Periodic Reporting for period 1 - BPV (EXTRACTING VALUE FROM BYPRODUCTS OF THE FOOD INDUSTRY) Reporting period: 2015-05-01 to 2015-08-31 Summary of the context and overall objectives of the project IGW is an Italian SME with experience in rendering and transforming animal waste. The BPV Process (By-Product Value) is a customizable rendering process to valorise slaughterhouse waste in such a way that animal byproducts (ABP) are converted into fuel for biogas generation through anaerobic digestion. The method is designed to treat ABP that are not valuable under traditional rendering methods, due to their apparent low concentration of proteins and fats. The BPV process renounces to separate proteins from the mix, implying the avoidance of several typical stages of standard rendering methods and notably reducing costs (up to 30% less operating costs than traditional rendering). The outputs of the process, the BPV-products, are excellent fuel for biogas generation, with extraordinary methane generation potential, as is proven by the high methane content reachable by the raw biogas obtained from the BPV-products (up to 70% CH4 content). The method will be implemented through two different lines, each one especially adapted to different requirements. The small size, of 10 tonnes/day, for which the BPV-products are mixed solid/liquid phases containing proteins and fats and useful as fuel for biogas generation, indicated for ABP with low concentration of proteins and fats such as pig derived waste and similar. The big size, 30 tonnes/day, contains an additional separation phase after which fats are obtained into a liquid phase and can be sold to fat refineries, while the rest is yet useful as fuel for biogas generation.The main objective of the BPV Project is to commercialize the technology, for which several steps need to be taken: ultimate the design of commercial plants, build and test pilot installations, adjust the technology according to the tests, industrialize the production, protect IPR and close agreements with all stakeholders required for the commercialization of the technology. Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far During the reporting period, extending from May 2015 to August 2015 the following tasks have been carried along:1.- Determination of the detailed technical scope of the Project, reviewing the required technical improvements and the associated plan, timing and budget. Two pilot demonstrations have been programmed to be performed during Project execution, with the main objectives of demonstrating the technology with real end-users and obtaining certifications for the BPV-products and the biogas produced out of them.2.- Estimation of costs of the commercial BPV plants in an industrial production mode, for both the 10 t/d and 30 t/d plant types.3.- IPR study: patent research and analysis have shown no conflict with any existing invention. As a result, IGW will apply for a patent for the BPV Process during the execution of the Project.4.- Demand and Market Analysis: both two sectors relevant for BPV have been analysed (meat production/slaughterhouse activity and biogas). The production of animal by-products and the demand for biogas largely overcome the offer of BPV, indicating a favourable commercial environment for the solution.5.- Business Plan: IGW will install and maintain the plants and trade with the animal waste and the BPV-products. The business model has been established on the basis of: 1) IGW receives an entry fee for the installation of the plant, 2) Slaughterhouses will pay a 50% of the standard gate fee for disposal of ABP, 3) IGW will sell the BPV-products subject to the constraint of providing a 30% of costs reduction to biogas operators with respect to using energy crops as feedstock. Trading forecasts then show the feasibility of achieving more than 13M€ of cumulative profit after 5 years in the market. Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far) The BPV Rendering Method will offer sophisticated solutions to slaughterhouse operators, which are forced by regulations (after banning legislation Reg 1069/2009/EC) to find convenient ways to dispose their animal byproducts. In particular, the BPV Process is indicated for those animal byproducts that are currently considered of no value due to their low content in proteins and fats. With the innovative rendering method, they are transformed into BPV-products, which are a great and low-cost fuel for anaerobic digestion as is demonstrated by their remarkable methane potential (raw biogas contains up to 75% of methane).Hence, the BPV Process will contribute to reduce animal waste by bringing value to it, and at the same time, to significantly reduce operating costs of biogas producers (production of biogas from the BPV-products can be profitable even in the absence of public subsidies).