Is it possible? I know that you can get rid of it, but that creates a void/carbon dioxide. My base is running out of oxygen extremely quickly, and algae is not particularly abundant in my area. So, is there any way to turn it directly into oxygen?
You can turn contaminated oxygen into regular oxygen by using an air deodorizer. It's not a 1:1 conversion, though. It outputs less clean oxygen than the amount of contaminated oxygen it takes in. The wiki page for the air deodorizer states that it "converts about 1/2 to 1/3 of the contaminated oxygen into clean oxygen," and adds that the rest is just deleted. It also uses sand for this process, which is a non-renewable resource.
Duplicants can actually breathe contaminated oxygen (for now). Given that sand is a precious resource, it might be even be necessary for your duplicants.
The game is in very early alpha at the moment, though, so the ability of duplicants to breathe contaminated oxygen without any (real) downside could possibly change, and the usefulness of the air deodorizer could also change.