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Cost of small scale palm oil mill plant

2026-04-08 HUATAI

Investment in small palm oil mills depends primarily on daily processing capacity and whether refining is required. In China, a typical scale (5–30 tons of fresh fruit bunches/crude oil per day) requires a total investment of approximately 150,000 to 3 million RMB, with equipment accounting for about 40%–60%

Cost Item | Percentage | Explanation

Core Equipment | 40%–60% | Pre-treatment, pressing, refining (degumming/deacidification/decolorization/deodorization), boiler, etc.

Infrastructure and Site | 20%–30% | Plant construction, raw material/finished product warehouse, water supply and drainage, roads

Installation and Commissioning | 5%–10% | Equipment placement, pipelines, electrical systems, training

Working Capital | 5%–10% | Raw material procurement, labor, water and electricity, working capital

Compliance and Preparedness | 5%–15% | Environmental impact assessment, safety assessment, spare parts, emergency funds.

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Common Scale Pricing 

1. Ultra-small Capacity: 500kg TPD–1TPD fresh fruit bunches, only coarse pressing

Equipment: Approximately RMB 100,000–150,000 (simple screw oil press + filter)

Total Investment: Approximately RMB 150,000–250,000 (including simple site and installation)

Suitable for: Pilot projects, small-scale operations, local self-sales

2. Small Standard

Capacity: 5–10 tons per day 1. **1. **Small-scale Advanced** Processing Capacity: 10-30 tons of crude oil per day, complete refining system

Equipment: Approximately 150,000-300,000 RMB (including pretreatment, pressing, and basic refining)

Total Investment: Approximately 300,000-600,000 RMB

Suitable for: Startups, regional markets, and companies with stable raw material sources

2. Small-scale Advanced 

Processing Capacity: 10-30 tons of crude oil per day, complete refining system (meeting national standards)

Equipment: Approximately 1,000,000-3,000,000 RMB (including PLC control, deodorization tower, etc.)

Total Investment: Approximately 1,500,000-5,000,000 RMB

Suitable for: Branded sales, entering supermarkets/distribution channels

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Key Influencing Factors:

Refining: Coarse pressing alone has low costs; producing finished oil requires **30%-80%** more equipment costs.

Automation Level: Semi-automatic saves 20%-40%; fully automatic is more efficient but requires higher investment.

Raw Materials and Energy: On-site processing of fresh fruit bunches saves on transportation costs; biomass boilers save **10%-20%** energy compared to fuel oil.

Compliance Requirements: Environmental impact assessments and food safety certifications will increase upfront costs by **5%–15%**.

Region and Import: Overseas equipment includes shipping and tariffs; domestically produced complete sets offer better value for money.

Quick Cost Calculation (Daily Processing of 10 Tons of Fresh Fruit Bunches):

Equipment: Approximately 150,000–300,000 RMB

Infrastructure and Installation: Approximately 100,000–200,000 RMB

Working Capital: Approximately 50,000–100,000 RMB

Total: Approximately 300,000–600,000 RMB

Annual Production Capacity: Approximately 1,500–2,500 tons of crude oil (depending on operating rate)

Payback Period: Approximately 1.5–3 years (depending on raw material costs and selling price)

Huatai Group have built palm oil mill plant capacity ranges from1-45 tph with one line, and refinery from 30-1000 tpd.

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As for oil industry, we are leading palm oil machinery manufacturer in China.

Outside of China, We have built many palm oil projects in Nigeria, Congo, Angola, Ethiopia, Pakistan, Togo, Thailand, Peru, Indonesia, etc. Also other oilseeds pressing line in the world.

Besides, we have supplied equipments to ADM, Bunge, Cargill, Louis Dreyfus, Wilmar International, Cofco, Noble etc.

We are expecting to have business cooperation with you.


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