OXYGEN GAS — AN EMERGING SECTOR TO EXPLORE

Medical emergencies induced by the COVID-19 pandemic were responded to by governments all around the world. Nigeria, Africa’s most populous country, fought for the best use of oxygen, as did several other countries. Apart from industrial applications, oxygen is employed in a wide range of medical settings, ranging from general medicine to medical aid and emergency operations. Oxygen is a vital component of human life, although it is often overlooked as a life-saving essential medicine due to its natural availability through the air. Cornelius Drebbel’s discovery of oxygen from the heating saltpetre (potassium nitrate, KNO3) in 1608 marked the beginning of the product, but it went unnoticed. Three chemists now share credit for discovering oxygen: an Englishman, a Swede, and a Frenchman. Joseph Priestley was the first to write an account of the discovery of oxygen, which he accomplished in 1774 by focusing sunlight on mercuric oxide (HgO) and collecting the gas that resulted. He noticed that a candle in it burned brighter and that it was easier to breathe in. Carl Wilhelm Scheele, unbeknownst to Priestly, had created oxygen in June 1771. He wrote a description of his discovery, but it wasn’t published until 1777. Antoine Lavoisier also claimed to have discovered oxygen, and he proposed the name oxy-gene, which means acid-forming because he believed it to be the foundation of all acids.

Oxygen (O2) is a vital component of the atmosphere that makes up 20.94 per cent of the volume and 23 per cent of the weight of the air we breathe. It’s tasteless, odourless, and colourless. Oxygen is the most abundant element on the planet. Most terrestrial oxygen is bound with other elements in compounds such as silicates, oxides, and water because it forms compounds with almost all chemical components except noble gases. In rivers, lakes, and oceans, oxygen is also dissolved. The atmosphere is almost entirely made up of molecular oxygen.

Oxygen reacts vigorously with flammable materials, especially when it is pure, generating heat as a result of the reaction. Many reactions necessitate the presence of water or are aided by the application of a catalyst. The boiling/condensing point of oxygen is -297.3°F (-183°C). The gas is mildly soluble in water and alcohol and is about 1.1 times heavier than air. Oxygen is a pale blue liquid that is slightly heavier than the water below its boiling point. The second-largest volume of industrial gas is oxygen. When manufactured and given in the gaseous form, it is referred to as GOX or GO, and when in cryogenic liquid form, it is referred to as LOX or LO.

Cryogenic distillation produces huge quantities of high-purity oxygen as a gas or liquid, while adsorption processes create a lower-purity gas (usually around 93 per cent) (pressure swing adsorption, abbreviated as PSA, or vacuum-pressure swing adsorption, abbreviated as VPSA or more simply, VSA). Because of its reactivity, oxygen is frequently employed in place of or in addition to air to increase the amount of oxygen accessible for combustion or biological activity. This leads to higher reaction speeds and higher throughput in existing equipment, as well as reduced equipment sizes for new equipment.

For the customer, the timely supply of oxygen can be the difference between life and death. When it comes to the continual availability of oxygen, hospitals always prioritize it over the rest. Certain critical health problems, such as pneumonia, malaria, sepsis, and meningitis, require the use of oxygen. When children and mothers’ lives are in danger during medical treatment, they are frequently given medicinal oxygen to help them breathe. Because of its strong relationship with the respiratory system, it became even more important during the COVID-19 epidemic.

Medical oxygen is delivered to hospitals in cylinders that are filled at industrial gas plants. The cylinders are placed in the hospital basement or near the patient’s bed and connected by a conduit. Patients are charged based on how much they consume. A severe pneumonia youngster who stays 3–4 days in the hospital and consumes 4,000–8,000 cubic litres of oxygen would typically be paid $40–$60. The issue for medical and health administration is to expand the supply of medical oxygen while lowering the cost, ensuring that it is available where it is needed most and that it is free at the point of use. This necessitates increasing investment and dedication to ensure that oxygen infrastructure is at the heart of universal health coverage plans.

Uses of Oxygen

1. Gas welding, gas cutting, oxygen scarfing, flame cleaning, flame hardening, and flame straightening all use oxygen in conjunction with fuel gases.
2. In electric arc furnaces, oxygen is injected into the steel bath through a specific lance, allowing more scrap metal to be utilised.
3. In many oxidation processes, such as the production of ethylene oxide, propylene oxide, and synthesis gas, oxygen is used as a raw material.
4. Oxygen is used to enhance the airflow to the catalytic cracking regenerators, increasing their capacity.
5. It is used to obtain comparable results in sulfur recovery units. Catalysts are also regenerated by oxygen.
6. Oxygen is utilized in incinerators to provide more complete burning and elimination of dangerous and waste items.
7. Oxygen is becoming more significant as a bleaching agent. The lignin in the pulp must be eliminated during the bleaching process in order to produce high-quality bleached pulp.
8. In waste-water treatment, using oxygen instead of air allows current treatment plants to expanding their capacity.
9. Oxygen is employed in surgery, intensive care, inhalation therapy, and other procedures.
10. Oxygen is an essential component of human life.

Different types of Oxygen Sources (Unicef, 2020)

Despite the widespread usage of oxygen, the global supply of oxygen is concentrated in the hands of a small number of corporations, putting the African continent, particularly Nigeria, at a disadvantage. This is not unrelated to the industrialized world’s increased need for oxygen as a result of prevalent medical and health needs. Oxygen cylinders were transported to isolated places in Chad where oxygen was scarce. Oxygen concentrators were given to six health centres in the Democratic Republic of Congo that serve COVID-19 patients. In Madagascar, a supply of oxygen tanks is being distributed to 23 hospitals to treat severe COVID-19 patients. UNICEF assisted in the establishment of an oxygen generating facility at Kamuzu Central Hospital in Malawi, contributing to the country’s oxygen ecology. UNICEF and the government of Senegal are supplying oxygen to 64 health institutions in districts with high pneumonia prevalence through the SPRINT Project. UNICEF assisted in the rehabilitation of an oxygen plant in Zambia, which now produces 48 cylinders per day for medical usage. The supply situation has not progressed at the same rate as demand, giving fertile ground for investors to enter. Another potential opportunity is to convert industrial oxygen cylinders into medicinal oxygen cylinders. This is due to the emergency need for medical oxygen, which will result in additional orders being submitted.

Hidden Opportunities in Oxygen investment

By 2026, the oxygen market is expected to grow to $8 billion in size. This is where the opportunity resides, and African investors should not let this opportunity pass them by. Nigeria will clearly be unable to meet the rising demand for oxygen gas in its hospitals and health centres by December 2020, requiring around 285.80 million tons valued at approximately N669.53 billion. Due to a failure to satisfy demand, the product’s price in the country has increased. In some facilities, the cost of giving it to patients has risen to N4,500 per hour for adults and N3,000 per hour for children. The price of oxygen gas soared to between N18, 000 and N20,000 per cylinder between August 2020 and January 2021, depending on the hospital.

Supplying the multi-industry, where oxygen is employed with fuel gases in gas welding, gas cutting, oxygen scarfing, flame cleaning, flame hardening, and flame straightening, is also an opportunity. To provide a high cutting speed and a clean-cut when gas cutting, the oxygen must be of good quality. Investors can also profit by supplying the steel industry, which continues to be the greatest consumer of oxygen (Metal Manufacturer). Modern steelmaking relies largely on the use of oxygen in blast furnaces and open-hearth furnaces to enrich air and enhance combustion temperatures, as well as to replace coke with other combustible materials. Unwanted carbon mixes with oxygen during the steelmaking process to generate carbon oxides, which escape as gases. Oxygen is delivered into the steel bath via a specific lance, allowing more scrap metal to be utilised in electric arc furnaces.

Oxygen is used as a raw material in many oxidation processes, including the manufacturing of ethylene oxide, propylene oxide, and synthesis gas using partial oxidation of a wide range of hydrocarbons, ethylene dichloride, hydrogen peroxide, nitric acid, vinyl chloride, and phthalic acid using partial oxidation of a wide range of hydrocarbons, ethylene dichloride, hydrogen peroxide, nitric acid, vinyl chloride, and

Opportunities also arose in refineries, where oxygen was employed to enhance the air feed to catalytic cracking regenerators, resulting in increased capacity. Sulfur recovery units use it to achieve similar results. Catalysts are also regenerated by oxygen. Incinerators use oxygen to accomplish more complete combustion and annihilation of hazardous and waste materials.

Another potential market for investors is the pulp and paper industry, where oxygen is becoming more significant as a bleaching agent. The lignin in the pulp must be eliminated during the bleaching process in order to produce high-quality bleached pulp. Chlorine has been employed in the past, but new oxygen-based techniques are now being used to reduce water contamination. In the bleaching process, oxygen and caustic soda can substitute hypochlorite and chlorine dioxide, resulting in decreased costs.

The use of oxygen rather than air in waste-water treatment allows existing treatment plants to expanding their capacity. Injecting oxygen into sewers minimizes the development of hydrogen sulfide, which reduces corrosion and stink.

Oxygen is in high demand in the Health Care industry, where it is used for surgery, intensive care, inhalation therapy, and many more applications. Oxygen is often delivered to hospitals in bulk liquid form and then distributed to users. It helps patients with respiratory issues, saving lives and improving patient comfort.

Risks

Because of the current high pressure in the oxygen gas cylinder industry, there is a significant risk to the security of its transportation. It must function according to a set of separate norms. As a result, there is the possibility of risk. In this method, you are likely to gain an opportunity to make millions by starting this type of company venture, but you must be cautious and make sensible decisions in this industry. In the oxygen plant business plan, you must develop a strategy for dealing with the hazards that your company faces. Investing in oxygen comes with the following risks.

What Needs to be Done

It is an irrefutable fact that if you keep to the fundamentals of the market, the oxygen business will be extremely profitable. To begin, your oxygen plant business plan should include a feasibility analysis of the location where you wish to set up shop. Furthermore, it is critical to comprehend government legislation, the expenditure required to create an oxygen plant, market trends, and so on. While you aim to start an oxygen plant firm, you must first learn about the logistics of the industry. You should also be familiar with the gear and equipment used in the Oxygen Plant’s setup. Furthermore, there are a variety of oxygen concentrations accessible on the market. In addition, the Oxygen Plant Business necessitates the purchase of some extra equipment. You’ll be able to start your plant business quickly once you’ve familiarized yourself with the current market conditions and government laws. After you’ve completed your oxygen plant business plan, it’s time to get started on the execution phase. Despite the fact that the machinery is imported, the profits from the venture are worth the money invested in the short and long term. Contact KIAKIAGAS for more information on comprehensive and workable feasibility studies, business plans, machine procurement and installation, standard packaging methods, financial arrangements, and workforce recruiting and training. Hiring an expert does not negate your responsibility for ensuring that the feasibility study is conducted properly. This has given us more reasons at KIAKIAGAS Nigeria Limited to engage you in the project and the evaluation process, understand the issues involved, question the basic assumptions used in the study, and challenge the conclusions of the study.

If you are a busy person, a team from your organization can represent you. Your representatives serve as a link between the KIAKIAGAS and your organization, ensuring that the study moves forward in accordance with the project’s goals. They will be fully carried along to ensure that they have a solid understanding of the project in order to accomplish these jobs effectively.

A draft of the final report will be provided by KIAKIAGAS. Before you start talking about the study’s conclusions and how they affect the feasibility of your project, you should review it to see if it’s accurate, relevant, and complete, and if there’s any ambiguity, you should ask for more clarification and analysis. So, before you accept the study results, KIAKIAGAS will educate you and provide a feasible solution.

KiakiaGas Limited is a leading Gas business in Lagos, Nigeria with expertise in carrying out feasibility study/Business plans on all forms of gas, including oxygen and other non-natural gas and LPG retailing, New Gas Market development, Building of Gas Plants and Gas strategy advisory. Supply by KiakiaGas provides LPG and Non-LPG Gasses products and equipment for corporate and institutional clients for the project and operational needs. If you need a partner with hands-on local expertise in the Nigerian Gas space or any of our bespoke solutions/services, kindly mail hello@kiakiagas.com to learn more.to learn more.

.