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Comparison of the Cost of Oxygen Gas from Different Sources

3 min read
Absstem Blog Post

Comparison of the Cost of Oxygen Gas from Different Sources

One of the most common questions industries ask when evaluating different sources of oxygen gas is: What is the cost of oxygen production?

This article aims to provide a clear answer through cost comparisons and practical insights. We’ll briefly explore the costs associated with:

  • Liquid Oxygen
  • High-Pressure Cylinders
  • PSA Oxygen Generators

We’ll also highlight why PSA oxygen generation is often the most economical choice for continuous, on-site supply.

Available Oxygen Gas Sources

There are three primary ways to source oxygen gas in industrial applications:

  • Liquid Oxygen (LOX)
  • High-Pressure Oxygen Cylinders
  • PSA Oxygen Generators

The first two options are delivery-based models. They require frequent replacements and come with higher operational costs. In contrast, PSA (Pressure Swing Adsorption) Oxygen Generators produce oxygen on-site using ambient air, significantly cutting down long-term costs and reliance on external vendors.

Cost Comparison: Oxygen from Different Sources

Source of OxygenCost per Nm³ (INR)Notes
Liquid Oxygen₹15 – ₹25Cost varies by proximity to the LOX production plant
High-Pressure Cylinder*₹30 – ₹60Pricing depends on location
PSA Oxygen Generator₹8.8Based on the electricity cost of ₹8/unit

*One cylinder holds ~7 Nm³

Comparison Parameters

Sno.ParameterLiquid OxygenHigh-Pressure CylinderPSA Oxygen Generator
1Cost per Nm³HighVery HighLow
2Risk InvolvedHigh (expansion ratio)Very High (150 barg pressure)Low (operates at ~5.5 barg)
3Third-Party DependencyYes (frequent refilling)Yes (frequent refilling)No (on-site production)
4Carbon EmissionsHigh (due to logistics)High (due to logistics)Very Low (on-site generation)

 Cost of Oxygen from PSA Oxygen Generators

PSA oxygen generators use pressure swing adsorption technology to extract oxygen from air. The energy required to produce 1 Nm³ of oxygen is approximately 1.1 kWh.
Assuming an electricity rate of ₹8 per kWh, the cost of oxygen production is:

1.1kWh × ₹8 = ₹8.8 per Nm³

This makes PSA oxygen generation one of the most cost-efficient solutions for facilities with continuous oxygen demand.

Conclusion

When comparing liquid oxygen, high-pressure cylinders, and PSA oxygen generation, PSA technology clearly stands out for its cost-effectiveness, safety, and independence from third-party suppliers.

For industries looking to cut down on operational costs and reduce carbon emissions, PSA oxygen generators offer a sustainable and economical long-term solution.

Want to calculate ROI? Read our detailed blog:
How to Calculate the ROI (Return on Investment) of a PSA Oxygen Generator Compared to Liquid Oxygen or Oxygen Cylinders (1)

Contact Us

For tailored solutions and expert advice on Nitrogen consumption and cost, contact us:

References

  1. Absstem Technologies. (2024). How to calculate the ROI (Return on Investment) of a PSA Oxygen generator compared to Liquid Oxygen or Oxygen Cylinders

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