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Aquaculture in Iceland: Unlocking Growth with Affordable, Self-Generated Oxygen

Due to its pristine waters and ideal farming conditions, Iceland's aquaculture industry is experiencing rapid growth. However, one key challenge continues to slow the pace of expansion: the high cost of oxygen. In aquaculture, oxygen is critical for ensuring healthy fish growth, particularly in high-density systems with insufficient natural oxygen levels. Traditionally, fish farms in Iceland have relied on deliveries of liquid oxygen or compressed oxygen cylinders. While effective, these methods are expensive and can hinder long-term business growth. Fortunately, more cost-effective solutions, such as self-generated oxygen from pressure swing adsorption (PSA) generators, are now available.

The Role of Oxygen in Aquaculture

In modern aquaculture, maintaining optimal oxygen levels is vital for fish welfare and productivity. Fish rely on oxygen for respiration, and in intensive farming operations, oxygen depletion can lead to poor growth rates, increased stress, and higher mortality. To prevent this, farms often use high-purity oxygen to boost water oxygenation levels, improving overall fish health and feed conversion efficiency.

However, the traditional method of obtaining oxygen via deliveries of liquid oxygen or compressed oxygen cylinders is not only costly but also inefficient. These delivery-based systems lock fish farms into recurring expenses, with prices in Iceland averaging 50,000 ISK per ton of delivered oxygen. This ongoing cost can erode profit margins, especially for smaller farms looking to scale up operations.

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The Cost of Traditional Oxygen: A Barrier to Growth

Reliance on liquid oxygen deliveries has proven to be a significant burden for aquaculture businesses. The logistics involved in transporting and storing liquid oxygen drive up costs, while the farm is left vulnerable to potential supply chain disruptions. In an industry where precision and reliability are essential, unpredictable delivery schedules and fluctuating prices can put farms at risk. The costs of these deliveries accumulate quickly, making it harder for aquaculture businesses to remain competitive.

With delivered oxygen priced at around 50,000 ISK per ton, Icelandic fish farms face an uphill battle in keeping their operational costs manageable. To remain profitable, many businesses are seeking more affordable, sustainable alternatives that allow for oxygen on demand.

Self-Generated Oxygen: The Game-Changing Alternative

One of the most promising solutions for Iceland's aquaculture industry is self-generated oxygen via pressure swing adsorption (PSA) technology. Unlike traditional delivery methods, PSA generators produce high-purity oxygen directly on-site, eliminating the need for expensive deliveries of liquid oxygen or cylinders. This not only reduces costs but also ensures farms have a constant, reliable supply of oxygen.

PSA generators work by separating oxygen from nitrogen in the air, providing aquaculture operations with oxygen on demand. This is particularly beneficial for fish farms that need to maintain consistent oxygen levels without relying on external suppliers.

In addition to increased reliability, the cost savings are substantial. A basic cost comparison between traditional oxygen deliveries and self-generated oxygen illustrates the financial benefits.

To produce 1 kg of oxygen using a PSA generator, the system typically consumes about 0.8 kWh of electricity. In Iceland, where electricity costs are around 10 ISK per kWh, the cost of generating 1 kg of oxygen is:

0.8 kWh × 10 ISK/kWh = 8 ISK per kg of oxygen

This translates to 8,000 ISK per ton of self-generated oxygen—compared to 50,000 ISK per ton for delivered oxygen. That’s a significant 84% reduction in oxygen costs. With such savings, aquaculture businesses can recoup their initial investment in a PSA system in as little as two years, making it a highly attractive alternative to liquid oxygen deliveries.

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Further benefits of Pressure Swing Adsorption Systems

Beyond the direct cost savings, the switch to self-generated oxygen offers other advantages. With oxygen on demand, farms can avoid the logistical headaches of scheduling deliveries and storing bulky oxygen tanks. This allows for greater operational flexibility and more predictable oxygen availability, reducing the risk of oxygen shortages that could harm fish health and productivity.

By installing PSA systems, fish farms can also reduce their environmental impact. Unlike liquid oxygen deliveries, which involve transportation and associated emissions, self-generated oxygen is produced on-site using clean, renewable Icelandic electricity, aligning with Iceland’s national commitment to sustainability.

The investment in a PSA generator also protects businesses from market fluctuations in oxygen prices, providing long-term stability and improved financial forecasting. This gives aquaculture companies the freedom to focus on growth, without worrying about rising oxygen costs or supply chain delays.

Conclusion

For Iceland’s aquaculture industry to continue thriving, transitioning away from costly liquid oxygen deliveries to self-generated oxygen using pressure swing adsorption systems is the clear path forward. With high-purity oxygen produced at a fraction of the cost, farms can save up to 84% on oxygen expenses, improve operational reliability, and enhance sustainability efforts.

In a competitive industry where margins are often tight, embracing this liquid oxygen alternative allows fish farms to focus on what truly matters: scaling their operations, improving fish welfare, and achieving long-term success. By adopting PSA oxygen generators, Icelandic aquaculture can unlock new levels of profitability and secure its place as a leader in sustainable fish farming.

By making the switch, farms can enjoy the benefits of cheap oxygen without sacrificing quality or reliability, paving the way for a more sustainable, profitable future. 

Contact us today to find out how we can help you improve your operations today! 

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