Melt for Less: A 3-Year ROI Breakdown of the Stage 2 Oxygen System

For operations that rely on a consistent oxygen supply—whether in art studio’s, industrial labs, or aquaculture farms—the ongoing cost of compressed oxygen tanks can be a significant, and often overlooked, operational drain. The Stage 2 oxygen system offers an alternative: a self-contained, on-site solution that eliminates rental fees, delivery schedules, and hazmat surcharges.

But how does the investment stack up financially?

Let’s break it down.

First Scenario: High Volume Operation

The Conventional Approach: Compressed Oxygen Tanks

If you’re consuming about three K-size oxygen cylinders per week—each holding around 250 cubic feet—your annual oxygen usage is about:

3 tanks/week × 52 weeks × 250 cu ft = 39,000 cu ft/year

With current cylinder prices hitting $75 per tank, plus $40/week in delivery, rental, and hazmat fees, your annual cost looks like this:

Tanks: 3 × $75 × 52 weeks = $11,700
Fees: $40 × 52 weeks = $2,080
Total: $13,780 per year

That’s approximately $1,148/month.

The Stage 2 PRO: Cost to Own and Operate

The Stage 2 PRO 60-300 is engineered for high volume usage, capable of delivering up to 110 PSI via six 10 LPM concentrators, paired with an 300 litre (80 gallon) storage tank.

Cost Breakdown:

Upfront full system cost: $12,550
Energy use: ~$5/day × 20 workdays/month = $100/month
Maintenance: $120 every 6 months for filter replacements = $20/month
Total Ongoing Monthly Costs: $120/month
Financed Purchase (over 36 months): $12,550 ÷ 36 = $348.61/month

Total monthly expense: $348.61 + $120 = $468.61

ROI Calculation: Baseline Example

Monthly Savings:

$1,148.33 (tanks) – $468.61 (Stage 2 PRO) = $679.72/month saved

Payback Period:

$12,550 ÷ $679.72 ≈ 18.46 months

Net Savings Over 3 Years:

$679.72 × 36 months = $24,469.92

Subtract equipment cost: $24,469.92 – $12,550 = $11,919.92 net savings

Alternative Scenario: Lower Volume Operation

Let’s say you only use one K tank per week (250 cf), not three. Here’s how the math changes:

Annual usage: 250 × 52 = 13,000 cu ft
Tanks: 1 × $75 × 52 = $3,900
Fees: $40 × 52 = $2,080
Total: $5980/year or $498.33/month

The Stage 2 SOLO: Cost to Own and Operate

The Stage 2 SOLO 10-114 is engineered for lower volume usage, capable of delivering up to 110 PSI via one 10 LPM concentrator, paired with a 114 litre (30 gallon) storage tank.

Cost Breakdown:

Upfront full system cost: $4,350
Energy use: ~$0.25/day × 20 workdays/month = $5/month
Maintenance: $20 every 6 months for filter replacement = ~$4/month
Total Ongoing Monthly Costs: $9/month
Financed Purchase (over 36 months): $4350 ÷ 36 = $120.83/month

Total monthly expense: $120.83 + $9 = $129.83

ROI Calculation: Lower Volume Example

Monthly Savings:

$498.33 (tanks) – $129.83 (Stage 2 SOLO) = $368.5/month saved

Payback Period:

$4350 ÷ $368.5 ≈ 11.8 months

Net Savings Over 3 Years:

$368.5 × 36 months = $13,266

Subtract equipment cost: $13,266 – $4350 = $8,916 net savings

If you don’t know how much oxygen you require click here!

Beyond the Numbers: Operational Efficiency

In both usage scenarios, the Stage 2 pays for itself in under 18 months, with a 36 month ROI of up to 200%. And that’s without even accounting for:

Delivery delays or logistics mishaps
Storage space for cylinders
Safety compliance around compressed gas handling
Price volatility in cylinder refills

Conclusion: A Better Way to Burn

Switching to the Stage 2 oxygen system isn’t just a cost-saving decision—it’s a long-term operational upgrade. With returns starting in the first 12-18 months and savings exceeding $10,000+ over three years (depending on your usage and system), the Stage 2 is more than a piece of equipment—it’s a profit center.

Oxygen Cost Comparison in $CAD

$CAD in Litres	Tanked Oxygen($70 K-Tank)	Liquid Oxygen($200 Dewar)	Stage 2 System
Per Litre (l)	$0.01	$0.0015	$0.00017
Per K tank (7080l)	$70.00	$10.75	$1.20
Per 8 hours @ ~ 7 lpm(Nortel Minor, GTT Lynx, Carlisle Mini CC)	$33.60	$5.16	$0.58
Per 8 hours @ ~ 40 lpm (Nortel Redmax, GTT Mirage, Carlisle CC)	$179.20	$27.50	$3.07

$CAD in SCF	Tanked Oxygen($70 K-Tank)	Liquid Oxygen($200 Dewar)	Stage 2 System
Per Standard Cubic Foot (scf)	$0.28	$0.043	$0.0048
Per K tank (250 scf)	$70.00	$10.75	$1.20
Per 8 hours @ ~15 CFH (Nortel Minor, GTT Lynx, Carlisle Mini CC)	$33.60	$5.16	$0.58
Per 8 hours @ ~80 CFH(Nortel Redmax, GTT Mirage, Carlisle CC)	$179.20	$27.50	$3.07

Oxygen Cost Comparison in $USD

$USD in SCF	Tanked Oxygen($50K-Tank)	Liquid Oxygen($145 Dewar)	Stage 2 System
Per Standard Cubic Foot (scf)	$0.20	$0.03	$0.0035
Per K tank (250 scf)	$50.00	$7.75	$0.87
Per 8 hours @ ~15 CFH (Nortel Minor, GTT Lynx, Carlisle Mini CC)	$24.25	$3.72	$0.42
Per 8 hours @ ~80 CFH(Nortel Redmax, GTT Mirage, Carlisle CC)	$129.20	$19.83	$2.21

Why rent your oxygen when you can generate your own—and keep the savings?

Compressed tanked oxygen can be as much as 50 times more expensive per cubic foot compared to PSA-generated oxygen. Even liquid oxygen, while more affordable than cylinders, still costs nearly 10 times more per cubic foot than oxygen produced by a Stage 2 System.