Production process

How Is Oxygen Produced Industrially?

Oxygen & PSA·9 min read·Updated 2 Aug 2026

Effectively all industrial oxygen comes from the air around us, separated by one of two routes — cryogenic distillation or adsorption. Which one suits you comes down to purity, scale, and whether you want gas delivered or generated on site.

The short answer

Industrial oxygen is extracted from atmospheric air, which is about 21% oxygen, 78% nitrogen and 1% argon. There are two commercial routes.

Cryogenic air separation cools air until it liquefies, then distils it into its components — producing high purity oxygen (99.5%+) plus nitrogen and argon as saleable products, at large scale. Pressure swing adsorption (PSA) passes compressed air through a zeolite molecular sieve that holds nitrogen back and lets oxygen through, producing 93 – 95% oxygen at small to medium scale, generated on site.

Neither creates oxygen. Both are separation processes — the oxygen was always in the air.

Cryogenic air separation, step by step

  1. 1
    1 · Filtration and compression
    Air is drawn in, filtered of dust and compressed. This is the largest single energy cost in the whole process.
  2. 2
    2 · Pre-purification
    Water vapour, carbon dioxide and hydrocarbons are removed on molecular sieve beds. This is safety-critical: any hydrocarbon carried forward concentrates in the liquid oxygen, where it becomes a serious explosion hazard.
  3. 3
    3 · Heat exchange
    The clean air is cooled against the cold product streams leaving the plant, recovering refrigeration rather than wasting it.
  4. 4
    4 · Expansion and liquefaction
    Further cooling by expansion takes the air to around −185 °C, where it liquefies.
  5. 5
    5 · Distillation
    The liquid air is fractionated in a distillation column. The components boil at different temperatures — nitrogen at −195.8 °C, argon at −185.8 °C, oxygen at −183.0 °C — so they separate by boiling point, exactly as in any distillation.
  6. 6
    6 · Product take-off
    Oxygen is drawn off as liquid for storage and tanker delivery, or vaporised and compressed into cylinders. Nitrogen and argon are recovered from the same column as saleable products.

That ten-degree spread between the three boiling points is the entire basis of the process — and the reason argon is a by-product of oxygen production rather than something obtained separately.

PSA: adsorption instead of cold

A PSA oxygen plant uses no refrigeration at all. Compressed air passes through a bed of zeolite molecular sieve, which adsorbs nitrogen preferentially and lets oxygen through as product gas.

Because the bed saturates, PSA plants run in pairs. One tower produces oxygen while the other is depressurised to release the captured nitrogen to atmosphere; the towers then swap, typically on a cycle of under a minute. The swing between adsorption and regeneration pressure is what gives the process its name.

The practical ceiling is around 93 – 95% oxygen, with the remainder mostly argon — which the sieve does not separate well from oxygen. For flame cutting, furnace enrichment, effluent treatment and aquaculture that is entirely adequate.

Choosing between them

Cryogenic air separationPSA on-site generation
Typical purity99.5% and above93 – 95%
ScaleLarge — regional plants serving many customersSmall to medium — sized to one site
Co-productsNitrogen and argon recovered and soldNone — nitrogen is vented
Capital costVery highModerate
Start-up timeHours to days from coldMinutes
Best suited toHigh purity, liquid supply, merchant gas productionSteady on-site demand where 93 – 95% suffices
Delivered asCylinders, banks or liquid by road tankerPiped directly from the plant on your site

The decision usually turns on two questions: does your process genuinely need more than 95%, and is consumption steady enough to justify owning a plant? Below roughly a cylinder bank a week, delivered cylinders are simpler and cheaper. Well above that, on-site generation generally costs less per cubic metre and removes the delivery dependency.

How medical oxygen is produced

Medical oxygen comes from the same cryogenic process. What differs is everything after the column: batch testing against the pharmacopoeial monograph, release documentation, retained samples, a dedicated controlled cylinder fleet, and licensed filling premises.

Medical PSA installations also exist, particularly for hospital pipelines, but they are a distinct equipment specification with their own validation, continuous monitoring and alarm requirements — not an industrial PSA plant with a different label.

The hydrocarbon rule in air separation

One detail deserves emphasis, because it is where cryogenic plants have historically failed catastrophically. Hydrocarbons in the incoming air — from nearby traffic, solvent use or a plant flare — are not very soluble in liquid oxygen, and acetylene in particular precipitates as a solid below about −195 °C.

Solid hydrocarbon accumulating in a liquid oxygen bath is an explosion waiting for a trigger. This is why pre-purification is treated as safety equipment rather than a quality step, and why air-intake siting is a serious engineering decision rather than a convenience.

Frequently asked questions

From atmospheric air, by one of two routes. Cryogenic air separation liquefies air and distils it into oxygen, nitrogen and argon at 99.5%+ purity and large scale. Pressure swing adsorption passes compressed air through a zeolite sieve that holds back nitrogen, producing 93 – 95% oxygen on site.
Cryogenic separation uses extreme cold and distillation to reach 99.5%+ and also recovers nitrogen and argon, but needs a large plant. PSA uses adsorption at ambient temperature, reaches 93 – 95%, produces no co-products, and is sized to a single site with minutes rather than hours of start-up.
Because the zeolite sieve separates nitrogen from oxygen well but does not separate argon from oxygen well. Air contains roughly 1% argon, which concentrates in the product stream and sets the practical purity ceiling.
By the same cryogenic air separation process as industrial oxygen. The difference lies in what follows: batch testing against the Indian Pharmacopoeia monograph, release documentation, retained samples, a dedicated controlled cylinder fleet and licensed filling premises.
Extracted. Both commercial processes separate oxygen already present in atmospheric air — about 21% of it — rather than creating it chemically.
Because argon boils at −185.8 °C, between nitrogen at −195.8 °C and oxygen at −183.0 °C. Cryogenic distillation separating oxygen from nitrogen necessarily produces an argon-rich fraction in between, which is drawn off and purified.
It depends on purity and steady volume. If your process needs above 95%, PSA cannot meet it. If 93 – 95% suffices and consumption is well above a cylinder bank a week, on-site generation usually costs less per cubic metre and removes the delivery dependency.

Oxygen supply or an on-site plant?

IIGAS supplies industrial oxygen and builds PSA oxygen plants and cylinder-filling stations. Send us your purity and consumption and we will compare the options honestly.