Ulaanbaatar city took a major step toward sustainable urban management by signing a Waste-to-Energy Plant agreement on October 24, 2025. The Waste-to-Energy Plant will process municipal and industrial waste while producing electricity for the city.
Mayor Nyambaatar Khishgee and Tang Ya Yu, director of Renshou Sichuan LLC, signed the Public-Private Partnership Agreement. Renshou Sichuan, chosen as the project contractor, specializes in energy investment and environmental protection. The USD 206.5 million plant is scheduled for completion in 30 months. After 28 years, ownership will transfer to the state.
The plant will operate approximately 8,000 hours annually and generate 35 MW of electricity. The Ministry of Energy will purchase the electricity at around 8.4 cents per kWh. Businesses producing large industrial waste will pay compensation fees to cover the remaining 5.6 cents, supporting the investor’s revenue.
Moreover, the plant will incinerate waste from Ulaanbaatar, Zuunmod, Hunnu city, Altanbulag, and Sergelen soums of Tuv aimag without charge. It will also remove and burn waste buried over the past decade in Ulaanchuluut and Tsagaandavaa landfills, helping restore local ecology.
Mayor Khishgee emphasized the project’s ecological and economic significance. He said, “To modernize Ulaanbaatar, we need an engineering supply unit. This plant allows us to finance operations through consumer tariffs while recovering investment costs. The Waste-to-Energy Plant is unique because private funding covers 100 percent, and the government guarantees the public-private partnership. Urban mining will transform buried waste into energy while restoring the environment.”
Currently, Ulaanbaatar generates about 1,500 tons of waste daily. The city previously buried this waste at two nearby landfill sites, creating environmental challenges.
Experts note that the Waste-to-Energy Plant will reduce landfill dependency, lower greenhouse gas emissions, and provide a reliable power source. Furthermore, integrating urban mining ensures long-term ecological benefits while supporting energy security.
City officials also plan to monitor operations closely and explore expansion to other regions in Mongolia. They expect the project to serve as a model for sustainable urban development across the country.
The Waste-to-Energy Plant highlights a shift in municipal strategy, balancing public-private investment with ecological responsibility. This project demonstrates Mongolia’s commitment to modern infrastructure, cleaner energy, and circular economy practices.
