Mongolian company to build pellet manufacturing plant in Buryatia

The government of Russia’s Republic of Buryatia and the Mongolian company Monpellet have signed a deal for cooperation in developing alternative fuel energy sources and constructing a fuel pellet manufacturing plant with the annual capacity of 120,000 tons. The main target market is Mongolia, which banned burning of coal as fuel in its capital Ulaanbaatar in May 2019.

Monpellet will invest a total of $10 mio in the project to solve the issue of wood waste disposal and local residents’ employment. The government of Buryatia is interested in small businesses taking more efforts to implement projects for producing biofuel such as pellet fuels, woodchips, and wood-polymer composites. This will help find comprehensive solutions to solving the industrial wood waste issue. Pellets are generally produced from bark, sawdust, woodchip and other industrial wastes; the finished product is standard-size compacted wood pellets.     

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