Liquid nitrogen is essential for countless industrial processes, from chemical manufacturing to food packaging and electronics manufacturing. Many manufacturers rely on bulk liquid nitrogen deliveries to meet their needs. However, what appears to be a convenient solution often comes with hidden costs that can significantly impact your bottom line.
This blog examines the high cost of liquid nitrogen deliveries and introduces a smarter, more cost-effective solution—onsite nitrogen generation.
The True Cost of Liquid Nitrogen Deliveries
Relying on bulk liquid nitrogen delivery may seem straightforward, but the additional costs can quickly add up. From escalating delivery fees to losses caused by evaporation and supply chain disruptions, the true cost of bulk industrial nitrogen supply may be far higher than you expect.
Rising Costs of Bulk Nitrogen Supply
Let’s break down the average expenses:
- Delivery Fees: Bulk nitrogen suppliers charge for transportation, and surging fuel costs can quickly increase these fees. Additional handling fees may also apply, further inflating your expenses.
- Tank Rentals & Maintenance: Most businesses don’t own large cryogenic storage tanks and instead pay monthly rental fees. These tanks also require routine maintenance, adding to the overall cost.
- Fluctuating Prices: The price of liquid nitrogen is volatile, influenced by location, demand, and global market factors. Businesses often find themselves paying more than anticipated, leading to budgeting challenges. For instance, purchasing bulk nitrogen in the U.S. can cost between $0.12 and $1.78 per liquid liter depending on your location and the volume of nitrogen used, a steep increase compared to onsite production costs as low as $0.02 per liter.
Evaporation Losses – Wasting Money Without Realizing It
Even with the best cryogenic tanks, liquid nitrogen naturally converts back into gas over time. This process, known as “boil-off” or evaporation loss, can range from 1% to 2% per day and rises during periods of low nitrogen usage (e.g., weekends or plant downtime).
Imagine losing 2% of your supply every day—without even using it. For example, if you store 1,000 liters of nitrogen, that’s 20 liters lost daily. Over a year, this adds up to over 7,000 liters of wasted nitrogen—thousands of dollars your business has paid for but never benefits from.
Conventionally sourced nitrogen used for metal fabrication operations using laser cutters can waste anywhere from 10% to 20% of nitrogen used just to actuate widely used nitrogen pressure boosting systems.
Supply Chain Disruptions and Business Downtime
Relying on external deliveries means your nitrogen supply is vulnerable to delays due to logistical challenges, inclement weather, or unforeseen issues.
When supplies don’t arrive on time, it causes production delays, unplanned downtime, and emergency order fees. These disruptions not only slow operations but can also lead to significant financial losses and missed business opportunities.
Why Onsite Nitrogen Generation Is the Smart Alternative
To avoid the inefficiencies and risks of liquid nitrogen deliveries, more organizations are turning to onsite nitrogen generators. These systems allow businesses to produce nitrogen on-demand, eliminating many of the costs and challenges associated with bulk supply.
Slash Costs by Generating Nitrogen On-Demand
Onsite nitrogen generation is one of the most cost-effective nitrogen supply solutions for industrial manufacturers. Here’s how it saves you money:
- No Delivery or Rental Fees: Onsite generation eliminates recurring expenses like tank rental or delivery charges. Once installed, your nitrogen generator handles the full nitrogen supply process.
- Zero Waste from Evaporation Losses: By producing nitrogen as needed, you eliminate boil-off losses. Nitrogen remains in its gaseous state without requiring cryogenic storage, preventing unnecessary wastage.
- Low Operating Costs: Modern Pressure Swing Adsorption (PSA) and membrane nitrogen generators are highly energy-efficient. Producing a given volume of nitrogen onsite costs substantially less than purchasing it in bulk.
Never Run Out of Nitrogen Again
When you own a nitrogen generator, delays and delivery shortages are no longer a concern. The system produces constant nitrogen, keeping your operations running without interruptions.
- 24/7 Availability: On-demand nitrogen production ensures you always have the supply when you need it, even during high-demand periods.
- Full Control Over Supply: With onsite generation, you’re no longer at the mercy of volatile market prices or unpredictable suppliers.
The Bottom Line – Stop Overpaying for Nitrogen
Onsite nitrogen generation offers a transformative solution for businesses seeking efficiency and long-term cost savings.
Businesses relying on liquid nitrogen deliveries often overpay due to hidden costs like delivery fees, rental charges, and evaporation losses.
Supply chain disruptions can halt production, causing further financial setbacks.
Onsite nitrogen generators provide a reliable, cost-effective alternative with a return on investment in as little as six months.
By eliminating delivery fees, reducing evaporation losses, and providing uninterrupted supply, your enterprise can regain full control over its operations and budget.
Request a Cost-Saving Analysis Now
Implementing onsite nitrogen generation is a proven way to reduce nitrogen costs while ensuring a stable and efficient nitrogen supply. Contact Advanced Gas Technologies today for a free consultation and discover how your business can save up to 90% on nitrogen costs.