In almost every chemical and manufacturing facility, food and beverage processing plant, brewery, or pharmaceutical operation, there is a nitrogen generator hard at work. For years, these facilities paid a high premium to have bulk liquid nitrogen delivered and stored. This changed in the early 1990s. On-site nitrogen generator technology matured, and became more affordable. The challenge became how to manage the cost of your nitrogen generator to maximize return on investment.
In this article, we look at the financial benefits of on-site nitrogen generation, key factors that determine the total cost of ownership, and how to keep operational costs as low as possible.
The Cost-Savings of On-Site Nitrogen Generation
Businesses that switch to on-site nitrogen generation typically reduce their nitrogen costs by 40-80% compared to bulk liquid or cylinder supply. They eliminate the hidden costs such as tank/cylinder rental fees, hazmat and handling surcharges, increases in supplier fees, and delivery fees.
This shifts the costs from a supplier-controlled expense to a stable, internally managed utility. Most businesses recover the full cost of the system within two to four years.
In addition, it eliminates the 10% of waste that occurs by storing in a cooled tank. With on-site generation, you produce what you need, when you need it, and waste essentially goes to zero.
Understanding The Costs of On-Site Nitrogen Generation
There are four main factors when it comes to the costs of on-site nitrogen generation:
- Identifying the correct purity level for your application
- Controlling purity level cost-efficiently
- Determining the energy costs of the compressed air feeding the nitrogen generator
- Calculating the total energy cost per SCFM of nitrogen produced
These factors provide a complete picture of what your nitrogen actually costs to produce, and more importantly, where there are opportunities to reduce that cost. We explore this topic further in our previous article, How Nitrogen Generators Work To Maximize Efficiency & ROI.
How Purity Impacts Performance And Cost
The single most important variable in nitrogen energy cost is purity level. This is frequently mismanaged. Many facilities assume that a slightly higher purity setting is a safe or conservative choice, but it is a costly one.
Make sure that your nitrogen purity is set only as high as your application requires. A small adjustment can lead to big savings. For example, the jump from 99% to 99.9% nitrogen purity can require significantly more compressed air input. That is a meaningful cost increase for what may be an unnecessary upgrade.
Knowing your true compressed air energy cost per SCFM provides a baseline to evaluate if your system is operating optimally, or quietly costing you more than it should. Many facilities make the mistake of not calculating the precise purity setting they need, or not actively monitoring it. We strongly encourage a reliable control system to keep a watchful eye on this.
How Your Compressor Impacts Performance And Cost
The air compressor powering your system plays a leading role in how much on-site nitrogen generation can save your business.
An oversized compressor will short cycle and waste energy. An undersized one will struggle to keep up. It is also critical to maintain your system so that leaks, dirty filters, and inadequate pressure don’t force your compressor to work harder, increasing the cost of every SCFM of nitrogen produced.
The harder your compressor has to work, the more electricity is required to operate it, and the higher your cost of nitrogen production climbs.
If you are unsure where your nitrogen system stands, a compressed air audit can identify where energy is being wasted, and what it is costing you.
Contact Compressor Services today to schedule an assessment.
Compressor Services is an industrial air compressor and compressed air equipment sales, service, installation, rental and repair company.
