According to the U.S. Energy Information Administration (EIA) 2023 statistics, the U.S. retail sector for one bottle of regular acetylene gas (40L cylinder) filling price range between 15−25, out of which about 35% of the raw material purchasing cost, 28% equipment depreciation and maintenance. China Industrial Gas Association statistics show that the domestic batch purchase price of acetylene gas (above 100 cubic meters) is ¥15-¥30/ cubic meter, the East China price is as low as ¥12/ cubic meter due to concentrated production capacity, and the southwest area is as high as ¥28/ cubic meter due to high transportation costs.
The transportation connection occupies 18%-25% of overall cost, the loss ratio of liquefied acetylene tank truck transportation is about 3%-5%, and the loss ratio of gaseous transportation is 8%-12% due to complex pressure control. One Yangtze River Delta logistics company estimates that energy consumption in transport can be lowered by 40% through the use of low-temperature compression technology, though the investment in equipment must be recouped over five years. For safety compliance costs, the United States OSHA requires a hydraulic test every five years of the gas cylinder (the expense being approximately $80/bottle), and the China Special Equipment Testing and Research Institute data reveal that the compliance adjustment increases the cost to small and medium-sized businesses by ¥50,000 to ¥150,000 each year.
Inventory turnover cycle of storage facilities impacts the cost directly. The single purchase price of more than 200L mobile gas storage tank is around 32,000 yuan, its useful life can last up to 10 years, and the depreciation cost per year would be 3,200 yuan. When a car manufacturer installed an intelligent monitoring system (including leak alarm and temperature control modules), the unexpected downtime loss was reduced by 67%, but the upfront cost was 23% of the total equipment value.
Market fluctuations also contribute significantly to the cost, and the 2022 record global propane price has led to an increase in the cost of acetylene production by 38%, and the factory price of the Middle East acetylene plant previously surpassed ¥50/ cubic meter. Based on by-product recovery technology, a chemical manufacturer enhanced acetylene purity from 92% to 99.5%, by-product methane recycling to achieve an annual revenue of ¥8 million.
Environmental regulations also raise disposal costs, with the EU’s Carbon Border Adjustment Mechanism (CBAM) levying 12%-18% higher tariffs on imported acetylene. Chinese Ministry of Ecology and Environment statistics show that exhaust gas treatment equipment-free acetylene charging station operating costs comprise 15%-22% as VOCs emission control costs. After a new energy company’s transition to plasma purification technology, carbon emissions were reduced by 76%, though the cost of equipment conversion was ¥2 million.
Industry examples show that distribution can be greatly reduced through the centralized form. Logistics cost reduces by 22% and by 19% energy consumption per unit filled when the Lincoln Electric Company had installed a regional center of gas supplies. A sample of a province industrial gas center in China reduced 11% of the terminal price after they reduced the extent of middleman by the use of blockchain tracing system, and the cost of investment in developing the system is 3% of each year’s revenues.
Finally, the insurance cost for acetylene gas refill stations has been increasing every year, and the global average premium in 2023 has increased by 47% compared to that in 2018. When a multinational company introduced an AI-powered risk assessment system, the fire insurance premium decreased from ¥18,000 / year to ¥11,000 / year, but the expense of operating the system took up 28% of the premium expense. The results show that the leakage rate can be maintained below 0.05% by using the nano-coated gas storage cylinders, but an increase in the material cost causes an increase in the ¥500 per bottle purchasing price.