PALMOILMAGAZINE, KUTAI TIMUR – PT Teladan Prima Agro Tbk (TLDN), also known as TPA, inaugurated the Kernel Crushing Plant (KCP) and Biogas Power Plant (BPP) located in Muara Bengkal District, East Kutai Regency, East Kalimantan, on Tuesday, November 5, 2024. The inauguration was attended by TLDN’s board of directors and commissioners, marking an important milestone in the company’s downstream expansion and utilization of palm oil waste.
TLDN President Director, Wishnu Wardhana, explained that the KCP and BPP are strategic steps to improve the company’s competitiveness in the palm oil plantation and processing industry. The new facilities are in line with TLDN’s sustainability commitment by applying circular economy principles and optimizing the use of resources throughout the production chain.
“We are committed to expanding our business while upholding sustainability values. Through KCP and BPP, we hope to improve operational and financial performance, while contributing to environmental preservation,” Wishnu Wardhana said in an official statement quoted by Palmoilmagazine.com, Thursday (7/11/2024).
The Kernel Crushing Plant (KCP) will produce palm kernel oil (PKO) and palm kernel expeller (PKE) from palm kernels, creating value-added products. In addition to extracting these palm kernel-based products, the KCP will also benefit from renewable energy generated by the BPP, ensuring efficient use of resources throughout the production chain.
The Biogas Power Plant (BPP) will strengthen TLDN’s renewable energy segment by generating electricity from POME (Palm Oil Mill Effluent), a by-product of the fresh fruit bunch processing process. This biogas-based energy helps reduce dependence on fossil fuels and lower greenhouse gas emissions, in line with the company’s sustainability goals.
KCP has a production capacity of up to 100 tons of palm kernel per day. Since starting operations in March 2024, TLDN has produced 2,422 tons of PKO and 3,174 tons of PKE as of September 2024. Going forward, the company expects to increase PKO production by optimizing the palm kernel supply chain from plantations across East Kalimantan.
“With PKO and PKE as derivative products, we are increasing the economic value of TPA’s oil palm plantation products, so margins will also grow. We estimate the value of palm kernel will increase up to 200% through this KCP initiative,” Wishnu added.
The Biogas Power Plant generates approximately 1.5 to 2 MW of electricity from POME derived from the Muara Bengkal Mill, TLDN’s main palm oil processing plant. This biogas-based energy is delivered to meet the electricity needs of the KCP, the mill, and employee housing, demonstrating TLDN’s dedication to the practice of utilizing waste for energy.
“The electricity generated by the BPP is used to support our production facilities and employee housing, as one of the company’s efforts to utilize palm oil mill waste and our commitment to implementing sustainability practices,” Wishnu said.
The construction of the KCP and BPP was funded by the proceeds of TLDN’s Initial Public Offering (IPO), in line with the company’s growth strategy. Of the total IPO proceeds, 15% was allocated for the construction of the KCP through TLDN’s subsidiary, PT Telen Prima Sawit, while 14% was allocated for the BPP through another subsidiary, PT Daya Lestari.
This expansion demonstrates TLDN’s commitment in advancing sustainable palm oil processing and enhancing the economic potential of its resources, strengthening the company’s role in driving sustainability practices in the Indonesian palm oil industry. (P2)
