Industrial Gases

Industrial gas is a group of gases that are commercially manufactured and sold for uses in other applications. The most common industrial gases are:air gases - oxygen (O2), nitrogen (N2) and argon (Ar) rare gases - such as helium (He), krypton (Kr), xenon (Xe) and neon (Ne) and other gases like hydrogen (H2), carbon monoxide (CO), carbon dioxide (CO2) and nitrous oxide (N2O) ,chlorine (Cl2), hydrogen chloride (HCl) and sulphur dioxide (SO2) ,acetylene (C2H2), methane (CH4) and propane (C3H8).

In addition, there are many different mixtures of these and other gases to meet the needs of specific applications. The industrial and medical gases industry serves a very large number of customers in the whole community. Industrial gases are essential for almost all manufacturing. Large quantities of oxygen, nitrogen and argon are used in the steel and metal industry. Shipyards and the automotive industry use acetylene, propane, mixtures of fuel gases and oxygen for cutting and welding. Liquid nitrogen is vital in recycling plastics, packaging and scrap tyres. The chemical industry employs all major industrial gases as a raw material or for inerting. The other smaller market segment consists of cylinder gas and mixtures.

According to the Freedonia group, inc., a Cleveland-based industry research firm, world demand for industrial gases is forecast to increase 6.9% annually to $36.8 billion in 2011, with volume exceeding 300-bcm (billion cubic meters). Asia/pacific is the largest consuming region because of rapid growth in developing industrial markets, especially those of china and India.

Coming back to India, there are presently over 300 small & medium size plants and approximately 25 large tonnage plants all over the country. These gases are supplied through pipelines to captive customers in adjacent factories; in cryogenic transport tanks for bulk deliveries to long distance customers; or filled in cylinders.

The present annual turnover of the gas industry, excluding captive production is about Rs. 3,000 crores ($650 million). With increased industrialization, the demand pattern of industrial gases is also changing fast. Modern application in the food processing industry, agro industries, healthcare and technology are growing at a tremendous pace. This has driven the industry to adopt stringent quality control systems and an efficient distribution network.

Major players in India include BOC India, INOX Air Products Ltd., Jindal Praxair Oxygen Co. Ltd., Air Liquide India Holding P.Ltd., Aims Industries Ltd etc.

The Indian gas industry is growing at an average rate of 12 per cent per annum during the last couple of years, with the industrial oxygen growing consistently at 15-17 per cent per annum. The growth of industrial gas industry can be easily forecast on the basis of projections of the steel and other metallurgical industry. Steel demand is seen rising by 10% in the fiscal year to march 2011, helped by higher spending on infrastructure will continue to drive growth of the gas industry. Natural gas comprises 9 % of India's primary energy consumption and it will be 14% of energy mix by 2010. Demand for natural gas is also likely to increase at an average annual growth rate of 7.3%.Metals production and fabrication will continue to be the largest market for industrial gases, accounting for 31% of total demand in value terms in coming years. The second largest market will be the chemical processing/petroleum refining segment. The medical/healthcare market, though smaller in size, will be the fastest growing and record gains from the expansion of healthcare services in developing nations and rapidly increasing use of home healthcare respiratory therapies in advanced economics. Hydrogen is gaining prominence and most companies are striving to develop technologies that can efficiently exploit the potential of hydrogen. Increased use of natural gas will create an opportunity for higher production of argon and carbon dioxide. The Industrial gas industry has a very bright future in the coming years.

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Oxygen and Nitrogen Gas Plant

Oxygen (CO2, gas at 00/1 matm., 1.429g./l, crit. Pressure, 49.7 Matm.) is a colorless, odourless, and tasteless gas, somewhat heavier than air. It is one of the most active elements and plays on essential part in the respiration of living cells and in combustion. Oxygen is required for cutting and welding of steel materials for manufacturing and repairs is various industries. Ship repairing, fabrication works etc. require large amounts of oxygen. It is also required for medication purpose and deep sea driving. Nitrogen gas used in the production of ammonia which in turn is used for the manufacture of urea and ammonium phosphate, which are fertilizers of great use. It is used for blanketing hazardous chemicals which will an inert atmosphere. Liquid Nitrogen is also used to maintain low temperatures during the transportation of frozen food. Oxygen and Nitrogen are the most important industrial gases. At present there are 190 units in the country. As the quantity of oxygen required in integrated steel plants is huge. The excess oxygen is compressed and bottled in steel cylinders and supplied to engineering industries. There is a very good market for new entrepreneur.
Plant capacity: 1440 Cubie Meter/DayPlant & machinery: 50 Lacs
Working capital: 18 LacsT.C.I: 101 Lacs
Return: 18.19%Break even: 75.00%
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Industrial and Pharmaceutical Grade Oxygen (500 Industrial Gas Cylinders and 500 medicated gas cylinders)

This substance, which occupies 21 percent of the earth’s atmosphere, has a number of very important uses. Oxygen is a colourless, odorless and tasteless gas that is essential to the support of life. All elements except the inter gases combine directly with oxygen to form oxides. Oxygen is nonflammable but is an oxidizer that readily supports combustion. It is used extensively in medical applications for therapeutic purposes, for resuscition in asphyxia and with others gases in anesthesia. Also it is used in high altitude flying and deep sea diving and it is an inhalant and a fuel oxidizer in the U.S. space program. Oxygen is a value in the treatment of carbon monoxide poisoning and in providing enhanced oxygenation in severe anaemia or in the treatment of respiratory depression until more specific treatments are started. Commercial oxygen is produced in India by Indian Oxygen Ltd., Kolkata, Asiatic oxygen and acetylene Co. Ghaziabad. India oxygen Ltd. and Modi Vanaspati manufacturing also compress by product oxygen from Water electrolysis. There is a very good scope for new industry in this field.
Plant capacity: 300000 Cylinders/AnnumPlant & machinery: 675 Lacs
Working capital: 100 LacsT.C.I: 1006 Lacs
Return: 30.00%Break even: 54.00%
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GAS FILLING OF L.P.G. CYLINDER

Bulk petroleum and hydrocarbons generally are most commonly stored in cylindrical tanks of welded steel. For quantities upto about 250 nos. the cylindrical tanks may be carried horizontally to variations in temperatures. L.P.G. is used mainly for cooking purposes in India. It is usually filled in small cylinders to be used in household cooking. It is also used for drying or in industry with oxygen for cutting welding, brazing, heating etc. It is used as industrial fuels, boiler fuels, furnace fuels also as internal combustion engine fuel. At present there are four units in the organized sector manufacturing L.P.G. valves and regulators. There are also many units operating in the small scale sector to manufacture L.P.G. valves and regulators. The future demand for L.P.G. pressure regulators and valves would depend upon L.P.G. cylinders produced and used for domestic purpose. The production of L.P.G. cylinders is estimated to increase at 9 percent per annum. There is good scope for new entrants.
Plant capacity: 10000 /dayPlant & machinery: Rs. 1 crores
Working capital: -T.C.I: Rs. 27 crores
Return: 54.00%Break even: 21.00%
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BIOGAS PRODUCTION

An effective biogas programme leads to efficient use of cow dung for gas recovery and partial supplement to plant nutrient requirement. Biogas programme leads to improvement in rural living including rural sanitation. Biogas fermentation a process occurring widely in nature can be defined as a biological process, in which biomass or organic matter, in the absence of oxygen, is converted into methane and carbon dioxide. It is characterized by low nutrient requirement, low production of methane as a useful end product. Waste materials like cow dung, buffalo dung, horse dung, sheep droppings, camel dung, goat droppings, piggery waste and poultry droppings have been observed to exhibit varying gas production behavior. Poultry droppings have been found to be the quickest and the highest gas producing material, whereas the cow dung as the lowest. There is a good scope for new entrants to invest in this project.
Plant capacity: 450 KGS/dayPlant & machinery: Rs. 6 lakhs
Working capital: -T.C.I: Rs. 29 lakhs
Return: 40.00%Break even: 35.00%
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ACETYLENE GAS

Acetylene is a colourless inflammable gas. It is an endothermic compound. It is an endothermic compound. Its heat of formation being nearly 50 Kg. Cal.g.mol. Both the gas (tc, 370; Pc, 62 atm.) and the liquid (b.p., 83.60) are highly explosive, particularly under pressure. The gas forms explosive mixtures with air. Dlt burns with sufficient air, it gives a clear white light. At present the most important use of acetylene is in the welding and cutting industry. Nearly all metals can be welded by the oxy-acetylene flame, which reaches a temperature of nearly 350000. Equal quantities of oxygen and acetylene are usually consumed during normal welding. It is widely used for the welding of nonferrous metals, particularly aluminium in aircraft and automobile industries and for welding copper in chemical industry. It has been estimated that future production of dissolved acetylene gas would increase at the rate of 8%. It is assumed that the production of dissolved acetylene gas would increase at the rate of which engineering industry is expanding. A new entrepreneur can well venture in this field by installing an unit of acetylene gas to satisfy present and demand of people.
Plant capacity: 240 Cubic Meter/dayPlant & machinery: 44 Lakhs
Working capital: -T.C.I: 163 Lakhs
Return: 40.00%Break even: 44.00%
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OXYGEN GAS PLANT

Oxygen as a raw material for synthesizing chemical compounds is in daily life. Liquid oxygen mixed with carbon black may yet become an important and cheap explosive. On the commercial scale, it is made from atmospheric air small production by the electrolysis of water is the result of special circumstances. Oxygen is used in industry for fusion, welding of metals, metal cutting and other purposes. It is also used in medical practice and in the production of liquid oxygen explosive employed in blasting operations. To looking its uses we can say that there is a good scope for new entrants.
Plant capacity: 1140 Cubic Meter/day.Plant & machinery: 60 Lakhs
Working capital: -T.C.I: 130 Lakhs
Return: 35.00%Break even: 55.00%
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Oxygen Gas Lancing Pipes, Ceramic Coated Pipes, Oxygen Lancing Tube Used in Steel Plants, Furnace and Foundries

Manufacturing of steel tubes & pipes a Mechanical Engineering is mostly produced in large scale. ERW steel tubes are chiefly used in bicycles, transformers, L. P. Boilers, furniture industries etc. Till recently, seamless tubes and pipes constituted the largest single item of import for India. But new India makes a larger part of its requirements. Steel pipes are used in a variety of ways for innumerable applications from domestic to industrial field. Irrigation has become a potential user where pipes and tubes find an enormous use. In generators and oil or diesel/lubricating oil etc., as in ice factory these pipes are used to supply water. At present, the M.S. Pipe making capacity stands at 14.6 million tonnes of M.S. Pipe per year of which 11.4 million tonnes are accounted for by the integrated steel pipe plants and 3.6 million tonnes by mini steel pipe plants. The demand and consumption of conduit pipe is increasing every day. There is a good scope for new entrants.
Plant capacity: 3600 MT / AnnumPlant & machinery: 115 Lakhs
Working capital: -T.C.I: Cost of Project : 234 Lakhs
Return: 43.00%Break even: 57.00%
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COMPRESSED BIOGAS

The term biogases refer to gases created by the anaerobic fermentation of biological materials. Their main constituents are methane and carbon dioxide. Considerable quantities of biogases are produced by anaerobic fermentation of agricultural and organic waste (biogas), sludge digestion in the tanks of sewage treatment plants (sewage gas) and organic residues in garbage tips (land fill gas). Biogas can be utilized for electricity production, cooking, space heating and process heating. If compressed, it can replace compressed natural gas for use in vehicles, where it can fuel cell. Compressed bio-gas is becoming widely used in Sweden, Switzerland and Germany. A bio-gas powered train has been in service in Sweden. In India also compressed biogas is used in bus and car to save environment from pollution. The demand of compressed bio-gas is increasing very rapidly, so there is wide scope for new entrepreneurs to venture into this project.
Plant capacity: 1200 MT/AnnumPlant & machinery: 204 Lakhs
Working capital: -T.C.I: Cost of Project : 447 Lakhs
Return: 43.00%Break even: 33.00%
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Oxygen and Nitrogen Gas Plant

Oxygen and nitrogen are the most important industrial gases finding its application in large quantities in metal fabrication and cutting industries. It is used in electric arc steel furnaces for decarbonisation and scrap matting. Oxygen is also used in medical treatment and for breathing at high altitude flying. Some quantities of liquid oxygen are used in explosives, chemicals and petrochemicals industries as an oxidizing and catalytic agent. As the quantity of oxygen required in integrated steel plants is huge, the excess of oxygen is compressed and bottled in steel cylinders and supplied to engineering industries such as manufacture of machine tools, industrial machinery, automobiles and component manufacturers, fabricators of chemical plants, storage tanks, and furniture and building elements. Nitrogen gas is used in the production of ammonia which in turn is used for the manufacture of urea and ammonium phosphate, which are fertilizers of great use. Nitrogen gas is used for blanketing hazardous chemicals which is an inert atmosphere. Nitrogen gas is used for purging purposes. Nitrogen gas is used for the purification of other gases with extremely low boiling points, such as hydrogen scrubbing. High purity nitrogen is used in strip steel annealing prior to tin plating. Human blood and cattle sperm cells are pressured by using nitrogen liquid freezing method. Large quantities of liquid nitrogen are employed in the preservation of food by rapid freezing. Liquid nitrogen is also used to maintain low temperatures during the transportation of frozen food. The demand of oxygen and nitrogen gas will increase in future, so new entrepreneurs may venture into this project
Plant capacity: 1200 Cubic Meter/DayPlant & machinery: 21 Lakhs
Working capital: -T.C.I: 68 Lakhs
Return: 40.00%Break even: 52.00%
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Hydrogen Gas from Methanol Cracking

Hydrogen gas was first artificially produced in the early 16th century, via the mixing of metals with strong acids. In 1766-81, Henry Cavendish was the first to recognize that hydrogen gas was discrete substance, and that it produces water when burned, a property which later gave it its name, which in greek means water farmer. At standard temperature and pressure, hydrogen is a colorless, odorless, nonmetallic, tasteless, non-toxic, highly combustible diatomic gas with the molecular formula Hz. Hydrogen is a concern in metallurgy as it can embrittle many metals, complicating the design of pipelines and storage tank. Hydrogen is found in the atmosphere at trace levels. It is synthesized from hydrocarbon and from water where it constitutes the lightest. Fraction of the H2o molecular Hydrogen gas cannot sustain life. Hydrogen is widely used for the hydrogenation of vegetables and animal oil and fats. Hydrogen also finds uses in the metallurgy field because of its ability to reduce metal oxides and prevent oxidation of metals in heat treating certain metals and alloys. Hydrogen is extensively used in the synthesis of ammonia and in petroleum refining operations. Liquefied hydrogen has been used primarily as a Rockets and Space Vehicle. The hydrogen atom has a nucleus consisting of a proton bearing one unit of positive electrical charge, an electron, bearing one unit of negative electrical charge, is associated with the nucleus. There is a good market potential in such products and new entrepreneurs can venture in to this project. Few Indian Major Players are as under: Andhra Sugars Ltd. Durgapur Chemicals Ltd. Gujarat Alkalies & Chemicals Ltd. Lords Chloro Alkali Ltd. Meghmani Finechem Ltd. Modi Industries Ltd. Punjab Alkalies & Chemicals Ltd. Sandvik Asia Pvt. Ltd. Sree Rayalaseema Hi-Strength Hypo Ltd.
Plant capacity: 120000 Nos. Cylinder/Annum 6m3, 80000 Nos. Cylinder/Annum 9m3Plant & machinery: 707 Lakhs
Working capital: -T.C.I: Cost of Project : 1202 Lakhs
Return: 45.00%Break even: 44.00%
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