Elanco, a global animal health and nutrition company, announced that the FDA has deemed "Boaver," its methane-reducing feed additive, to meet safety and efficacy requirements for use in cattle after a multi-year comprehensive review.

Bovaer operates by inhibiting the enzyme in the cow's digestive system that produces methane. According to Elanco, this Boaver can reduce methane emissions from cattle by approximately 30% and provide a potential extra revenue source for farmers through carbon credit schemes.

Elanco develops Boaver through a licensing agreement with Royal DSM. Following the approval, the companies have expanded their partnership, with DSM now slated to expand the distribution of Bovaer across North America, including Canada and Mexico.

Analyst QuickTake: Enteric fermentation, the process in ruminants' digestive system that releases methane emissions into the environment, is one of the leading causes of methane emissions in agriculture. Notable startups developing methane-reducing feed additives include Blue Ocean Barns , Locus Animal Nutrition , Rumin8 , and Volta Greentech .