The build is supported by Scottish Enterprise.
The announcement was made at COP26 in Glasgow today.
The company’s Dalry manufacturing site has been in operation for over 60 years; it produces micro-nutrients, and is currently the only Western producer of vitamin C.
In September, Bovaer was approved for use in ruminant feed in Brazil and Chile, the first market authorizations for the feed additive. DSM has filed for registration in a number of other markets and expects further approvals for Bovaer in the EU, Latin America and Oceania over the coming months.
The company said it has enough commercial product volumes of the product for near term market development. However, to prepare for anticipated further scale up in the next years, a new production facility is required, it added.
Initial work on the plant has already got underway, with it set to be operational in 2025.
Impact of methane emissions reduction
Reducing methane emissions is crucial to reach the Paris Agreement target of maximum 1.5 degree warming, especially since methane’s warming effect is shorter lived and much more potent than carbon dioxide, stressed the Dutch company.
“Therefore eliminating methane will pay off right away. Experts at COP26 have emphasized the great impact additional focus on methane emission reduction can have, which was also expressed in the recently announced global pledge aiming at reducing methane emissions by 30% by 2030. Amongst other things, methane is emitted from cows – over 50% of emissions from milk production comes in the form of enteric methane emissions.
“Bovaer is a feed additive for cows which consistently reduces enteric methane emission by approximately 30% for ruminants. The endeavor to develop Bovaer encompassed over 10 years, 45 on-farm trials in 13 countries across four continents, and more than 48 peer-reviewed studies published in independent scientific journals.”
Nicola Sturgeon, first minister of Scotland, said that methane reducing feed additives are a crucial part of the solutions that the agriculture sector needs to deploy towards achieving climate ambitions. “This multi-million pound investment will make Scotland the home of this innovative product and highlights that Scotland is leading the way in delivering a net zero future.”
Last week saw, JBS, one of the world’s largest food companies, sign a deal with DSM to implement a development program based on Bovaer, with the goal of reducing enteric methane emissions from beef cattle.
The companies will jointly develop the implementation of the feed additive in that production chain.
The objective, they said, is to promote a transition of the global beef industry, to obtain, through nutrition, "a safe path" to reduce methane emissions.