How to Meet the Rising Demand for Medical Oxygen

Sudhakar Singh, Editor

Earlier this week, the central government decided to import 50,000 metric tonnes (MT) of Medical Oxygen to meet the rising demand in the hospitals. The Ministry of External Affairs (MEA) has been asked to identify the countries from where medical oxygen can be imported. The move comes on the heels of the sweeping second wave of Covid-19 that has created an immense demand for medical oxygen. With the vaccination status in the country still standing at a mere 0.02 per cent as of today, considering the fact that 3.06 crore people have received the first dose of vaccine, the need to ramp up oxygen production has become imperative.

“In view of increasing demand for medical oxygen, the Government has decided to float a tender for import of 50,000 MT of medical oxygen. MOHFW has been directed to finalize the tender for the same and also explore possible sources for import identified by the missions of MEA,” the Ministry of Health and Family Welfare (MOHFW) said in a statement.

Current Production Capability
According to the government officials, approximate projections of medical oxygen demand has been shared with states for the end of April and 12 most affected states have been allocated close to 4,880 MT, 5,619 MT and 6,593 MT of medical oxygen. As the country scrambles to fulfill the demand for medical oxygen through both imports and local production, let us have a look at the current medical oxygen and other industrial gas production capability of India.

Both in manufacturing as well as healthcare, gases find their usage in various applications which have been driving the growth of industrial and medical gases industry. Industrial gases are used in several manufacturing segments for which oxygen, nitrogen and argon are being produced in large quantities. Oxygen is primarily used in steel industry for cutting and welding as well as for treating polluted water and hazardous wastes and also for the gasification process of coal. Acetylene, propane, and mixture of fuel gases are used in shipyards and the automotive industry. Liquid nitrogen on the other hand is used in recycling plastics, packaging, and scrap tyres. Then there is chemical industry which uses almost all industrial gases either as a raw material or for the purpose of inerting.

Evident Shift in Demand
When it comes to production of industrial gases, currently, there are more than 300 small and medium size plants and over 25 large plants across the country. Gases produced at these facilities are supplied to nearby factories through pipelines, cryogenic transport tanks or cylinders.

The existing annual turnover of the industry amounts to around Rs 3000 crore if we exclude the captive production. In terms of demand, a major shift is apparent wherein the some new industries are overtaking the conventional ones. These industries are food processing, agriculture and healthcare. As new demand sectors emerge, the production is under higher pressure to improve quality as well as strengthen the supply chain.

The current situation has made the industry rethink its production processes to achieve a complete efficiency turnaround. But the question is how it can be done in a way that it fulfills the existing unprecedented demand, which may not be case in the foreseeable future, and then justify the boosted infrastructure in terms of revenue long after the pandemic is over. Working towards a steadily increasing demand is one thing when the long term approach can be contemplated, but when it is about an ephemeral outlook, the RoI becomes a concern restraining the endeavor.

Boosting the Country’s Capacity
According to experts, the total amount of oxygen that India can produce is 7000 metric tonnes. To increase the production last year, the small manufacturers producing industrial oxygen were told to produce medical oxygen. They were able to do so by changing certain specifics. This has gone a long way in boosting the country’s capacity to produce medical oxygen.

By using pressure swing adsorption method, oxygen can be generated and the hospital can fulfill its oxygen demand on its own.

Sudhakar Singh, Editor

Liquid oxygen with 99.5 per cent purity is being prepared by manufacturers. It is then stored in jumbo tankers and transported to distributors in cryogenic tankers. At the distributor’s facility, it is converted into gaseous form and filled in jumbo and dura cylinders which are then supplied directly to hospitals. The major challenge faced currently is lack of cylinders and tankers to store and transport oxygen. So, even as the production capability of manufacturers is being escalated, the supply chain is yet to catch up due to lack of storage and transport equipment. This will now create a demand for manufacturing of cryogenic tankers and jumbo cylinders. As for the transportation, the government is considering using railways where “oxygen expresses” will be used in conjunction with road transport to enable streamlined movement.

Achieving Self-sufficiency
Industry experts believe that setting up oxygen plants and having the necessary equipment for supply in the desired number is going to take time. One of the alternatives that can prove to be an enabler of self-sustenance of hospitals is by making them capable of generating their own medical oxygen. In the current scenario, the hospitals buy oxygen in bulk in liquid and gaseous form. These can increase the cost incurred by hospitals for oxygen supply by a great amount. For self-sustenance, the hospitals can generate medical oxygen on-site in their premises and in a very cost effective way. By using pressure swing adsorption method, oxygen can be generated and the hospital can fulfill its oxygen demand on its own. Acknowledging the benefits of this method, the government has sanctioned the installation of 162 pressure swing adsorption (PSA) plants in public hospitals across states.

Steps like these are the way forward in current times to meet the immediate need for medical oxygen. While it fulfills the rising demand, the industrial capability can be worked upon to enhance the infrastructure capability and strengthen the overall oxygen production. In this way, the supply can be aligned with the fluctuating demand.