Oxygen plant Project Report MSME

SK Agarwal
3 min readSep 9, 2021

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Oxygen is essential for respiration for sustaining all living beings. In our atmosphere, it is generated by plants through a process called photosynthesis. The oxygen generated from ambient air through liquefaction followed by distillation is known as industrial oxygen with purity between 90% and 95%. It is used in various industrial applications including supporting combustion of acetylene gas for sustaining hot flames which is used for cutting, heating, brazing and welding of metals. The vital gas is widely used in furnaces for making of steel and for burning of explosives in mines. When the purity of oxygen is between 95% and 99%, it is used for medical applications mainly for providing artificial respiration.

Get Cost estimate for Setup Oxygen Plant Factory Project with Cylinder Filling Station.

How to get oxygen plant project report MSME

Micro, Small and Medium Enterprise are being encouraged under various schemes of the government. In the wake of the global pandemic there are numerous schemes that incentivize setting up medical oxygen plant for administering oxygen to COVID-19 infected patients. There are also considerable subsidies for the entrepreneurs entering into PSA oxygen plants. Moreover, getting a license for medical oxygen plant has been made very simple by the government. However, the demand for oxygen in medical and industrial sectors increases with rapid industrialization.

For getting oxygen plant project report MSME, you will have to visit the nodal office in your state under the Ministry of MSME. On visiting their office, you will get all the details regarding credit and subsidies your project is likely to get. There are numerous other projects supported by the government under the banner of “Make in India”. There are two types of plants that manufacture of oxygen which are classified as industrial oxygen plant and tonnage oxygen plant.

The former are used for generating high purity oxygen. The gas is mostly in the liquid form and is provided to clients in cylinders and tankers for re-evaporation for use. The latter is used for generating oxygen on a very large scale mostly with low purity ranging from 90% to 95%. It mostly distributes the gas to the industries through pipelines in the surrounding.

Technical Working of Oxygen Plants

Oxygen plants are fabricated with standard quality material with certifications from reputed quality assurance companies. The plants are equipped with multi-stage air compressor that takes ambient air and passes it through an intake filter for removing dust particles. Technical details will be included in oxygen plant project report MSME with explanation. After compression the compressed air goes through the chilling unit, moisture separator and oil absorber.

Then, the air enters the molecular sieve where moisture and carbon dioxide are removed. Now the air enters the heat exchanger where it gets cooled by the outgoing oxygen. The air is cooled by the main heat exchanger and an expansion engine. Some of the air goes through an expansion valve and the remaining through the expansion engine. However, both the streams go into the bottom of a rectification column where it undergoes liquefaction. Here the rich liquid from the bottom column gets expanded though an expansion to the upper column. Poor liquid also gets pushed through another valve to the upper column. Liquid oxygen so collected is pumped with a liquid oxygen pump. Nitrogen gas can also be collected as a by-product of oxygen. However, liquid nitrogen pump is required for pumping nitrogen into nitrogen cylinder manifold.

Detailed finances for oxygen plant project

Finances involved in setting up an oxygen gas plant include land use and constructing shed for running the operations of the plant. The land area including shed would depend upon the size of the project. Plant and machinery would account for 90% of the costing incurred. The budget includes the pre-operative expenses such as electrification, pole erection with transformer150KVA, office furniture , empty cylinders, etc. Working capital will be required for paying salaries of plant manager, technician and watchman.

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SK Agarwal

Technical Director@UNIVERSALBOSCHI, Masters in Mechanical Engineering (BITS), Specialization in designing, manufacturing Oxygen Nitrogen Air Separation Plants.