AgriZeroNZ has invested US$13 million (NZ$23m) in a US methane vaccine developer and a New Zealand-based seed-treatment company.
The US$10m investment into ArkeaBio is its third-largest investment in the Boston-based company, bringing its total backing to US$19.5m.
ArkeaBio said the new funding should take the company through to commercial launch.
The new funding will support trials in lactating dairy cows in NZ to gather data needed for regulatory approval. ArkeaBio is expecting to launch its vaccine in NZ in 2028.
ArkeaBio chief executive officer Frank Wooten said the company’s first vaccine targeted a methane reduction of about 15% lasting at least three months.
“We see a clear pathway to deliver greater methane reductions and longer-lasting impact, with the ultimate goal being a vaccine that lasts for 12 months.”
AgriZeroNZ stated that ArkeaBio is the first company to achieve proof of concept for a methane vaccine. Trials at Texas A&M University showed the vaccine could reduce methane emissions in cattle.
The vaccine, derived from recombinant DNA technology, stimulates a cow’s immune system to generate natural antibodies to target methane-producing microbes in the rumen.
Seeds for lower emissions
At the same time, AgriZeroNZ is doubling its investment into Palmerston North-based BioLumic with a further US$3m.
BioLumic treats seeds with ultraviolet light to activate various desirable traits without genetic modification.
AgriZeroNZ’s main area of interest is the company’s ryegrass programme, which includes increasing the lipid concentration.
AgriZeroNZ said that was based on a well-established link between higher-fat diets and lower livestock emissions.
BioLumic is targeting concentrations that could reduce methane emissions from pastoral animals by about 12.5%.
The company is planning to use the new funds to support more ryegrass trials with major seed companies in NZ, Australia and Europe.
BioLumic, together with Canterbury startup Leaft, has been named as one of Time magazine’s best inventions for 2026.
AgriZeroNZ is a public-private partnership investing in new companies developing technology to reduce agricultural emissions.
It has now invested more than $100m since it was established in 2023.
Earlier this month it announced that Farmlands and Alliance Group were joining the partnership, with another $117m added to its investment fund.
‘Staggering’ climate policy rollbacks
Meanwhile, a new international report has slammed the coalition Government for weakening NZ’s 2050 methane target, alongside other backtracking on climate commitments.
In its report subtitled “Three years of systematic climate policy rollbacks”, Climate Action Tracker (CAT) accused the Government of rolling back key parts of NZ’s climate policy framework.
“By any international comparison, the list of climate policy rollbacks is staggering.”
CAT found only comparable examples in the United States and Canada.
The report included criticism of the focus on new technologies, such as those invested in by AgriZeroNZ, which was established by the previous Labour Government.
In agriculture, the Government had nearly halved NZ’s 2050 methane targets and abandoned plans for future agricultural emissions pricing.
“It has instead shifted towards unproven mitigation technologies and market-led incentives.”
CAT’s report noted that the Emissions Trading Scheme (ETS) had been touted by the Government as NZ’s main tool for cutting emissions.
However, its repeated policy rollbacks had weakened market confidence.