TESS Group: Status of EFB Pellet Manufacturing Plant Construction in Indonesia (May 2026)

TESS Holdings Co., Ltd. provides an update on the construction status of its manufacturing facility for "EFB pellets," a biomass fuel derived from agricultural residue, through its consolidated subsidiary, PT PTEC RESEARCH AND DEVELOPMENT (PTEC). Construction of this plant commenced following a groundbreaking ceremony in February 2025. As of May 2026, the company is conducting trial runs, including manufacturing tests for EFB pellets and load tests for various equipment, in preparation for the start of operations. In the medium-term management plan "TX2030," formulated and announced by the TESS Group in August 2024, the "Resource-Circulating Biomass Fuel Business" is positioned as a key focus area. The group aims to promote the circular economy and expand its stock business through the utilization of agricultural residues in the palm industry, such as EFB and PKS. Regarding EFB pellets, the company plans to proceed with production and sales at this plant, continue research and development toward mass production, and aims to acquire a production capacity of 100,000 tons per year during the mid-term plan period for large-scale commercialization. Moving forward, the TESS Group aims to start operations at this plant in June 2026 and contribute to the realization of global carbon neutrality through the biomass fuel manufacturing business utilizing agricultural residues at PTEC. - Location: Sei Mangkei Industrial Estate, North Sumatra, Indonesia - Site Area: Approx. 11,000㎡ - Annual Production Capacity (Planned): Approx. 10,000 tons - Scheduled Start of Operations: June 2026