Mongolia’s energy efficient oxygen production

Producer of boilers and oxygen
Ulaanbaatar, Mongolia
Replacement of oxygen generation equipment (compressor, cryogenic expander and air separation unit)
Investment Size
Financial results
Payback period of 8.2 years; annual cost savings of $42,805
Energy savings
1,749 MWh per year
CO2 savings
560 tonnes per year
Reduced maintenance costs, fewer failures and interruptions, improved product quality and water savings

Significant energy and cost savings for the company due to equipment replacement

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 annual savings of $42,805, arising from reduced energy consumption by 1,749 MWh per year. The investment will repay itself in just over eight years from energy savings alone, turning this new cash-flow into an income for years to come.

Other benefits of the project include reduced maintenance costs, fewer failures and interruptions, improved product quality and water savings. This project demonstrates that energy savings never come alone, but bring multiple other 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 energy consumption patterns and contribute to environmental protection.