Methane money: Investors target livestock climate tech, animal monitoring and waste-to-energy solutions

Investors see livestock systems as one of agriculture’s biggest opportunities for decarbonisation and productivity gains.
Investors see livestock systems as one of agriculture’s biggest opportunities for decarbonisation and productivity gains. (Getty Images)

Reducing livestock emissions is becoming an attractive opportunity in European agtech as investors back technologies capable of delivering measurable environmental impact while simultaneously improving farm economics

The latest example comes from UK start-up EcoNomad Solutions, which has secured £230,000 from the British Design Fund as part of a wider £400,000 funding round that also includes support from Innovate UK’s Investor Partnership programme and existing investor Beeches Group.

The funding will help the company expand deployment of its BioNomad® system, a decentralised anaerobic digestion technology designed specifically for small and medium-sized livestock farms.

The investment reflects recognition that smaller farms are often excluded from conventional sustainability technologies despite facing some of the greatest pressure to reduce emissions, manage waste and control rising input costs.

According to EcoNomad, livestock producers across Europe are facing a “triple challenge” of increasing fertiliser and energy costs, tightening slurry management regulations and growing pressure to reduce methane emissions.

Turning farm waste into renewable energy

EcoNomad’s BioNomad® system is designed to address all three issues simultaneously.

The technology captures methane that would otherwise be released into the atmosphere, converting farm waste into biogas for heating, electricity generation and cooking while also producing biofertiliser that can reduce dependence on synthetic fertiliser inputs.

For smaller livestock farms, the economic proposition is as important as the environmental credentials. The company estimates that a typical 50-cow operation could save thousands of pounds annually on energy and fertiliser costs, depending on usage patterns.

Founder and chief executive Dr Ilan Adler said the company’s mission is to make waste-to-energy technology accessible to farms traditionally priced out of larger anaerobic digestion systems.

“Small farms are under increasing pressure, yet they’re often excluded from the renewable energy solutions available to larger operators,” he said.

“The BioNomad® is designed to make waste-to-energy accessible, affordable and practical for even the smallest farms, helping them reduce emissions, lower costs and build resilience.”

The company already has systems operating on more than 10 farms in the UK, alongside installations in Africa and trials involving insect farms, food waste processing and integrated renewable energy systems combining biogas, solar and wind power.

EcoNomad’s longer-term ambition is to develop a fully automated plug-and-play system capable of accelerating adoption across the UK and European livestock sectors.

Feed additives attract fresh capital

Waste-to-energy is not the only livestock climate technology attracting investor attention.

Swiss start-up Sixteen44 is moving its methane-removal technology from research into commercial farm trials, aiming to prove that its solution can deliver measurable reductions in livestock methane emissions under real-world farming conditions while helping farmers meet sustainability targets.

In March, Swedish methane-reduction specialist Volta Greentech also raised 18 million SEK (around €1.7 million) in a funding round led by Swedish industrial investment group Axel Johnson.

The latest raise brings total funding secured by the Gothenburg-based company to more than 100 million SEK since its launch and will support the commercialisation of its next-generation methane-reducing feed additive, Lome®.

The product is designed to reduce methane formation inside the rumen by targeting methane-producing microbes while maintaining animal welfare and feed efficiency.

Volta Greentech believes the approach offers one of the most cost-effective ways of reducing agricultural greenhouse gas emissions.

Lome represents an important strategic shift for the business. Rather than relying on large-scale algae production, the company has developed a method that replicates the specific methane-reducing properties of algae in a more scalable and commercially viable form.

The company is currently preparing regulatory submissions to support a wider European launch.

Chief executive Fredrik Åkerman said the latest funding would help accelerate the transition from scientific research into practical farm deployment.

“With Axel Johnson as lead investor in this funding round, we strengthen both our financial foundation and our industrial partnerships as we prepare to bring Lome to market,” he said.

Animal monitoring emerges as a parallel growth market

Alongside emissions reduction technologies, animal monitoring and welfare technologies are also attracting growing interest.

Lancashire-based Hoofcount and engineering partner IMI are highlighting a 12-year collaboration that has transformed Hoofcount’s automated dairy footbath system from a start-up concept into technology now used on hundreds of farms in the UK and internationally.

While the announcement does not involve a funding round, it illustrates growing demand for automation solutions that improve animal health while reducing labour requirements.

Lameness remains one of the most costly challenges in dairy production, affecting welfare, fertility, milk production and herd longevity.

Hoofcount’s automated footbath system is designed to make hoof care more consistent while requiring less manual intervention from farm workers.

Engineering improvements introduced through the partnership have focused on reliability, reduced maintenance and improved system durability, all critical considerations for dairy producers facing labour shortages and increasing operational costs.

The next phase of development could prove particularly significant.

The companies are now exploring AI-powered monitoring systems capable of identifying individual animals through electronic ear tags and automatically detecting early signs of lameness.

If successfully commercialised, such technologies could move livestock monitoring beyond treatment and into preventative health management, allowing earlier intervention and reducing welfare and productivity impacts.

Europe’s microbiome scientists join the race

Further evidence of the momentum behind livestock climate innovation comes from the launch of Rumen-Innovate, a new €4.8 million European Union-funded initiative focused on reducing methane emissions through microbiome science.

Scheduled to begin in March 2027, the project will bring together 11 institutions and 19 research and industry partners from across Europe.

The programme will focus on understanding and manipulating the microbial ecosystems inside cattle and sheep.

Scientists believe these trillions of microorganisms hold the key to reducing methane production, improving feed efficiency and enhancing animal health.

Project coordinator Professor Chris Creevey of Queen’s University Belfast said the initiative aims to bridge the gap between scientific discovery and practical farm adoption.

“Rumen-Innovate represents an exciting opportunity to directly translate research into action, addressing some of the most pressing challenges facing ruminant agriculture,” he said.

By combining computational biology, animal science and on-farm innovation, the programme seeks to position Europe at the forefront of methane reduction research.

A new livestock investment category emerges

Taken together, the developments signal the emergence of a distinct livestock technology investment category centred on emissions reduction, animal health and farm resource efficiency.