Energy-efficient plastic recycling and production

Eyreg Energy LLC drives sustainable innovation in Mongolia’s recycling sector, implementing the circular economy principles.

Mongolia faces increasing environmental challenges from plastic pollution, ranking among the top ten countries globally for plastic waste generation per capita. Each person produces an average of 137.6 kilograms of plastic waste annually, while the recycling infrastructure remains limited. Plastic waste generation per capita is projected to increase by approximately 20–30% by 2030, in line with OECD and World Bank projections for emerging economies with similar urbanisation and consumption patterns.

Eyreg Energy LLC – founded in 2022 – was established to address the urgent need for sustainable plastic waste management. The company collects discarded plastic materials, recycles them, and produces both granules and finished products such as PET (polyethene terephthalate) bottles. By reusing processed materials, Eyreg Energy reduces Mongolia’s reliance on virgin plastics, conserves natural resources, and lowers greenhouse gas (GHG) emissions.

To expand operations and improve efficiency, the company invested in two new high-efficiency plastic bottle-blowing machines with the technical assistance from the Green Economy Financing Facility (GEFF) team. These advanced systems, equipped with servo controls and sensitive temperature and pressure sensors, offer superior precision and improved quality of the final production output. The upgrade replaces four outdated machines, significantly reducing energy consumption and operational costs while increasing production capacity.

With this USD 29,280 investment, partially financed through a GEFF loan provided by Khan Bank, Eyreg Energy LLC now saves 177.5 MWh of energy annually and reduces CO₂ emissions by 81 tonnes per year. Furthermore, the new system enables the recycling of up to 162,000 kg of PET annually, saving approximately 307,800 kg of crude oil through the avoided production of virgin plastics.

The Eyreg Energy LLC project demonstrates how small-scale innovations can deliver large-scale environmental benefits, supporting Mongolia’s transition toward a circular, low-carbon economy.

The Green Economy Financing Facility (GEFF) in Mongolia was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the Green Climate Fund and the Government of Japan.