As global logistics and energy markets become more volatile, oxygen equipment supplier O2Africa offers locally manufactured, on-site gas generation systems that enable steel manufacturers to have direct control over oxygen or nitrogen supply.

Oxygen plays a critical role in processes such as steel cutting using acetylene or liquefied petroleum gas and combustion enhancement, while nitrogen is used for purging, blanketing and inerting, explains O2Africa commercial director David Kempe.

These gases are essential for quality, safety and efficiency, but disruptions or price hikes in gas supply directly impact on production continuity and cost per kilogram, he notes.

Oxygen and nitrogen prices from third-party suppliers often fluctuate, as they are influenced by transport, fuel and production costs. These third-party gas supply models, therefore, often come with additional costs such as delivery, and cylinder and bulk tank rental.

Over time, these inflate operational expenses, as well as expose clients to delays, minimum order quantities and unplanned outages.

Kempe adds that “these businesses have become so big and bulky that they tend to lack attention to detail and are not listening to their clients’ frustrations. Many steel businesses operate around the clock and even short interruptions can cause major downtime.”

He highlights that there is frustration regarding the lack of transparency in gas consumption and high monthly rental costs that add no operational value.

As such, the installation of on-site gas generation can protect steel manufacturers from pricing shocks that are tied to international markets and are “out of their control”.

Reducing Dependency

“Over the last two years, we have seen a noticeable shift in mindset. More steel producers are prioritising supply chain control. The volatility in fuel, delivery and cylinder/bulk rental costs has made the case for on-site generation more urgent,” Kempe points out.

As such, O2Africa’s pressure swing adsorption (PSA) solutions are aimed at eliminating the dependency on third-party schedules and improving operational resilience.

Owing to these systems’ being designed and built in South Africa, and the company’s prioritising local skills and suppliers wherever possible, the systems support the broader goals of localisation, industrial resilience and inclusive growth, Kempe explains.

This also empowers steel businesses to make long-term investments in process reliability and workforce development.

Despite assumptions that PSA systems are complex or labour intensive, O2Africa has designed its systems to be fully automated and user friendly for industrial environments, with “intuitive” interfaces and fewer maintenance requirements.

Moreover, the PSA systems reduce the carbon footprint of gas consumption by eliminating diesel-based deliveries and long-haul transport emissions.

Further, O2Africa promotes efficient gas use by generating only what is needed, consequently reducing waste and consumption. Kempe notes that these systems help to reduce gas procurement costs, adding that many clients save up to 80% in costs, compared with those of traditional models.

Meanwhile, for companies that do not have the capital expenditure or the support of debt facilities to finance the procurement of a plant, O2Africa offers leases or lease-to-buy models that are supported by its funders.

Kempe stresses that this provision still enables O2Africa’s clients to reduce their operating expenses, as the company will continue to maintain the asset, in addition to providing clients with comprehensive training and remote diagnostics to ensure smooth operation.