CANBERRA, Aug. 21 (Xinhua) -- Australia's national science agency on Friday announced the formation of a new company to commercialize a livestock feed additive that significantly reduces methane emissions.

The Commonwealth Scientific and Industrial Research Organization (CSIRO) announced the establishment of FutureFeed Pty Ltd to take a livestock feed additive made from the seaweed Asparagopsis to market.

Trials of the seaweed additive in Australia and the United States have found that it reduces the amount of methane emitted by beef and dairy cattle by 80 percent.

"This is a game-changer, not only for livestock production but also for our environment, with the potential to create an entirely new industry while supporting jobs in the Australian agriculture sector," Karen Andrews, Australia's minister for industry, science and technology, said in a statement.

"This is an example of what can be achieved when industry and researchers work together to solve real-world problems."

The company is aiming to have commercial volumes of the feed additive supplied into the Australian market by mid-2021 with international markets to follow.

CSIRO researchers estimate that 10 percent of the global beef feedlots and dairy industries adopting the feed additive would reduce greenhouse gas emissions by approximately 120 megatonnes per year, equivalent to taking around 50 million cars off the road for a year.

The Asparagopsis species of seaweed produces a bioactive compound called bromoform, which prevents the formation of methane by inhibiting a specific enzyme in the gut during the digestion of feed, according to CSIRO.

The organization also said in a statement last year that more than 20 percent of the world's entire total of greenhouse gas emissions came from livestock production, and in Australia, the contribution of methane emissions from ruminant livestock was approaching 10 percent of total greenhouse emissions. Enditem

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