Livestock emissions reduction startup Sea Forest’s shares soar on ASX debut

Tasmanian climate tech startup Sea Forest was embraced by investors, with its shares closing up 12.5% on debut after listing on the ASX.

The seven-year-old scaleup raised $20.5 million at $2 per share for a market capitalisation of $112.1 million, and rose as high as $2.42 before closing at $2.25.

Sea Forest (ASX:SEA) was founded in 2018 by Sam Elsom and Stephen Turner, developing a seaweed-based feed additive for cattle, based on Asparagopsis seaweed, to reduce livestock emissions.

As a startup it raised $41 million, including $34m in 2021, and counts world champion surfer Mick Fanning and Go-To founder Zoe Foster Blake among its investors, as well as Tasmanian property billionaire Peter Gunn’s PGA Investments, environmentalist Rob Purves, and Macquarie Infrastructure and Real Assets, which backed the 2021 raise to build out a 1800-hectare marine lease at in Spring Bay in Tassie with a land-based seaweed farm and processing facility.

The register of top 20 shareholders reveals PGA is Sea Forest’s biggest shareholder with 6.69%, followed by feeder cattle business Carwoola Pastoral Co. (6.12%), and Elsom with 6.07%.

The closing price valued Elsom’s stake at $8.33 million.

Turner is also a substantial shareholder with 5.66%.

Your Edge Pty Ltd, owned by Kirsty Gold, who is married to private equity investor Peter Gold, and donated tens of thousands of dollars to independent MP Zali Stegall over the last three federal elections, as well as candidate Zoe Daniel in Victoria this year, holds a 3.68% stake, just ahead of the Grill’ed Innovation fund.

All up, the top 20 shareholders have just over 63% of the company.

Sea Forest’s product, SeaFeed, is now used on 118,000 cattle and the capital raised in the IPO is for new facilities in Queensland, NSW, Western Australia and South Africa, product innovation, regulatory approvals and increased marketing.

The company also promotes “Sea Fed Beef” Black Angus beef, grass-fed cattle using the SeeFeed supplement, which is claims lowers methane emissions by up to 67%. It’s served by chef Darren Robertson’s Three Blue Ducks in Sydney, and Byron.

Elsom, the 2025 Tasmanian Australian of the Year,  said the listing fulfils his vision of leading the decarbonisation of the agricultural industry by delivering innovative feed additive solutions that drive proven productivity gains for farmers.

“The funds raised will enable us to scale our operations, accelerate the commercialisation of SeaFeed, advance our R&D, and deepen our relationships with industry and community partners,” Elsom said.

“Our mission is clear, to combat climate change through the mitigation of livestock methane and to be an enabling force behind sustainable agriculture. On behalf of our leadership team, we want to thank all of our investors for supporting the IPO, as well as our team, customers and partners who made this pivotal moment for Sea Forest possible.”

The company also struck a strategic partnership with Belterra Agroflorestas, a Brazilian climate solutions company, to promote SeaFeed to its producers. Brazil is the world’s leading beef producer and  agriculture is responsible for 75% of the country’s emissions.

Others working on seaweed as a solution for methane reduction in livestock include CSIRO- and Woolworths-backed FutureFeed and South Australia’s CH4 Global.

In Australia the agriculture sector produces approximately 84 million tonnes of CO2 equivalent annually – around 15% of the country’s total greenhouse gas emissions. A majority come enteric (i.e. caused by digestion) methane emission, aka burps – the majority – and farts, from cattle and sheep.

Enteric methane emissions account for approximately 55 million tonnes of CO2 equivalent annually, or 10% of Australia’s total emissions.