DekelOil (LON:DKL) revealed that all materials and equipment for its kernel crushing plant at its Ayenouan palm oil project are now on site.
The Côte d'Ivoire-focused company said construction of the kernel crushing plant (KCP) is advancing well, and production of palm kernel oil (PKO) and animal feed is expected to commence, as previously indicated, in the fourth quarter of this year.
Kernels are now being gradually stockpiled, and discussions are underway with local groups to purchase kernels in addition to the company's own stock for input into the plant.
Offtake discussions are well advanced for the sale of PKO and animal feed demonstrating significant local demand for these products, DekelOil said.
A further update will be provided to the market when the testing phase of the plant commences, it added.
“Based on the discussions we are having with potential offtake partners and our own internal forecasts, we are confident that there is a significant local market for both PKO and animal feed, which will allow both products to be sold at the factory gate,” said Lincoln Moore, executive director of DekelOil.
“We are working hard to ensure we hit the ground running once the KCP becomes operational by stockpiling our own kernels for processing as well as talking to other local suppliers, in line with our strategy to extract further value from the processing of fresh fruit bunches through the sale of high value PKO and animal feed,” Moore added.