Case Study

Mongolia’s energy efficient oxygen production

This client is one of the major boiler producers and provider of accompanied installation and maintenance services for thermal power plants in Mongolia. In recent years, it extended its services to oxygen production for different entities in Ulaanbaatar.
To decrease the energy consumption in the oxygen production process, the company decided to replace the old Soviet oxygen generation equipment with a new and more efficient solution.
 
The MonSEFF team visited the company and based on gathered data calculated the energy and cost savings potential related to the investment. The new technology allows around 60 per cent energy savings compared to the old equipment, mainly due to the reduced installed power of the major plant components (compressor, cryogenic expander and air separation unit).
 
The $350,000 loan from the MonSEFF participating bank generated the annual savings of $42,805, arising from the reduced energy consumption by 1,749 MWh per year. The investment will repay itself in just six years from energy savings only, turning this new cash-flow into an income for years to come.
 
Other benefits of the project include the reduced maintenance costs, less failures and interruptions, improved product quality and water savings. This project demonstrates that energy savings never come alone, but bring other multiple benefits both for the company and for its clients and employees.
 
This way, the EBRD and MonSEFF support the sustainable financing and implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential and public sectors can make a change in the energy consumption patterns and contribute to environmental protection.
 
22 Dec 2015