When we talk about selecting an oxygen source for a specific application or use case, a few of the most important considerations that come to mind are the cost and purity of oxygen gas. The source you choose can have a significant impact on operational expenses, process quality, and long-term sustainability.
In this article, we will explore the oxygen purity requirements for different applications, compare the cost of oxygen from various sources, and share insights on how industries can reduce oxygen expenses without compromising performance.
Cost of Oxygen from Different Sources
Oxygen can be supplied through liquid oxygen (LOX), high-pressure oxygen cylinders, PSA oxygen generators, or VPSA/VSA oxygen generators. Each source has different cost implications.
Comparison of oxygen cost via different sources
| Oxygen Source | Cost per Nm³ (₹) | Details |
| Liquid Oxygen | ₹15 – ₹25 | Cost varies based on distance from the LOX production plant to the industry. |
| High-Pressure Cylinder | ₹30 – ₹60 | One 7 m³ cylinder costs ₹200 – ₹500, depending on the distance from the filling station. |
| PSA Oxygen Generator | ₹8.8 | On-site production at medium purity. |
| VPSA/VSA Oxygen Generator | ₹2 – ₹2.64 | Lowest cost for large-scale oxygen production. |
Oxygen Purity from Different Sources
Purity varies depending on the source. While liquid oxygen and cylinders offer the highest purity, generators deliver slightly lower concentrations at a much lower cost.
Comparison of Oxygen purity from Different Sources
| Oxygen Source | Purity (%) |
| Liquid Oxygen | 99.5 – 99.9 |
| High-Pressure Cylinder | 99.5 – 99.9 |
| PSA Oxygen Generator | 90 – 96 |
| VPSA/VSA Oxygen Generator | 90 – 96 |
While oxygen generators offer huge cost savings, they can provide a maximum purity (or oxygen concentration) of 96%, compared to 99.5% for LOX or cylinders. For many industrial applications, 90–96% purity is sufficient, making generators the more cost-effective and sustainable choice. Let us explore a few different applications of oxygen gas to understand more about this in detail:
Oxygen Purity Requirements by Application
Here’s how different industries use oxygen and the minimum purity required:
- Medical Oxygen Production (Hospitals)
- Required Purity: 93% ± 3%
- Meets Indian, European, and US Pharmacopoeia standards. Oxygen generators can deliver this purity with strict control over impurities like CO, CO₂, and NOX.
- Welding and Brazing Applications
- Required Purity: ~90%
- Oxygen generators can reduce oxygen expenses by up to 70% compared to traditional sources.
- Wastewater Treatment
- Required Purity: ~90%
- Used to increase dissolved oxygen (DO) levels for improved treatment efficiency.
- Oxygenation (Fish Farming & Aquaculture)
- Required Purity: ~90%
- Maintains optimal oxygen levels in ponds and water bodies.
- Metal Cutting / Laser Cutting
- Required Purity: ≥99.5%
- Lower purity oxygen (93%) reduces cutting speed and quality; therefore, generators are not recommended.
- Glass Manufacturing
- Required Purity: ~90%
- Enhances furnace combustion; oxygen generators are cost-effective.
- Paper Manufacturing
- Required Purity: ~90%
- Used in delignification and bleaching processes. Large oxygen demand makes on-site generation ideal.
- Ozone Production
- Required Purity: ~90%
- Oxygen is converted into ozone for water purification systems.
Cost Implications of Oxygen Purity
Historically, industries relied solely on liquid oxygen or cylinders, both delivering 99.5-99.9% purity but at significantly higher costs. Today, on-site oxygen generators provide a viable alternative for most applications, offering:
- 70–90% cost savings
- Elimination of transport and logistics expenses
- Reduced carbon emissions
- Zero dependence on third-party suppliers
ROI of Oxygen Generators
Switching to VPSA or PSA oxygen generation can result in payback periods of 18-30 months for industries with oxygen requirements.
Recommendation: It is very critical to understand the actual oxygen purity level required in the application. Using high-purity oxygen for an application requiring lower purity offers no technical benefits and increases the overall operational costs. For instance, use high-purity oxygen (99.5%) only where absolutely necessary, such as laser cutting. Please read our blog titled, How to calculate the ROI (Return on Investment) of a PSA Oxygen generator compared to Liquid Oxygen or Oxygen Cylinders to get a fair estimation of the savings one can make using oxygen generators.
There are very few applications that really require oxygen purity levels of 99.5%; one needs to understand the cost implications of using the right purity for their application. Please read our blog titled, Comparison of the Cost of Oxygen Gas from Different Sources to understand better.
Conclusion
Oxygen generators, especially PSA systems, offer a perfect balance between cost, purity, and sustainability for most industrial applications. While they cannot match the ultra-high purity of LOX or cylinders, their cost efficiency and environmental benefits make them the smarter choice for the majority of use cases.
Consult Us
For personalised consultation and to understand the best PSA Oxygen Plant setup for your application:
- Email: [email protected]
- Phone: 1800 3010 3394
- Website: www.absstem.com
References
- Absstem Technologies. (2025). How to calculate the ROI (Return on Investment) of a PSA Oxygen generator compared to Liquid Oxygen or Oxygen Cylinders
- Absstem Technologies. (2025). Comparison of the Cost of Oxygen Gas from Different Sources
FAQs
What is the cheapest source of oxygen for industry?
A VPSA oxygen generator is the most cost-effective source, producing oxygen at ₹2–₹2.64 per Nm³, significantly lower than liquid oxygen or cylinders
What purity is required for medical oxygen?
Medical oxygen typically requires 93% ± 3% purity, which can be achieved by PSA or VPSA oxygen generators in compliance with pharmacopoeia standards.
Is 90% purity oxygen suitable for metal cutting?
No. Metal cutting and laser cutting require at least 99.5% oxygen purity to maintain cutting speed and finish quality.
How much can an oxygen generator reduce costs?
Oxygen generators can lower oxygen costs by 70–90% compared to liquid oxygen or high-pressure cylinders, with an ROI of 18–30 months.
What industries can use oxygen generators?
Oxygen generators are ideal for hospitals, brazing, wastewater treatment, fish farming, glass manufacturing, paper production, welding, and ozone generation.
