Material Insights · Understanding the Material World

Oxygen: Feedstocks

The feedstock is free, the electricity is not

What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.

The feedstock is free air. The real input is electricity, which is 50-70% of the cash cost of oxygen from an ASU (indicative). A producer with cheap, steady power and a large anchor customer has the lowest cost. Capital charge on the ASU is most of the rest, which is why tonnage oxygen is sold under long take-or-pay contracts.

Inputs per tonne

InputQuantity per tonneRoleShare of costSource
Airabout 4.3 t of air per t O2 (basis: 23.1% O2 by mass)oxygen sourcezeroair composition
Electricityabout 200-300 kWh per t gaseous O2; 600-1,000 kWh per t liquid (indicative)air compression and liquefactionabout 50-70% of cash cost (indicative)indicative
Zeo Zeolitessmall, replaced every few yearsair purification and PSA bedsunder 2% (indicative)indicative

Who is low-cost, and why

Low cost goes to large on-site plants with cheap power: Middle East and China. In India, contract oxygen was about 8.1 US cents per Nm3 (about $57/t) in May 2023 against cash costs of 3.5-4.0 cents (Intratec). Liquid and cylinder oxygen sell at several times the pipeline price because of liquefaction and distribution.

What it is made into

ProductNote
EO Ethylene oxideoxygen-based direct oxidation
TiO2 Titanium dioxidechloride process burns TiCl4 in oxygen
H2 Hydrogencoal gasification and ATR need oxygen
MeOH Methanolcoal gasification and ATR syngas