When companies compare on-site oxygen generation with delivered oxygen, the first question is often the equipment price. That figure, however, tells only part of the story. The final industrial oxygen generator cost depends on the oxygen flow, purity and pressure required, as well as the compressed-air system, storage, installation and other equipment included in the project. This is why two oxygen-generation projects with similar output can have very different investment costs. This guide looks at the main cost factors, the difference between a generator and a complete oxygen plant, and the operating costs that should be considered when evaluating on-site oxygen production.
Why Published Oxygen Generator Prices Vary
There is no single price for an industrial oxygen generator.
The system has to be sized around the application. Oxygen flow, purity, operating pressure and production hours all affect the required configuration. The existing site infrastructure also matters.
A quotation may cover the generator only, or it may include the compressor, air treatment, storage, controls, installation and commissioning.
Before comparing prices, it is therefore important to check the exact scope of supply.
Generator-Only Price vs Complete Plant Cost
The price of an oxygen generator is not necessarily the same as the cost of a complete oxygen plant.
A generator-only solution may be sufficient when a suitable compressed-air system and the necessary air treatment are already available at the site.
A complete plant can include the oxygen generator together with the compressor, filters, dryer, storage, regulation and control equipment.
BERG’s complete oxygen plant solutions are configured according to the requirements of the application.
When reviewing a quotation, ask a simple question: Does the price cover the generator, or everything needed to produce oxygen at the required pressure and flow?
That distinction can have a significant impact on the total project cost.
Main Cost Drivers: Flow, Purity and Pressure
Flow, purity and pressure are usually the first parameters to define when sizing an oxygen generation system.
Factors Influencing the Cost
- Oxygen Flow: A higher oxygen demand generally means a larger generation system and greater compressed-air capacity. Average consumption alone is not enough. Short periods of peak demand can affect the required system size, particularly when several users operate at the same time.
- Oxygen Purity: The required purity should come from the process specification. With PSA oxygen generation, the relationship between purity, output and compressed-air demand needs to be considered during system sizing. Choosing a purity level higher than the process actually requires may increase both equipment and operating costs. BERG’s PSA oxygen generators are configured around the required purity and flow rather than a one-size-fits-all specification.
- Operating Pressure: The pressure required at the point of use also affects the system design. Flow, purity and pressure should therefore be defined together when requesting a quotation.
Compressed-Air Station, Dryer, Filters and Storage
The generator itself is only one part of an on-site oxygen system.
PSA oxygen generation requires clean, dry and suitably compressed air. Depending on the existing installation, the project may therefore include:
- Air compressor
- Air receiver
- Filters
- Air dryer
- Oxygen storage
- Pressure regulation and controls
A facility with an existing compressed-air station may need only part of this equipment. A new installation may require a complete air and oxygen supply system.
This is one reason why equipment prices can vary considerably even when the required oxygen output is similar.
Installation, Export, Commissioning and Training
The initial investment does not end with the equipment purchase.
Project costs may also include mechanical and electrical installation, piping, transport, commissioning, operator training and technical documentation.
For export projects, shipping and site-specific requirements can add further costs.
These items should be identified clearly in the quotation. Otherwise, a lower equipment price may simply mean that more of the project scope is being left outside the offer.
Operating Cost per Nm³ of Oxygen
The purchase price is only one part of the economic picture. Once the system is running, electricity, compressed air and maintenance become the main cost considerations.
For a PSA system, the compressor is particularly important because compressed air is the feed source for oxygen generation.
Actual onsite oxygen cost depends on factors such as oxygen purity, production pressure, operating hours and the efficiency of the compressed-air system.
For this reason, oxygen cost is often more useful when expressed as a cost per Nm³ of oxygen produced rather than as total electricity consumption alone.
See BERG’s article on oxygen generator energy consumption for more information on the energy side of the calculation.
Total Cost of Ownership and Payback
A realistic comparison should look beyond the initial purchase price.
Oxygen generator total cost of ownership includes the initial investment together with the costs of operating and maintaining the system over its working life.
A practical calculation can include:
This can then be compared with the existing cost of delivered oxygen, including cylinders or bulk supply, transport, storage and related handling costs.
The result gives a much clearer basis for assessing payback.
The calculation should always use site-specific data. Oxygen consumption, operating hours, electricity prices and the current delivered-gas price can differ significantly from one facility to another.
Information Required for a Firm Offer
A supplier cannot determine the final industrial oxygen generator cost from oxygen purity alone.
For a meaningful quotation, the following information is normally required:
- Required oxygen purity
- Average oxygen flow
- Peak oxygen demand
- Required outlet pressure
- Operating hours
- Existing compressed-air capacity
- Available air treatment
- Required oxygen storage
- Installation conditions
- Country of installation
With this information, the supplier can define the appropriate system scope instead of simply quoting a generator based on nominal output.
FAQs
Q1: What determines industrial oxygen generator cost?
The main factors are oxygen flow, purity, pressure, operating profile and the equipment required around the generator. Installation and site conditions can also affect the final project cost.
Q2: What is the price of a PSA oxygen generator?
There is no standard PSA oxygen generator price. The quotation depends on the required purity, flow, pressure and overall system scope.
Q3: What is included in oxygen plant cost?
Depending on the project, oxygen plant cost may include the generator, compressor, air treatment, dryer, filters, storage, controls, installation and commissioning.
How is onsite oxygen cost calculated?
Start with actual oxygen demand and determine the energy, compressed-air and maintenance requirements. The resulting cost per Nm³ can then be compared with the current cost of delivered oxygen.
Q5: How often does an oxygen generator require upkeep?
Routine maintenance depends on the machine’s usage and design but is usually required every 6-twelve months.