The industrial gas supply industry is undergoing a significant transformation, driven by the need for cost efficiency, sustainability, and operational resilience. One of the most noteworthy trends reshaping this landscape is the move toward companies producing their own industrial gases onsite.
This blog explores the drivers behind the shift toward onsite nitrogen production, its benefits, and its implications for the broader industrial gas supply industry.
The Drivers Behind the Decentralization of Gas Supply
Below are some of the reasons why businesses across multiple sectors are turning to onsite nitrogen generation.
Economic Factors
Traditional nitrogen procurement involves not only purchasing gas but also paying delivery fees, rental charges for tanks, and maintaining contracts with external suppliers. Onsite nitrogen generation eliminates these costs, offering substantial long-term cost savings.
Operational Resilience and Reliability
Supply chain disruptions have become an increasing concern, with variables such as weather, transportation challenges, the COVID pandemic and geopolitical issues frequently impacting supply reliability. By producing nitrogen onsite, businesses ensure a continuous, on-demand supply tailored to their specific needs.
Environmental Sustainability
Traditional supply chains contribute to significant carbon emissions due to the transportation of gas cylinders and liquid nitrogen tanks. Onsite nitrogen production drastically reduces this carbon footprint, particularly for larger-scale operations. Advanced onsite industrial gas generation technologies are designed to be energy efficient, further lowering environmental impact.
Technological Advancements in Onsite Generation
Modern PSA (Pressure Swing Adsorption) and membrane-based nitrogen generators have revolutionized the nitrogen gas supply market. These technologies have become increasingly compact, reliable, and efficient, allowing businesses across a range of industries to incorporate them seamlessly into their workflows.
Increased Demand for Nitrogen Across Industries
The demand for nitrogen continues to rise globally, driven by its diverse applications in industries such as food & beverage, pharmaceuticals, electronics, and metal fabrication. The growing need for nitrogen has accelerated the adoption of onsite generation, as companies strive to keep up with demand while improving efficiency and sustainability.
Onsite Nitrogen Production: A Pillar of Industrial Self-Sufficiency
So why should businesses choose onsite nitrogen generators? There are many benefits, such as:
Versatility and Wide Applicability
Nitrogen is an essential resource for industries ranging from preserving food freshness to creating inert environments for electronics manufacturing. Onsite nitrogen production offers businesses the versatility to support these applications.
Scalability and Customization
One of the key advantages of onsite nitrogen generators is their scalability. These systems can be customized to produce gas at specific purity levels and flow rates, catering to the unique needs of different industries.
Reduced Dependence on External Suppliers
By generating nitrogen in-house, companies gain greater autonomy, reduce reliance on third-party suppliers, and mitigate potential risks associated with supply chain disruptions. This shift not only improves operational control but also reduces lead times for receiving nitrogen.
Enhanced Safety
Traditional nitrogen supply methods involve handling high-pressure cylinders and cryogenic liquids, which come with inherent safety risks. Onsite nitrogen production eliminates these risks, as nitrogen is generated directly at the point of use.
The Broader Trend Toward Decentralized Gas Generation
While nitrogen leads the charge in onsite gas generation, other gases like oxygen and hydrogen are also seeing increased adoption. Some companies are also adopting multi-gas onsite generation systems, allowing them to meet their oxygen, nitrogen, and hydrogen needs simultaneously. These integrated systems enhance efficiency, streamline operations, and optimize resource utilization across the board.
Companies specializing in onsite gas generation solutions, such as AGT, play a pivotal role in driving this transition. Their innovations in compact, highly efficient gas generators are making onsite production accessible to a wider range of businesses, regardless of size or industry.
Challenges and Considerations for Adopting Onsite Nitrogen Production
While the benefits of onsite nitrogen generation are undeniable, businesses need to consider several factors before making the leap:
- Initial Investment Costs: Setting up onsite nitrogen generation systems requires upfront capital for equipment procurement and installation.
- Energy Consumption: Operating equipment like compressors consumes electricity, which businesses must factor into their operational expenses.
- Maintenance and Servicing: Like any technology, nitrogen generators require regular maintenance and servicing to ensure optimal performance.
- Space Requirements: Depending on the facility’s layout, finding adequate space for the equipment can be a challenge.
- Expertise and Training: Effective operation and maintenance may require training staff.
The Future Landscape: Onsite Nitrogen as the Norm
Experts predict a steady increase in the adoption of onsite nitrogen generation systems as industries continue to value cost-efficiency, operational resilience, and sustainability. These systems are likely to become standard in the industrial gas supply industry, particularly for businesses seeking long-term self-sufficiency.
The growing shift toward decentralization will likely compel traditional gas suppliers to evolve their business models. In addition, government policies promoting reduced carbon emissions and energy efficiency are expected to further accelerate the adoption of onsite gas generation solutions.
Invest in Onsite Nitrogen Generators with AGT
By investing in onsite nitrogen generating systems, businesses can strengthen their operational resilience and set themselves up for success in an increasingly self-sufficient industrial future.
Advanced Gas Technologies (AGT) is one of the leading suppliers of state-of-the-art PSA nitrogen and oxygen generators and membrane nitrogen generators throughout North America. Contact us today to learn about the latest trends in industrial nitrogen supply.