How to Extract Lanolin from Sheep's Wool

If the wool has been steamed or kept just under a boil (so that the water doesnt ripple at all), then the wool should still be usable. A better option is to do at least two 30-minute soaks in small batches in water that is at least 130F. Pull the wool from the water, let it drain, and place it on a drying rack over a pan. Transfer the water from the first kettle to a larger kettle and boil it there for a while to remove most of the water leaving the lanolin. Do the same for the second soak and dump the water from the second soak into the larger kettle. Keep doing this as you progress through your fleece, and you shouldn't get any felted wool as long as you dont agitate it when submerging or pulling it out.

If you lower the temperature to steaming, you might be able to use the wool afterwards. However, when re-filling the pot, use hot water to avoid temperature shifts. A rapid boil or even a simmer for an extended period would likely felt the wool.

It's generally not a good idea to boil wool that you plan to spin into yarn. It makes it harsher-feeling. For carding into batts for quilts, stuffing, or needlefelting, it would be fine.