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How to Start Oxygen Manufacturing Plant?

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Oxygen plays a vital role in the respiration of human beings. Without oxygen, no human life is possible on the planet. Human beings and many other creatures on the earth breathe in oxygen to stay alive. Oxygen is naturally produced by plants during photosynthesis wherein plants take carbon dioxide and release oxygen into the atmosphere.             

Oxygen is also used in hospitals to provide life support to patients and treat various diseases. Apart from this, oxygen is also used largely in the industries for the production of steel, plastics, textile, etc. Oxygen is a crucial component in the life support systems in submarines, aircrafts, space crafts, etc. However, these industrial needs of oxygen cannot be met by oxygen naturally produced by plants. It requires oxygen to be produced artificially on large scale to meet industrial needs.   

Industrial Applications of Oxygen

Some of the application of oxygen across various industries include:     

  • Medical & Pharma Industry
  • Steel Manufacturing
  • Plastic Manufacturing
  • Textile Manufacturing
  • Metal Fabrication
  • Glass Manufacturing
  • Paper & Pulp Manufacturing
  • Power Generation Using Coal
  • Chemical Processing

An Opportunity in the Crisis     

With the shortage of oxygen in the hospitals due to the second wave of covid-19 in India, the government has temporarily stopped the supply of oxygen for industries. This has led to a huge surge in the demand for oxygen in the country. With both hospitals and industries facing a shortage of oxygen, the industrial production of oxygen has come to a central stage across the country. The government is advising oxygen manufacturers to scale up the production in order to meet the growing demand and ensure sufficient reserves. This crisis is also a great opportunity for new entrepreneurs to start the oxygen manufacturing plant, considering the current situation in the country.    

Also Read: What are Oxygen Contractors and How They Can Help Overcome Oxygen Crisis?     

In this context, let us have look at how to start an industrial/medical oxygen plant. Oxygen is generally produced in various ways in industries. However, two methods are widely used to produce oxygen with 99.7% purity which is suitable for all kinds of industrial requirements.         

Here are the two methods used for the industrial generation of oxygen:

PSA (Pressure Swing Adsorption) Method

PSA method of oxygen generation involves the separation of nitrogen and other gases from the mixture of gases under high pressure to get pure oxygen. This method requires a set of machinery with two different vessels to separate the gases. It is one of the most preferred methods of industrial oxygen production used across the world. This method is primarily used by small scale industries.

Fractional Distillation Method

It is another most popular of generating oxygen in industries. When compared to the PSA method, it is more efficient and provides high purity oxygen. In this method, first dust is removed from the air. After removing the dust, the air is compressed and then purified by separating gases like carbon dioxide, moisture. Then the air is liquefied by passing through heat exchangers to separate oxygen and nitrogen. Finally, oxygen is collected and purified for commercial grade purity through the process of distillation. This method is primarily used by large scale industries to produce oxygen in large quantities with top quality.   

Oxygen Plant Setup Cost in India

The investment required to set up an oxygen manufacturing plant in India varies from 5 – 50 Crore depending on the size of the plant, location of the plant, type of the plant, etc.

Entrepreneurs can choose any of these methods as per their requirements and preferences. The two methods require two different kinds of machinery for the generation of oxygen. It is advisable for new entrepreneurs to consult experts with technical know-how before selecting the machinery for it involves a lot of customization to achieve desired results. Experts come in handy at various levels of oxygen plant setup right from machinery selection, installation, process optimization, approvals, business development, etc.

Are you are planning to setup a medical or industrial oxygen plant and wondering what is medical oxygen plant setup cost in India? Are you looking for experts who can guide you in setting up the oxygen manufacturing plant? If yes, then kindly register with SolutionBuggy and get access to trusted and verified experts who can assist in setting up the oxygen manufacturing plant right from the business plan, project cost, machinery selection and installation to process improvement, certifications approvals and business development.

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47 Responses

  1. In this pandemic period of Covid-19 – second wave, we are thinking to set-up a small scale oxygen manufacturing plant for medical use only. To help the Covid-19 patients, this would be but a small contribution to the society. Our investment is very small. We have the infrastructure, we need plant & machinery. Please advice.

  2. Hi… I am really Excited.for Achive oxygen plant knowledge…. Because..Cases of coronavirus have increased in India and patients do not get enough oxygen in the hospital as the death rate of patients is very high. So I got a little bit of information about the production of Oxygean. You should try to make sure that the patient is saved

  3. I have a ready 3500 sq.ft shed with infrastructure and electric 15kva at Guwahati in Assam. I am interested to to set up the said plant with a minimum cost.

  4. Dear Sir,

    Looking to the current covid pandemic and shortage of oxygen , we are interested to start manufacturing of oxygen plan.

    We are new in this field . Kindly advice and suggest with quatation.

    You may contact us on +91 9825782757

  5. Very nice post. I simply stumbled upon your weblog and wanted to mention that I’ve really enjoyed browsing your
    weblog posts. In any case I will be subscribing for your rss feed and
    I’m hoping you write again very soon!

  6. We are planning to setup liquid oxygen manufacturing plant and we need experts and professionals to guide us for setup. Kindly acknowledge us if you can be a guiding partner.

  7. In wake of present Covid conditions, we are thinking to install medical Oxy plant at small scale. We have a built up / working space of around 700 Sq Mts in a conforming industrial area IMT / building having BM, GF, FF & SF.

  8. Hi azhar this side from leh Ladakh
    I am interested in Oxygen plant
    How much cost for an oxygen plant.

    1. The cost ranges from 2 Crore to 10 Crore, depending on the size of the plant.
      Can you please share your contact details, so that we can contact you.

  9. Hi,

    Hope you are doing great.

    My Self CA Vivek Jangir, i need same help.

    One of client asked regarding planning of start Oxygen Manufacturing Plant.

    i request you please guide me & arrange a call.

    Thanks & Regards,
    Vivek Jangir

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