Onsite vs. Delivered Oxygen for Biogas Plants: A Comprehensive Cost Benefit Analysis

Oxygen plays a crucial role in the efficient operation of biogas plants, particularly in the desulfurization process. Removing hydrogen sulfide (H2S) from raw biogas is essential not only for protecting equipment from corrosion but also for producing high-quality gas that meets safety and environmental standards. However, choosing between onsite vs. delivered oxygen for biogas plants can be a challenging decision.

This guide explores the cost-benefit landscape of these two options, helping you identify the most sustainable and efficient solution for your biogas plant.

Understanding Oxygen Requirements in Biogas Plants

One of the most critical applications of oxygen in biogas plants is in the desulfurization process, where it plays a pivotal role in ensuring that hydrogen sulfide levels are kept in check, thus safeguarding process equipment, process piping and environmental health.

The consumption of oxygen is significantly influenced by various factors including:

  • Biogas Flow Rate: Higher flow rates require more oxygen for effective treatment.
  • H2S Concentration: Raw biogas with elevated H2S levels demands greater oxygen input for complete desulfurization.
  • Desired Treated Gas Quality: Meeting stricter emission regulations may necessitate additional oxygen use.

Delivered Oxygen Options Costs and Considerations

Below is a breakdown of the costs for delivered oxygen:

Oxygen Cylinders

Capital Costs

  • Minimal initial investment, limited to buying or renting cylinder racks and safety equipment.

Operational Costs

  • High ongoing expenses due to regularly purchasing cylinders.
  • Delivery charges, especially for plants in remote locations.
  • Cylinder rental fees (if applicable), handling costs for replacement, and potential demurrage charges for unused cylinders.

Long-Term Considerations

  • Significant reliance on external suppliers creates supply chain vulnerabilities.
  • Costs are sensitive to price fluctuations and location-based surcharges.

Logistical and Environmental Challenges

  • Requires safe storage spaces compliant with regulations.
  • Regular cylinder deliveries contribute to increased transportation emissions.

Liquid Oxygen (LOX)

Capital Costs

  • The installation of bulk LOX storage tanks, associated piping, and safety equipment.

Operational Costs

  • Lower unit cost for oxygen compared to cylinders but higher upfront commitment due to minimum order quantities.
  • Delivery charges are less frequent but potentially high depending on location.
  • Training for handling cryogenic liquids is mandatory.

Long-Term Considerations

  • Reduced logistical frequency but still dependent on supplier delivery schedules.
  • Being contractually tied to a single LOX supplier for up to a 5 year period.

Environmental Impact

  • Despite less frequent deliveries then cylinder oxygen, emissions from transport remain a factor.

Onsite Oxygen Generation Costs and Considerations

Below are the benefits of onsite oxygen generators for biogas plants:

Pressure Swing Adsorption (PSA) Oxygen Generators

Capital Costs

  • Higher upfront investment for the generator unit, air compressor, and storage tank.

Operational Costs

  • Electricity usage for compressors.
  • Routine maintenance includes filter replacement and desiccant replenishment.

Long-Term Savings

  • Eliminates reliance on external oxygen purchases.
  • Predictable and stable operating costs over time.

Logistical and Environmental Advantages

  • Continuous oxygen supply with minimal operational interruptions.
  • No transportation-related emissions.

Key Considerations When Choosing Between Onsite and Delivered Oxygen

Aside from the costs of onsite vs. delivered oxygen, here are some other factors to consider:

  • Reliability and Consistency of Supply: Onsite generators offer unmatched reliability by providing a continuous, on-demand oxygen supply. Delivered options, on the other hand, are at risk of delays or shortages during disruptions in supplier logistics.
  • Safety: Handling high-pressure cylinders or cryogenic liquids carries inherent risks, while onsite generators offer a safer alternative requiring minimal handling and external intervention.
  • Space Requirements: Cylinder storage and LOX tanks demand dedicated spaces with adherence to safety protocols. Conversely, onsite systems often require a smaller footprint.
  • Scalability: Onsite oxygen generation systems are inherently more scalable, enabling tailored oxygen production as your biogas plant expands. Delivered options may require frequent logistical adjustments to accommodate increased demand.
  • Environmental Impact: Delivered oxygen solutions come with significant emissions from transportation. Onsite generators, though reliant on electricity, typically have a lower carbon footprint, especially when powered by renewable energy sources.
  • Independence and Control: Onsite generation empowers operators with increased autonomy, eliminating supplier dependency and offering direct control over oxygen production.

Optimizing Costs and Sustainability in Biogas Plants

Determining whether to opt for onsite vs. delivered oxygen for biogas plants ultimately depends on your unique needs and operational priorities. Delivered oxygen might suit smaller-scale operations or those with infrequent needs, while onsite generation offers long-term sustainability, reliability, and cost savings for larger and more consistent demand.

To future-proof your operations and achieve both operational and environmental goals, contact Advanced Gas Technologies (AGT) today. We offer tailored, high-performance onsite oxygen generator solutions that are designed to meet the specific needs of your biogas plants.