Large agro-industrial plants such as Palm Oil Mills (PKS), sugar mills, and integrated processing facilities are no longer just cost centers. When waste streams and energy inefficiencies are properly utilized, these plants can generate USD 3–6 million per year in additional value per facility, depending on scale.
A structured Feasibility Study
(FS) is the tool that converts this hidden potential into measurable,
bankable outcomes.
1.
Why Plants ≥45 TPH Are Strategic Assets
This study focuses on existing
agro-industrial plants equivalent to Palm Oil Mills with capacity ≥45 tons per
hour, which dominate Indonesia’s processing sector.
These plants:
- operate continuously,
- consume large amounts of electricity and steam,
- generate substantial liquid and solid organic waste.
This combination creates ideal
conditions for biogas, biomass fuel, and organic fertilizer projects—technologies
that are already proven and commercially available today.
2.
Scale Determines Value Creation
Using standardized operating
assumptions (20 hours/day, 300 days/year), the Feasibility Study compares three
representative plant sizes.
Indicative
Annual Throughput
- 45 TPH:
~270,000 tons raw material/year
- 60 TPH:
~360,000 tons/year
- 90 TPH:
~540,000 tons/year
As scale increases, energy
surplus, waste availability, and monetization potential grow faster than
capital costs.
3.
Quantified Energy & Emission Impact
|
Parameter |
45
TPH |
60
TPH |
90
TPH |
|
Electricity demand |
~1.5
MW |
~2.0
MW |
~3.0
MW |
|
Annual consumption |
~7
GWh |
~9
GWh |
~14
GWh |
|
Biogas power potential |
~11.9
GWh |
~15.8
GWh |
~23.8
GWh |
|
Energy status |
Self-sufficient |
Large
surplus |
Very
large surplus |
|
Emission reduction |
~67,500
tCO₂e/yr |
~90,000
tCO₂e/yr |
~135,000
tCO₂e/yr |
➡️ All plants ≥45 TPH can become energy self-sufficient.
➡️ Plants ≥60 TPH generate exportable energy and carbon
value.
4.
Quantified Annual Value Creation (Key for Decision Makers)
Estimated
Annual Financial Value per Plant
|
Source
of Value |
45
TPH |
60
TPH |
90
TPH |
|
Electricity cost savings (biogas
CHP) |
USD
0.7 million |
USD
0.9 million |
USD
1.4 million |
|
Biomass & pelletized fuel |
USD
1.4 million |
USD
1.9 million |
USD
2.8 million |
|
Organic fertilizer (internal &
sales) |
USD
0.6 million |
USD
0.9 million |
USD
1.3 million |
|
Total annual
value |
USD
2.8–3.3 million |
USD
3.7–4.5 million |
USD
5.5–6.5 million |
👉 At ≥90 TPH, projects clearly shift from cost
reduction initiatives to new profit centers.
5.
Financial Feasibility and Bankability
Despite higher capacity, total CAPEX
grows non-linearly, while revenue and savings scale up significantly.
|
Indicator |
45
TPH |
60
TPH |
90
TPH |
|
Estimated CAPEX |
USD
5–7 million |
USD
6–8 million |
USD
8–11 million |
|
Indicative IRR |
14–18% |
16–22% |
18–25% |
|
Payback period |
4–6
years |
4–5
years |
3–4
years |
|
Bankability |
Good |
Very
strong |
Excellent |
These metrics make the projects highly
suitable for green loans and sustainability-linked financing, where 70–80%
of CAPEX can be funded by banks when supported by a credible Feasibility
Study.
6.
ESG, Carbon, and Long-Term Value
Beyond financial returns, these
projects deliver:
- elimination of open wastewater ponds,
- drastic methane emission reduction,
- 100% renewable electricity for operations,
- full utilization of solid and liquid residues.
For plants ≥60 TPH, emission
reductions of 90,000–135,000 tCO₂e per year open opportunities for:
- voluntary carbon credits,
- ESG performance monetization,
- group-level net-zero roadmaps.
7.
What the Feasibility Study Actually Delivers
A professional FS:
- quantifies technical potential,
- validates financial returns,
- identifies risks and mitigation,
- supports funding and investment decisions.
It transforms sustainability from a compliance
narrative into a measurable business strategy.
Board-Level
Takeaway
Large agro-industrial plants are not
just processing units. They are
scalable platforms capable of generating USD 3–6 million per year in
additional value per plant, while strengthening energy security, ESG
performance, and long-term competitiveness.
About
the Author
This article reflects the
perspective of an Independent Engineering Consultant with experience in
feasibility studies, energy optimization, and waste-to-value projects across
the agro-industrial sector, supporting owners and management teams in
developing technically sound and financeable investments.
— Ahmad Fakar
Independent Engineering Consultant
