What if there was a way to eliminate recurring nitrogen supply expenses while enhancing efficiency? Delivered nitrogen is costly over time, while onsite nitrogen generation offers a one-time investment that pays off within 12–24 months, providing substantial long-term savings.
This blog will uncover the financial and operational advantages of transitioning to onsite nitrogen production, break down how it works, and illustrate why it’s the future of industrial nitrogen supply.
Why Delivered Nitrogen Is Costing You More
Reliance on delivered nitrogen services often comes with layers of costs—many of which are not immediately apparent but become clear over time.
- Transportation Charges: Industrial gas delivery doesn’t come free. Each shipment incurs delivery fees, which can vary based on distance and frequency. These costs add up quickly, particularly for facilities located far from distribution hubs.
- Cylinder – Tank Rentals: Most suppliers charge recurring fees to rent nitrogen cylinders or bulk liquid nitrogen tanks. Depending on your usage, this “rental” can cost thousands annually, yet the cylinders don’t even belong to you in the long run.
- Wastage and Inefficiencies: Delivered nitrogen often results in wastage due to factors such as off-gassing, where liquid nitrogen evaporates into gaseous nitrogen and escapes from the tank. Furthermore, production downtime can occur if cylinders are not replaced in time, leading to lost revenue.
The Case for Onsite Nitrogen Generation
The solution to these challenges lies in transitioning to onsite nitrogen generators. Onsite nitrogen generation lets you produce nitrogen gas on-demand directly at your facility by installing a nitrogen generator that extracts nitrogen from the air around you. Here’s how it works:
- Air Compression: Ambient air is compressed and filtered to remove contaminants.
- Nitrogen Separation: Using advanced technology, oxygen in ambient air is separated from nitrogen, leaving behind high-purity nitrogen gas for process use.
- Storage and Use: The generated nitrogen can be stored or used immediately.
After the initial investment, the only ongoing costs are for maintenance and electricity, both of which are predictable and manageable and a fraction of the cost of conventional nitrogen supply. The reduced reliance on external suppliers ensures stable supply and long-term savings.
Some of the key benefits of onsite nitrogen generation include:
- Drastic Cost Reduction: By eliminating recurring delivery, rental, and hidden fees, businesses can achieve up to 90% savings on nitrogen costs compared to conventional nitrogen supply methods.
- Consistent Supply: No more worrying about delayed deliveries or running out of nitrogen mid-production. Onsite systems ensure your supply is always reliable and unlimited.
- Enhanced Control: Onsite nitrogen generators allow you to customize nitrogen purity levels, tailoring the output to meet your specific industry and application requirements.
- Environmental Benefits: Generating nitrogen onsite eliminates the need for transportation, reducing carbon emissions and creating a greener operation.
ROI: How Onsite Nitrogen Generators Pay for Themselves
Switching to an onsite nitrogen generator is an investment, but it’s one with a strong return. Here’s an example cost comparison:
Annual Cost of Delivered Nitrogen
At a rate of $0.80 per hundred cubic feet (CCF), delivered nitrogen for a medium-sized facility that uses roughly 3,000 CCF per month can cost up to $29,000 annually. That’s accounting for delivery fees, tank rentals, and wasted nitrogen.
Annual Cost of Onsite Nitrogen Generation
For the same nitrogen usage, an onsite generator costs approximately $2,800 annually (including energy at $0.10 per kWh and yearly maintenance fees of $600).
Thanks to this drastic reduction in annual expenses, most businesses achieve a full return on investment (ROI) within 12–24 months. After that, your business continues to save tens of thousands of dollars every year.
Operational Savings Beyond Direct Costs
No more managing supplier contracts, delivery schedules, or surprise fees. With onsite nitrogen, procurement processes are significantly streamlined.
Onsite generation eliminates delivery delays, ensuring your operations run uninterrupted.
Industries That Benefit from Onsite Nitrogen
Onsite nitrogen generation is transforming industries by providing a reliable, cost-effective supply of nitrogen. Here are several industries leveraging this technology:
Food and Beverage Industry
- Packaging: Nitrogen is used to displace oxygen in packaging to preserve freshness and extend shelf life.
- Beverage Production: Used in carbonation, purging, and storage to maintain product quality.
Metal Fabrication
- Laser Cutting: Ensures smooth cuts with a consistent and high-purity nitrogen supply.
- Welding and Brazing: Prevents oxidation and improves joint quality during welding processes.
Oil and Gas
- Pipeline Purging: Removes oxygen and moisture from pipelines during maintenance.
- Enhanced Oil Recovery: Used in pressurization for efficient resource extraction.
Electronics Manufacturing
- Soldering and PCB Production: Nitrogen reduces oxidation during soldering, enhancing product quality and reliability.
- Semiconductor Manufacturing: High-purity nitrogen is critical for creating defect-free components.
Pharmaceuticals
- Packaging: Maintains sterility and extends the shelf life of pharmaceutical products.
- Drug Production: Used in processes requiring an inert atmosphere to ensure product safety.
Automotive Industry
- Tire Inflation: Nitrogen is used to maintain consistent tire pressure, enhancing safety and fuel efficiency.
- Airbag Manufacturing: Creates the controlled environments needed for safe airbag production.
Chemical Processing
- Inerting and Blanketing: Prevents explosions and contamination during the storage and transport of chemicals.
- Process Cooling: Used in cryogenic cooling applications for temperature-sensitive materials.
Aerospace and Aviation
- Aircraft Fuel Tank Inerting: Reduces the risk of explosion by displacing oxygen.
- Aircraft Tire Inflation: Prevents the risk of explosive decompression if aircraft tires fail during take-off and
- Component Testing: Nitrogen provides controlled conditions for testing critical aerospace parts.
Renewable Energy
- Wind Turbine Maintenance: Nitrogen is used for purging and pressurizing turbine components.
- Battery Manufacturing: Maintains inert conditions for the production of lithium-ion batteries.
Glass and Plastics Manufacturing
- Glass Production: Prevents oxidation and enhances quality during glass moulding.
- Plastic Extrusion: Used in injection molding and extrusion processes to create consistent products.
Medical and Healthcare
- Cryopreservation: Provides the ultra-low temperatures needed for preserving biological samples.
- Sterilization: Supports sterile packaging and equipment maintenance.
Textiles and Printing
- Dyeing and Finishing: Improves dye consistency and reduces chemical reactivity.
- Printing Applications: Used for inerting in printing processes, especially in flexographic printing.
Transitioning to Onsite Nitrogen: A Simple Process
- Assess Your Needs: Evaluate current nitrogen usage and expenses.
- Choose the Right Generator: Select a model based on your nitrogen purity and volume requirements.
- Plan Installation: Collaborate with AGT’s experts for seamless setup.
- Start Saving: Immediately reduce nitrogen costs while enjoying an uninterrupted supply.
Why Choose Advanced Gas Technologies?
Advanced Gas Technologies (AGT) has over 30 years of experience providing industry-leading nitrogen solutions. Here’s why businesses worldwide trust AGT:
- Expertise: AGT’s team of specialists ensures the right nitrogen system for your needs.
- Cost-Effective Nitrogen Solutions: From consultation to installation, we focus on delivering measurable savings.
- Sustainability: We prioritize eco-friendly, energy-efficient solutions that reduce environmental impact.
Stop Wasting Money – Make the Switch Today!
Transitioning to onsite nitrogen generation is more than a financial decision—it’s a strategic investment in the future of your business. By eliminating hidden costs, minimizing waste, and gaining control over your nitrogen supply, your operations will run more efficiently while improving profitability.
Contact AGT today to learn how your business can benefit from onsite nitrogen.