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CAPTIVATE Report Summary

Project ID: 755937

Periodic Reporting for period 1 - CAPTIVATE (Craft Malting Process Innovation for a Competitive and Collaborative Rural Economy)

Reporting period: 2017-02-01 to 2017-10-31

Summary of the context and overall objectives of the project

CAPTIVATE is a “Craft Malting Process Innovation for a Competitive and Collaborative Rural Economy”. Building on our global micro maltings business, Custom Laboratory Products Ltd (“CLP”) has applied its 30 years’ sector knowledge to develop a highly innovative craft malting process, suitable for on-farm use.

In 2014, both Europe’s farming and food sectors provided 7% of all jobs and generated 6% of European gross domestic product. But global competition, industrialisation, urban expansion, increasing and diversifying demands of a growing world population, resource scarcity and climate change are a challenge for the sector’s prosperity. In Europe, between 2005-13, the number of farm holdings fell by 3.7% and the number of agricultural workers fell by 12.8%, indicating a long-term decline in the sector and a trend for bigger farms. Farmers, particularly SMEs, lack the infrastructure to add value to their crops themselves, resulting in them taking the smallest margins for their crops, from large companies who will process, distribute and sell them. They need innovative solutions to help them diversify, collaborate and grow.

CAPTIVATE presents such a solution, providing arable farmers the opportunity to access the growing, global craft malt market directly and empowering them to capitalise on the success of the craft beer market by creating a new craft malt market, providing a local solution from grain to glass. In addition, it will also enable farmers to grow across traditional boundaries by selling high value malt rather than low value barley directly to the end-users within the brewery, distilling and food sectors.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The overall objective for the project is to refine, scale up, bring to technological maturity and commercial readiness a larger (2.5 tonne), modular and more cost-effective version of our prototype. Doing so will empower farmers to add value to their barley, driving cooperative, shared economic development in the rural economy. Success will secure €48.4 million annual revenue and €18.8 million annual profit for CLP in 2021, creating 162 jobs (3 years post project).

During the 1st Reporting Period of the project, the 3D design for both the steep germinator & kiln has been completed & reviewed, with both put into 2d design for fabrication. In addition to the design both the P&ID’s, single line diagrams and PLC IO have been produced for each machine, which have also been used as the basis for the control panel designs. The operating processes have also been determined & the calculations for the use of water/energy/time/weight have been completed. In addition to which the software has also been developed utilising a specialist to determine the control levels for automation and maintenance, following which software factory tests have also taken place.

Following the completion of the designs, the control panels have been built. In addition, many of the component parts have also been completed, installed & factory tested ready for actual process testing when the plant has been completed & connected to services. In readiness for the actual process testing the process of preparing draft testing documentation (including manufacturing test sheets) has begun, in addition to generation of new quality control procedures for the new machines to allow for multi company involvement.

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 main innovation of CAPTIVATE is the scalability of our proven modular 2.5 tonne system, with one kiln being able to support as many as 6 Steep/Germinators in one single system. As the system is scalable, farmers can select the production capacity that gives the best return on investment, and will grow and be able to add capacity according to evolving, local market needs.

CAPTIVATE will empower farmers to capitalise on the craft beer market success by creating a new craft malt market which will be cost effective for farmers, in addition to being cost effective, automated, reliable, safe, secure, producing consistently high-quality malt which will provide rapid payback to users.

The CAPTIVATE system will be transported in a series of shipping containers, making the system both secure and mobile avoiding the need for a housing structure to be built or renovated. The system is easy to deliver and can be delivered fully assembled and tested, enabling customers to malt within days of receipt. Our system has significant commercial potential, with its ease of use already proving to be highly attractive to customers, and farmers will have direct access to a growing, global market.

A secondary, complementary market has also been envisioned, through selling the system to large maltings and brewers to test and produce speciality malts for their R&D activities and premium lines.
It is envisioned that 531 systems will be sold primarily within Europe and the USA, with the UK, Italy, Norway, France & Spain being key initial European markets, with potential cumulative global profits of €62.5 million and the creation of 162 jobs from the developed technology.

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