Asparagopsis is a blood-red native species of seaweed found in Tasmanian waters that grows year-round in the cooler temperatures of the island's surrounding oceans.

This species, when eaten by cows, sheep and other ruminative digestive animals, has been found to produce a bioactive compound in their guts that both prevents the formation of the greenhouse gas methane and increases growth rate in animals.

It is a key ingredient in livestock supplement FutureFeed, made by the Commonwealth Scientific and Industrial Research Organization, which now has the backing of large investors such as Woolworths.

The only place in the world where it is commercially grown is the East Coast of Tasmania, where start-up Sea Forest is developing its new, environmentally sustainable aquatic business.

The company has been working in conjunction with researchers from the University of Tasmania, looking at how best to cultivate, grow and harvest the red algae at its pilot facility in Triabunna.

Sea Forest chief executive Sam Elsom said it will develop a 100 hectare marine lease, where the algae is grown on long-lines in ocean water, as well as a six hectare land-based lease, where the seaweed circulates around a raceway pond that uses filtered ocean water.

He said when this Triabunna site is in full operation Sea Forest plans for a second 100-hectare marine lease and six hectare land lease at Dunalley.

If these sites are successful a further expansion of a 1800 hectare marine lease could be developed at a separate site in Tasmania.

"These are bold plans but the industry is really excited about using this product ... we are well positioned to support the short-term needs of the Australian and New Zealand beef and dairy industries.

"We will also be creating a heap of new jobs in Tasmania, up-skilling people into seaweed aquaculture, which is a growing industry globally ... and Australia especially has a lot of potential to grow in this space."

The Australian Seaweed Industry Blueprint, released this month by Agrifutures Australia, found that seaweed could develop into a $100 million industry over the next five years, and has the potential to be worth $1.5 billion in two decades.

Australia Seaweed Institute's Jo Kelly said this could create 9000 jobs, and greatly reduce domestic greenhouse gas emissions. However, the Blueprint noted growth will rely on acceptance of seaweed as a food for humans and animals, and supportive regulatory approvals.

Mr Elsom said Sea Forest began cultivating in November 2019.

"We got a permit to collect a small amount of wild grown asparagopsis and we will be growing and cultivating that small amount into a large amount. We will not be relying on natural seaweed stocks and populations," he said.

"There are no commercial farms for asparagopsis so every step of the way we have been pioneering the way forward.

"Our ultimate goal is to create significant impact on emission reductions, to revolutionise the meat and livestock industry, helping them to put carbon neutral food products onto supermarket shelves, and to build a sustainable aquaculture business."

When Sea Forests' first two land-based waterfront sites reach full operation they will be producing 700 tonnes of dried product each year and a further 300 tonnes from its two marine leases.

A further 2700 tonnes of dried product would be produced at its 1800 hectare marine farm site, yet to be identified.

"This is a natural product, essentially a dried seaweed that is fed at .2 per cent of the animals' diet, so it is a very small dose which is like giving them a Vitamin C tablet."

Mr Elsom said the power of this seaweed was first discovered in Canada by accident, when a farmer who grazed cattle in both shore-line and hillside paddocks saw differences in his animals.

"The farmer saw that some of his cattle were eating washed up seaweed from the shoreline, and that these cattle were performing better than cattle grazed in different paddocks," Mr Elsom said.

"A researcher started looking at the science and found that the seaweed was having an impact on the gut health of the animals ... this started seven years of research looking at over 20 strains of seaweed and its impact on methane production in cattle.

"When they tested the asparagopsis they first thought that their apparatus was broken because their instruments were picking up no methane emissions. When they reran the trial, they found that it was responsible for an almost complete abatement of methane."

Mr Elsom said the algae reacts at the final stage of an animal's digestion producing an enzyme called Bromoform.

"It reacts with Vitamin B12, inhibits the creation of methane that would otherwise be expelled [through burping] and instead converts into energy which the cow uses to grow and increase its productivity.

"The cows grow fatter faster and the farmers are able to produce more with less input and resources. So there is a greater profit for farmers and an amazing environmental impact."

For Mr Elsom it is the environmental benefits that are his driving force.

"By farming seaweed you get the added benefits of seaweed photosynthesis, where the plant absorbs carbon from the water. Most carbon dioxide is absorbed into the ocean, and so by growing large amounts of seaweed you also sequester large amounts of CO2," he said.

"We not only have this positive environmental impact from farming seaweed, but also this methane abatement story when we feed it to our farmed livestock."

He said he hoped to seek support from the state government "to assist in the development of an environmentally positive business providing Tasmania investment in jobs and education in a new and developing seaweed industry".

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