10172409Scaling Feed-Grade LanolinActiveCollaborative R&DInnovate UK**Welsh Wool into Premium Feed Ingredients** **The Challenge** Welsh farmers often pay more for shearing than they receive for shorn wool, a significant business problem. Current wool processing wastes valuable lanolin as expensive sludge, costing the industry £19.2 million annually (Standard Wool, 2025). Meanwhile, the UK imports £90 million worth of soy and palm oil for livestock feed annually, driving deforestation and creating supply chain vulnerability that threatens food security (DEFRA 2022). **Our Innovation** LanoTech has developed breakthrough extraction methods that recover significantly more grease from wool than the industry standard---a 4x productivity improvement. This project refines this into feed-grade lanolin with higher energy density than soy, creating three commercial products from one waste stream: feed-grade lanolin, cholesterol for aquaculture, and cleaned wool. Our business model ensures the value of this innovation is returned to farmers within Mid and North Wales. **Impact for Mid and North Wales** **Economic Regeneration**: Our sourcing model targets often unsold wool and improves rural cash flow. This creates immediate economic benefit for upland farmers who rely more heavily on sheep income than lowland counterparts. **Strategic Job Creation**: Wool processing will create 50+ positions across engineering, chemisty and operations. These facilities target rural Mid and North Wales areas, breathing new economic life into communities. **Environmental Leadership**: Each tonne of Welsh lanolin that replaces imported soy oil, may reduce carbon emissions by up to 3-4 tonnes CO2e and supports Wales' Net Zero commitments. Our innovation creates a circular agricultural economy; farmers supply wool and eventually purchase the lanolin-based feed, eliminating waste while strengthening local supply chains. **Proven R&D Journey** This project builds on validated progression through three consecutive R&D phases. Innovate UK New Innovators established lanolin feed feasibility, SBRI Welsh Government Phase 1 validated digestibility and regulatory pathways, and current Phase 2 delivers first live animal trials (September 2025). This project scales from bench-scale (TRL 5) to demonstration (TRL 7-8) with modular processing blueprints designed for immediate deployment across Welsh sheep-farming regions. **Commercial Readiness and Market Opportunity** Feed manufacturers Wynnstay (Wales' largest) and Anpario serve on our advisory board, providing direct market access and commercial validation. Welsh wool alone can yield 4.7 million kg lanolin annually, replacing 13% of the UK's reliance on soy and palm oil. Success positions Wales as a global leader in sustainable agricultural innovation while creating valuable intellectual property for international licensing opportunities, establishing the region as an innovation hub for circular agriculture.