Public Funding for Koolmill Systems Limited

Rice is the number 1 food crop globally: 91% of it is produced and consumed in Asia and it is the staple for more than half the world's population. However, for every kilogram of rice we eat, a kilo of straw is also produced. Not to be confused with husks, which cover the grains and are taken to a mill, the stems and leaves of the rice plant are left in the fields after harvest. Rice straw is difficult to remove from paddy fields, which are often flooded and in remote areas. It is high in silica, making it a poor fuel or animal feed. It is also not suitable to incorporate into flooded rice fields due to slow degradation and high greenhouse gas emissions, so burning is farmers' main option for clearing fields. Across Asia, a staggering 300 million tonnes of rice straw go up in smoke every year, releasing a lethal cocktail of gases and black carbon that triple risks of increased respiratory diseases and accelerate climate change. Rice is responsible for 48% of global crop emissions: more CO2e than the whole global aviation industry combined. A recent IFPRI study calculated the health costs of crop residue burning to be $30 billion annually in North India alone, rising to $190 billion in five years. To address this crisis a British SME, Straw Innovations Ltd, was started in 2016 as a spin-out from pioneering international research on the subject. The company's founder, Craig Jamieson, assembled consortia and secured Energy Catalyst co-funding to establish an industrial pilot plant in the Philippines, collecting rice straw and fermenting it to produce clean-burning methane gas. The whole system had to be specially designed since no existing technologies were suitable for the purpose. The plant is now operational, with many techno-economic breakthroughs. Local farmers strongly support it and are waiting for scale-up so they can benefit from its efficient, clean energy services. Rice is known as a "Poverty Crop" because farmers often struggle to afford energy-intensive equipment that could improve their yields add value to their crop. Therefore, this project will demonstrate a complete system of 500ha harvesting, straw removal, biogas-powered rice drying and storage plus efficient milling. The "Rice Straw Biogas Hub" will offer these as affordable, value-adding commercial services to the rice farmers, avoiding their need to buy and maintain expensive equipment, and enabling them to triple incomes whilst protecting the environment.

**Problem:** 44 African countries produced 22.1 million metric tonnes (MMT) of processed rice (FAOSTAT 2018). With 14.24m ha planted, paddy yields vary from 0.59 MT/ha (Congo) to 8.83 MT/ha (Egypt). Annually, Nigeria, with the largest African population, consumes 7MMT of processed rice. Like many African countries, Nigeria should be self-sufficient. However, poor field yields (2.04 MT/ha) and inadequate processing infrastructure cannot match imported rice quality. Consequently, even as the largest producer: 4.6MMT, 2.4MMT is imported at a cost of $1.82bn. Circa 1.8MMT is processed by 10,000 low, quality small processors (1MT/day). Revenue from rice is circa $2,8bn in 2020, projected CAGR (2020-2025) is 7.9%. 75% of Nigerian smallholders are female. They undertake 80% of the workload yet access only 20% of the value. Post-harvest losses results in a 12.4% FOOD LOSS. Urbanisation, economic growth, and government policies are driving demand for high quality locally produced rice. **Solution:** Engaging with smallholders to scale, adapt, extend, and apply Koolmill technology will unlock access to added value processing, empowering 1.43m smallholders to produce high quality locally processed rice. Equal access to productive resources will enable increased female post-harvest value participation. A novel pay-as-you-mill business model makes the technology affordable, building an inclusive and sustainable rice value chain in SSA. **Key Objectives** Engage with 5 to 10 smallholders and 5 SME Millers. 1. Improving quality and competitiveness of local rice: Improving productivity and quality changes the rice value chain dynamics. Potentially substituting 10% of imports will create and retain value from locally processed high-quality rice 2. Environmental impact: low-power, high-performance processing maximise food return from existing harvests 3. Empower female and youth participation in an inclusive rice value chain: Work with female and youth groups to identify needs and, through the adaptation of Koolmill technology, increase participation in an inclusive value chain. 4. Release female workers from menial tasks: to deliver sustainable long-term societal benefits. Reduce number of hours women spend on menial tasks (\>6hrs a day) **Innovative:** engagement with end users to understand their needs and evolve a technical, economically viable solution meeting those needs. The application of suitably adapted technology is innovative and, if adopted by smallholders, can be easily scaled to target the wider pan-African market. A simpler, distributed off-grid, economically viable on-demand processing solution delivering high-quality rice at point of use will unlock true value for rural farmers. Maximising the food returned from existing harvests, moves Nigeria towards Net Zero Carbon and Zero Hunger.

Koolmill and the National Centre of Excellence for Food Engineering (NCEFE) collaborated to develop an improved rice milling system and valorise the by-products of rice milling (102755/105862). Specifically, these projects target SME millers in Rural communities: the objective is to create and retain added value in rural communities transforming smallholder growers/SME Millers, from low value commodity producers, to market leading added value food processors. Traditional rice milling comprises two processes: husking and bran removal. Husking is achieved by passing the paddy (raw rice) between two rotating rubber rolls being pushed together under pressure. Think old-style mangle for squeezing water from washing: that's a 'modern' husker. Bran is 'milled' from the brown rice in multiple processes (typically up to 5) producing finished white rice. The two processes are fundamentally different. Husking is a 'one-shot' operation to remove the fibrous husk and bran removal is a gradual process through multiple contacts within the milling chambers of abrasive or frictional machines. Traditional huskers are a pain for millers, requiring regular maintenance and repair. Husking rolls have a relatively short life at around 24 hours. Setting huskers is a compromise between husking efficiency and broken brown rice. Higher closing pressures increase the husking efficiency but result in higher levels of broken rice. Reducing closing pressures reduces broken rice but with poor husking efficiency. 102755/105862 improved bran milling performance, increasing the power saving from 80% to over 90% and milling chamber capacity from 60 to 150kg/hr/chamber. Milling from brown to white, the bran removed is pure, very fine and will generate significant new revenue streams for rice millers. This value is dependent on the purity of the bran. Koolmill has previously demonstrated the capability of coated abrasives to be an effective husking medium. The loss in capacity from paddy to white compared to brown to white milling was only 4%, with a relatively high husking efficiency, over 80% power savings and reducing white broken rice from 30% to less than 5%. The downside of this increased bran milling performance is a reduction in husking efficiency, and the combination of husk and bran discharged together reducing the purity and potential value of the bran. With over 75 million tonnes of rice bran produced the opportunity is to take bran from a low-value waste, used for oil extraction and animal feed, to a valuable and nutritional beneficial human food ingredient. There are many nutrition bioactives stored naturally within cereal brans including a range of biotechnology approaches for improving fibre, phytosterols, polyphenols, phenolic acids, antioxidants. These can be enhanced or made more bio-available through secondary processing. Realising that value is dependent on fine clean bran driving the need for a separate husker. The industry is ready for new more efficient husking option and this would confirm Koolmill and NCEFE as global thought leaders in cereal milling, offering a unique ultra-low power paddy to white milling solution set to transform a global market projected to purchase $4 billion of rice milling equipment over the next 5-years.

Baxi is a global player in the heating sector and has been working with industrial digital technologies (IDTs) for over ten years, aiming to improve our market share, competitiveness and productivity. Servitization is a growing manufacturing model, with 70% of manufacturers offering some level of servitization. However, few manufacturers offer more than consumables with maintenance schedules. We have assembled a cross sector project consortium with input from industry, UK SMEs and research organisations. The project will develop a Digital Servitization Demonstrator. We will deploy a new and innovative fusion of advanced services and digital servitization technologies, including sensors and IoT to create a digital twin of Baxi's manufacturing and service business. The DSD will provide the basis for a neutral Digital Platform (DP) which is not sector specific. This will be a wider, all-industry adaptable servitization model which can be transferred between sectors and developed as a bespoke model for individual companies. The model will enable a range manufacturing and supply 'digital twins' but also provide a means for businesses to use digital technologies to manage contracts, supply chains, customer contacts and all aspects of their business. The model has the potential to facilitate a step change in UK manufacturing and in other sectors, speeding manufacture, facilitating logistics, supply chains and customer service. Rollout of the models developed will enable UK business to become more agile and more competitive, stimulating growth.

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Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

Building on the successful outcomes of the initial Enhanced Rice Milling Project (102755) an Extension For Impact Project was granted to facilitate six-month in-country (India) pilot field trials for rural rice milling and the rural manufacture of AACM concrete products.

The PyroPower Africa consortium will develop to TRL 4, a novel, low-maintenance biomass-powered PyroPower system that is feedstock flexible. In addition, the consortium will test the business case for deployment of a PyroPower pilot plant in Nigeria, using satellite geo-location / proximity data to identify possible locations for a diverse portfolio of future PyroPower installations. PyroPower Africa will also develop the business case for a mobile payment system and develop the protocols needed to sell electricity over rural micro grids in Nigeria using digital mobile transactions. Finally, the development of a detailed business case for a 100 kWe PyroPower plant using rice husk produced by a rice milling technology developed by one of the consortium members, will enable a detailed techno economic appraisal & front-end engineering design study to determine the replicability of PyroPower when integrated with rural food production systems in Sub Saharan Africa.

Achieving optimal efficiency in the post harvest handling and processing of rice is a ubiquitous challenge for China's agri-food sector. Rice is the staple food of 2/3 of population & it produces c. 1.3bn of quality rice p/a. This is insufficient to meet the aggressive population (13M p/a). This is due to land pressure & inefficient milling process handling resulting in an average 50% grain losses in machine batch processing. There are 6000 medium large mills across China operating at 50-60% efficiency rates. Conventional milling machines are manually operated & have no mechanism to responding to process variants (temperature, machine failures, contaminants) that can result in a whole milled batch being ruined. The project aims to develop a novel digital milling processes, supported by AI software platform that will intuitively respond & adapt to potential process failures, reduce milled waste & inject an additional 3MT of high quality rice (worth an additional £1.2bn to regional farming communities) into Chinese food chain p/a. 100% uptake would deliver 40MT (worth £12M p/a). This will be supported by a new business model, and education programme to support technology uptake and changes in work practice.

Achieving optimal efficiency in the post harvest handling and processing of rice is a ubiquitous challenge for India's agri-food sector. Rice is the staple food of 65% of the population and India, is the world's second largest producer. It produces 103MT pa and exports 12MT of this. However, on average, head rice return in post production handling is a low 50% of the paddy weight, with 50% of waste by-products consisting of rice brokens, husk hulls and bran that are currently under utilised. The objectives of the project are twofold: firstly develop a higher efficiency and lower energy milling process that will significantly reduce rice brokens during milling and increase total rice output. Secondly, optimise the by-products available from the improved milling process to re-process rice bran into highly nutritious food ingredients and process rice husks into rice husk ash for re-use in the construction industry.