Opportunities for Renewable Oxygen Utilization from Electrolysis Plants

Abstract Oxygen is a versatile industrial gas and plays an important role across several industries, including steel, cement, pulp and paper, wastewater treatment, food and beverage, etc. Today, more than 500 million tons per annum (mtpa) of oxygen is consumed by industry globally. Around 90% of this is produced conventionally via cryogenic air separation units (ASUs) and 10% via pressure swing absorption (PSA). Over the coming decades, ASUs will likely continue to serve as the dominant method of oxygen production. However, the impending build out of electrolyzer plants to meet green hydrogen demand is opening a new low-cost production avenue that can be capitalized on. This paper explores opportunities for renewable oxygen utilization from electrolyzer plants and discusses important considerations for compression. Making a commercial case for oxygen utilization requires evaluation of many different variables, including plant size, location, tax frameworks, available subsidies, etc. In cases where dedicated oxygen pipelines are close by, a compelling business case can be made for oxygen capture and compression. To illustrate the potential return on investment (ROI), the paper evaluates a hypothetical 500 megawatt (MW) electrolyzer plant. For these projects, selection of the compression technology is critical, as it represents a significant portion of the oxygen plant's total cost of ownership.