Abstract. This article presents a feasibility study of the ECO CYCLE project — an industrial plant for the thermal processing of municipal solid and agricultural waste by pyrolysis, producing biochar, process fuel, and eco-brick. The relevance of the waste management problem in Kazakhstan is examined alongside the technological and market aspects of project implementation, SWOT analysis, financial projections, and the project's contribution to achieving the country's carbon neutrality target by 2060. Total investment amounts to USD 2.9–3.9 million, with an internal rate of return of 15–20% and a payback period of 3.5–4.5 years. The results indicate that pyrolysis-based waste processing can be both economically viable and environmentally impactful, contributing to Kazakhstan's Green Economy Strategy.

Keywords: pyrolysis, biochar, green economy, carbon neutrality, eco-brick, waste processing, Kazakhstan, sustainable development, carbon credits, circular economy.

Аннотация. Бұл мақалада ECO CYCLE жобасының техникалық-экономикалық негіздемесі ұсынылған — пиролиз әдісімен қатты тұрмыстық және ауылшаруашылық қалдықтарын термиялық өңдейтін, биокөмір, техникалық отын және эко-кірпіш өндіретін өнеркәсіптік зауыт. Қазақстандағы қалдықтармен жұмыс істеу мәселесінің өзектілігі, жобаны іске асырудың технологиялық және нарықтық аспектілері, SWOT-талдау, қаржылық болжамдар және еліміздің 2060 жылға дейін көміртегілік бейтараптылыққа қол жеткізуіне үлес зерттелген. Жалпы инвестиция көлемі — 2,9–3,9 млн АҚШ доллары, ішкі табыстылық нормасы — 15–20%, өтелу мерзімі — 3,5–4,5 жыл.

Түйін сөздер: пиролиз, биокөмір, жасыл экономика, көміртегілік бейтараптылық, эко-кірпіш, қалдықтарды өңдеу, Қазақстан, тұрақты даму, көміртегілік несиелер, циркулярлық экономика.

Аннотация. В статье представлено технико-экономическое обоснование проекта ECO CYCLE — завода по термической переработке твёрдых бытовых и сельскохозяйственных отходов методом пиролиза с производством биоугля, технического топлива и эко-кирпича. Рассмотрены актуальность проблемы обращения с отходами в Казахстане, технологические и рыночные аспекты реализации проекта, SWOT-анализ, финансовые прогнозы и вклад в достижение углеродной нейтральности страны к 2060 году. Общий объём инвестиций составляет 2,9–3,9 млн USD при внутренней норме доходности 15–20% и сроке окупаемости 3,5–4,5 года. Полученные результаты свидетельствуют о том, что пиролизная переработка отходов может быть одновременно экономически рентабельной и экологически значимой.

Ключевые слова: пиролиз отходов, биоуголь, биочар, зелёная экономика, углеродная нейтральность, эко-кирпич, переработка отходов, Казахстан, устойчивое развитие, углеродные кредиты.

1. INTRODUCTION

The problem of municipal solid and agricultural waste management has become a global challenge in recent decades. Kazakhstan, with its significant agricultural sector and rapidly urbanising economy, generates 5–6 million tonnes of waste annually, of which only 28.6% is recycled [1]. The national target of raising the recycling rate to 40% by 2030 requires not only infrastructure investment but also technological modernisation of the entire sector.

The adopted Green Economy Concept of the Republic of Kazakhstan and the country's commitments to achieve carbon neutrality by 2060 provide a stable normative and financial foundation for projects in the field of renewable resources and circular economy [2]. In this context, the ECO CYCLE project — an industrial plant that converts waste into biochar, process fuel and construction materials via pyrolysis — represents a comprehensive response to the ecological, economic and social challenges facing Kazakhstan.

The objective of this article is to present the feasibility study of the ECO CYCLE project, analyse its competitiveness in the market, and assess the cumulative effect on Kazakhstan's sustainable development.

2. RELEVANCE OF THE PROBLEM AND RESEARCH OBJECTIVES

According to the World Bank, volumes of waste generation in Kazakhstan are steadily growing in proportion to economic development and urbanisation [3]. At the current recycling rate of 28.6%, a significant portion of organic and lignocellulosic materials is directed to landfills, leading to methane emissions, soil and groundwater contamination, and degradation of agricultural land.

The problem is particularly acute in the arid and semi-arid regions of Kazakhstan, where soils are characterised by high salinity and low organic carbon content. Adding biochar to such soils not only improves their structure but also increases crop yields by 10–20%, reduces irrigation requirements, and slows desertification processes [4].

The research objective is therefore formulated as follows: to develop and justify a viable business model for a pyrolysis waste-processing plant that simultaneously addresses ecological goals (reduction of CO₂ emissions, reduction of landfill disposal) and achieves economic profitability under Kazakhstan market conditions.

3. THEORETICAL FRAMEWORK AND PYROLYSIS TECHNOLOGY

3.1. Pyrolysis Principle

Pyrolysis is the thermochemical decomposition of organic compounds at temperatures of 350–800 °C in an oxygen-free environment. Depending on the processing regime, slow pyrolysis (350–500 °C) maximises biochar yield, fast pyrolysis (500–800 °C) increases the liquid fraction (pyrolysis oil) output, and gasification (above 800 °C) produces syngas [5]. ECO CYCLE primarily focuses on the slow and fast pyrolysis regimes, allowing flexible variation of the product output structure depending on market conditions.

Feedstock may include agricultural residues (straw, husks, oilcake), wood waste (sawdust, bark, branches), and organic fractions of municipal solid waste. Such feedstock is accessible and inexpensive: in Kazakhstan, its sources are concentrated near large agro-industrial clusters.

3.2. Pyrolysis Products and Market Value

The ECO CYCLE production chain generates three main commodity streams:

— Biochar — the solid residue of pyrolysis; used as a soil amendment, sorbent and carbon sequestration medium. Market price for high-quality biochar is USD 150–500/t, providing up to 50% of total plant revenue [6].

— Process fuel (pyrolysis oil and gas) — used for internal energy consumption of the plant or sold to industrial consumers. Share of revenue: approximately 30%.

— Eco-brick — a construction material produced from ash residues and organic additives; characterised by strength, environmental compatibility and competitive pricing. Contributes approximately 20% of revenue.

4. MARKET ANALYSIS AND COMPETITIVE ENVIRONMENT

4.1. Global Biochar Market

The biochar market shows steady growth with a compound annual growth rate (CAGR) of approximately 16% in the Asia-Pacific region [7]. Global demand is driven by stricter climate commitments from states and the growing interest of the agricultural sector in regenerative agriculture practices.

4.2. Carbon Credit Market

Biochar is a verified carbon sequestration instrument. Each tonne of carbon fixed in biochar over the long term (>100 years) can be verified under Puro.earth, Gold Standard, or Verra standards and sold on the voluntary carbon market at USD 130–180/tCO₂e [8]. At a plant capacity of 2–5 t/h and 24-hour operation, total income from carbon credit sales can reach USD 0.65–1.8 million per year.

4.3. State Support

The Green Economy Concept of the Republic of Kazakhstan provides subsidies and tax incentives for enterprises implementing waste processing and renewable energy projects. The new Environmental Code of the Republic of Kazakhstan establishes extended producer responsibility mechanisms and creates a regulatory incentive for sector investment [9]. Additional financing sources include programmes of international organisations — the Asian Development Bank (ADB), the Islamic Food Security Organization (IOFS), and others.

5. SWOT ANALYSIS OF THE PROJECT

6. TECHNICAL SPECIFICATIONS AND PRODUCTION INFRASTRUCTURE

6.1. Equipment

The key element of the production complex is a stainless-steel pyrolysis reactor providing a capacity of 2–5 t/h in continuous mode (24/7). The technological line includes: a feedstock preparation system (shredding and drying), a gas purification system, pyrolysis oil condensers, an automated process control system and auxiliary transport and storage equipment. Total equipment cost is USD 0.78–1.3 million.

6.2. Infrastructure

Plant siting requires a land area of 2–5 hectares with access roads, electrical supply of 500–1000 kW and water supply. Construction of the production building (from 3,000 m²), storage and administrative facilities, engineering systems and perimeter fencing is estimated at USD 0.91–1.35 million. Construction time is 12–18 months.

6.3. Personnel

The plant will create at least 16 direct jobs (director, technical director, process engineers, operators, workers, administrative staff) with a total annual payroll of USD 109,000–147,000. The indirect employment effect is estimated at more than 1,000 jobs in related industries.

7. FINANCIAL PROJECTIONS AND INVESTMENT ATTRACTIVENESS

Total project investment is USD 2.9–3.9 million, of which equipment accounts for USD 0.78–1.3 million, infrastructure construction — USD 0.91–1.35 million, working capital — USD 0.5–0.8 million, and other expenses — USD 0.2–0.3 million.

Table 1 – Key financial indicators of the ECO CYCLE project

Revenue is diversified: biochar accounts for approximately 50% (USD 0.5–1.25 M/year), fuel — 30% (USD 0.3–0.75 M/year), eco-brick — 20% (USD 0.2–0.5 M/year). Carbon credit trading provides an additional revenue stream.

8. ENVIRONMENTAL AND SOCIAL IMPACT

ECO CYCLE delivers a comprehensive positive externality across three dimensions of sustainable development.

Environmental dimension. Annual recycling of 70–90% of incoming waste prevents landfill disposal and associated emissions. Carbon sequestration in biochar ensures a reduction of CO₂ emissions by 5–10 thousand tonnes per year — a direct contribution to the goals of the Carbon Neutrality Strategy 2060 [10]. Application of biochar on saline soils of Kazakhstan improves their structure and increases crop yields by 10–20%, contributing to the country's food security.

Economic dimension. Creation of 16 direct and more than 1,000 indirect jobs stimulates regional employment. Development of the value chain (feedstock collection, logistics, sales) creates new markets for small and medium businesses.

Social dimension. Reduction of air and soil pollution improves quality of life for residents of adjacent territories. Project implementation raises public environmental literacy and serves as a demonstration platform for scaling green technologies.

9. RISK MANAGEMENT AND IMPLEMENTATION PLAN

Technological risk associated with dependence on imported equipment is mitigated by long-term service contracts and phased localisation of reactor equipment production at Kazakhstani machine-building enterprises. Market risk is minimised by diversification of the product portfolio and targeting both domestic and export biochar markets. Financial risk is reduced by attracting grant and subsidised funding at the pre-investment stage. Regulatory risk is managed through continuous monitoring of legislative changes and constructive dialogue with regulators.

The project roadmap provides for the following main stages: design and permitting documentation (0–6 months), infrastructure construction (6–18 months), equipment installation and commissioning (18–24 months), reaching design capacity and carbon credit verification (24–36 months).

10. CONCLUSION

The ECO CYCLE project demonstrates that industrial waste processing by pyrolysis can be both economically profitable and environmentally significant. The combination of high-liquidity products (biochar, fuel, eco-brick) with carbon credit revenues and state support under the Green Economy Concept provides stable investment attractiveness with IRR of 15–20% and a payback period of 3.5–4.5 years.

Project implementation makes a direct contribution to achieving key state policy targets: raising the recycling rate to 40% by 2030, reducing CO₂ emissions, and strengthening food security by improving the fertility of saline soils. In a broader context, ECO CYCLE serves as a scalable model suitable for replication in other regions of Kazakhstan and Central Asian countries with a similar waste generation profile.

Further research should focus on developing a detailed life cycle model for pyrolysis products, optimising eco-brick formulations in accordance with Kazakhstani construction standards, and establishing a carbon credit verification programme under international standards.

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Shukurjon Egamberdiev — Project Manager, Tashkent Institute of Chemical Technology, Tashkent, Uzbekistan. E-mail: egamberdiyevshukurjon9@gmail.com.

Boburjon Gulomov — Environmental Expert, Tashkent Institute of Chemical Technology, Tashkent, Uzbekistan. E-mail: gulomov.06.006@gmail.com.

Sabina Sobirova — Laboratory Technician, Tashkent Institute of Chemical Technology, Tashkent, Uzbekistan. E-mail: sabinasobirova025@gmail.com.