the unprecedented and complex process of growing the alga, the risks associated with the intracellular bioactive compounds and the competitive presence of other enteric-methane-reducing options. The literature and stakeholder perspectives were sufficient for assessing the production and risk barriers. There were, however, minimal objective perspectives and published information on the competitive threat posed. Consequently, a framework was developed to comprehensively assess this barrier. Stakeholder perspectives and literature findings were used to comment on possible remediation of these barriers. The key opportunities to the commercial success of Asparagopsis taxiformis were selected in terms of their propensity for immediate or short-term impact. There were multiple linkages between these identified opportunities and, if initiated, they would likely be mutually reinforcing. These opportunities are political support, celebrity endorsement, a new funding mechanism, 2 The viability of feeding seaweed to cows collaboration with other algae experts, symbiotic production mechanisms and alternative uses of Asparagopsis taxiformis. Stakeholder perspectives and literature findings were used to comment on possible problems with these opportunities, as well as present recommendations for how the opportunity could be best exploited. The broader applicability of this research includes a commentary on the future commercial viability of factory produced Asparagopsis taxiformis, which is also partially valid for the