Wide Open Agriculture (ASX:WOA) has successfully entered the next phase of the company’s lupin and plant-based protein business and has Board approval to immediately purchase, construct and operate an in-house lupin and plant-based protein manufacturing facility in Western Australia.
The pilot plant is expected to be constructed near WOA’s Dirty Clean Food operations in Kewdale, WA. The facility will be used to refine the lupin production process, protect existing IP, build new IP, and produce pilot-scale, food grade quantities of Modified Lupin Protein.
Managing Director, Ben Cole, said the plant is expected to generate a modest revenue stream and enhance opportunities to secure strategic partnerships and potential offtake agreements. Potential revenue from the pilot plants outputs is anticipated to offset the operational costs of the facility.
Our in-house pilot plant will offer WOA unmatched global capability and know-how in the production of lupin-based proteins with a unique techno-function sourced from WA’s leading regenerative farmers,” Mr Cole said.
A key purpose of the pilot plant is to build internal proprietary know-how and refine IP for use in multiple applications of Modified Lupin Protein. This know-how will include the creation of an IP portfolio that is tailored to end-product applications including plant-based burgers, drinks (including protein enriched OatUP), yoghurts and gluten-free noodles.
The pilot plant will also become critical in investigating different protein extraction processes which could potentially become less costly and more eco-friendly through reduced use of energy, water and chemicals.
Mr Cole said WOA believes there is an opportunity to apply its technology to other plant inputs, including regenerative pulses grown in WA and Australia such as chickpeas, lentils and fava beans. The pilot plant will act as an ideal facility to explore this potential as it leverages the same equipment required to produce Modified Lupin Protein.
Additional pulses would expand the total available market potential of the proprietary modification technology, and improves the protein’s reputation as using state-of-the-art, clean production processes. It also de-risks the project, as other textured plant protein has an existing market with unmet supply requirements.
Output from the pilot plant will also be used to create products that are aligned with its Dirty Clean Food brand (high protein oat milk, oat yoghurt and protein balls/supplements), and seek strategic partners for investment and offtake agreements with commercial partners.
Estimated costs have been received from multiple consultants and capital expenditure is expected to be $1.6 million to complete initial construction of the plant.
The company will now place purchase orders for key machinery and transition into construction.