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How On-Site Gas Generation is Empowering Industrial Resilience in India

Introduction

In today’s volatile industrial landscape, resilience has become the new benchmark for success. Indian industries face challenges ranging from supply chain disruptions and fluctuating gas prices to growing sustainability mandates. Amid this uncertainty, on-site gas generation systems are emerging as a reliable, cost-effective, and sustainable solution.

By producing critical gases like oxygen, nitrogen, and hydrogen directly at the facility, companies can reduce dependence on external suppliers, lower operational costs, and ensure uninterrupted production. For India’s push towards self-reliance (Atmanirbhar Bharat) and net-zero commitments, on-site generation technologies are proving indispensable.

What is On-Site Gas Generation?

On-site gas generation refers to the use of specialized equipment—such as PSA (Pressure Swing Adsorption) plants, membrane separators, and electrolysers—to generate industrial gases within the factory premises.

Key Gases Produced On-Site:

  • Nitrogen (N₂): Used for food packaging, electronics manufacturing, and inerting in chemical industries.

  • Oxygen (O₂): Critical for steelmaking, healthcare, and wastewater treatment.

  • Hydrogen (H₂): Driving clean energy applications and refining processes.

Why Indian Industries are Shifting to On-Site Gas Generation

  1.  Resilience Against Supply Chain Disruptions

    No dependency on cylinder deliveries or cryogenic tankers.
    Reliable gas availability even during transport strikes, fuel shortages, or global price hikes.

  2. Cost Efficiency
    Eliminates recurring cylinder rental and logistics costs.
    Long-term savings from producing gases at lower cost per unit.

  3. Sustainability & Net-Zero Goals
    On-site hydrogen and oxygen production reduce carbon footprint linked with gas transportation.
    Integrates with renewable energy sources like solar and wind for low-carbon operations.

  4. Regulatory Compliance
    Meets Indian emission norms and safety standards under PESO and CPCB guidelines.
    Enables industries to align with ESG reporting and carbon credit mechanisms.

    Key Industries Benefiting from On-Site Gas Generation

    1. Steel & Metals
      On-site oxygen plants improve furnace efficiency and reduce energy costs.

    2. Food & Beverage
      Nitrogen generators ensure safe food packaging and extend shelf life.

    3. Pharmaceuticals & Healthcare
      On-site oxygen ensures continuous supply for hospitals and pharma manufacturing.

    4. Chemicals & Petrochemicals
      Nitrogen inerting reduces explosion risks and enhances process safety.

    5. Clean Energy Sector
      Hydrogen generation on-site supports India’s Green Hydrogen Mission and industrial decarbonization.

    Challenges in On-Site Gas Generation

    While the benefits are clear, industries face challenges that need addressing:

    • High Initial CAPEX: Equipment and installation costs can be significant for SMEs.

    • Technical Expertise: Skilled personnel required for operation and maintenance.

    • Purity Demands: Certain industries require ultra-high-purity gases, which demand advanced systems..

    • Power Dependency: Systems rely on continuous electricity—making renewable integration critical

    Emerging Trends Driving On-Site Gas Adoption in India

    • Hybrid Energy Models: On-site generators powered by renewable energy for greener production.

    • Digital Monitoring: IoT-enabled systems for real-time performance tracking and predictive maintenance.

    • Modular Solutions: Scalable PSA and membrane-based generators catering to both SMEs and large industries.

    • Hydrogen Electrolysers: Growing investments in on-site green hydrogen plants for refineries and mobility.

    India’s Push Towards Industrial Self-Reliance

    The Indian government is actively promoting on-site generation as part of its Atmanirbhar Bharat and Net-Zero 2070 commitments:

    • National Green Hydrogen Mission: ₹19,744 crore investment to accelerate hydrogen adoption.

    • CPCB Regulations: Mandating reliable emission monitoring, supported by oxygen and calibration gases.

    • State Industrial Policies: Incentives for industries investing in energy-efficient gas generation systems.

    Conclusion: On-Site Gas Generation as India’s Industrial Backbone

    As India strives for sustainable growth and industrial resilience, on-site gas generation is emerging as a strategic enabler. By reducing costs, ensuring self-sufficiency, and supporting net-zero commitments, these systems are transforming industries across steel, food, pharma, and energy.

    For Indian industries, the message is clear: the future of industrial resilience lies in controlling your own energy and gas supply.

    References

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