SIC 2813 Industrial Gases
SIC 2813
This industry classification contains establishments primarily involved in manufacturing industrial gases (organic as well as inorganic) that may be sold in compressed, liquid, or solid form. Industrial gases include acetylene, argon, carbon dioxide, helium, hydrogen, neon, nitrogen, nitrous oxide, and oxygen. Fluorocarbon gases are covered under SIC 2869: Industrial Organic Chemicals, Not Elsewhere Classified. Industrial gas distributors, including liquid oxygen shippers, are classified in SIC 5169: Chemicals and Allied Products, Not Elsewhere Classified.
325120
Industrial Gas Manufacturing
In the United States, industrial gases touch virtually every facet of life. The three major atmospheric gases—oxygen, nitrogen, and argon—are used in steel production. Oxygen enhances kiln firing to reduce brick-making costs. Liquid oxygen and liquid hydrogen fuel rockets. Nitrogen is used in brewing beer, recycling tires, and applying metallic finishes on toys. Ammonia is synthesized from nitrogen for use in fertilizers, nitric acid, hydrazine, amines, and urea. It is also important in the production of nitrous oxide (also known as laughing gas) that is used as an anesthetic in some types of surgery. Liquid nitrogen and liquid carbon dioxide are used to make plastic fittings for moldings, enhance oil recovery from wells, and enable solvent recycling. Argon contributes to stainless steel manufacturing and serves as a component in fluorescent lighting.
According to the U.S. Census Bureau, the industrial gases industry shipped products valued at nearly $7.3 billion in 2005, as compared to $6.9 billion in 2004 and $5.4 billion in 2000. Growth is expected to continue for manufacturers worldwide, as new global markets open and certain market sectors, namely petroleum, healthcare, and electronics, drive demand.
The industrial gas industry differs from many other types of manufacturing because its raw materials are primarily extracted from the atmosphere. The two principal gases produced by the industry are nitrogen and oxygen. Dry air is composed of 78.1 percent nitrogen, 20.9 percent oxygen, and just under 1 percent argon. All other atmospheric gases, often called rare gases, make up the remaining one-tenth of 1 percent. Additional industrial gases such as hydrogen, acetylene, and carbon dioxide are obtained as co-products or by-products of other operations. Production costs within the industry are divided among labor, energy, and distribution.
The industry uses three different techniques to separate gases from the atmosphere. Cryogenic methods are the oldest and most widely used. Cryogenic separation relies on cooling and pressurizing the air until it becomes liquid. Oxygen, when held at a pressure of 80 pounds per square inch, liquefies at minus 274 degrees Fahrenheit; nitrogen liquefies at a colder temperature. As the atmospheric gases liquefy, they are extracted by means of a distillation process. Additional distillation steps are necessary to produce argon and other rare gases such as krypton and xenon. Helium liquefies only at temperatures approaching absolute zero. As a result, cryogenic production is not economically feasible for helium. Most commercially available helium is derived from natural gas rather than from the atmosphere.
Two non-cryogenic gas production methods are membrane separation and pressure swing absorption (PSA). Membrane separation uses hollow fibers, most frequently made of organic polymers, to recover gases such as hydrogen from oil refineries or carbon dioxide from natural gas supplies. Pressure swing absorption (PSA) relies on a molecular sieve material that selectively absorbs atmospheric components at specific temperatures and pressures.
The industrial gas industry is divided into two major segments. The first, called the "tonnage" or "supply scheme" market, is composed of large-volume users who usually receive gas via a direct pipeline from an on-site production facility. Under typical on-site contracts, a gas supplier constructs a production plant at or adjacent to a gas user's facility. The gas supplier owns and operates the plant for the benefit of the gas customer. Long-term contracts dictate that the customer take a specified volume of gas, often the entire amount produced. Many contracts contain adjustment clauses to account for increasing energy prices, variances in productivity, or changes in labor costs. Within this market segment, gas sold is measured in terms of tons per day. Examples of customers who routinely purchase industrial gases on...
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