Learn how switching to a nitrogen generation system will significantly reduce your nitrogen cost.

Nitrogen gas is used widely by many different industries for a variety of purposes. For example, it can be used in food and beverage production for modified atmosphere packaging, in pharmaceutical production for inerting milling processing chambers or in metal fabrication for laser cutting. All of these industries and others use nitrogen because it is ideal for their application, however it isn’t always ideal for their bottom line.

A company’s nitrogen cost will depend on how its nitrogen is supplied. Traditionally, nitrogen gas has been supplied in gas cylinders, or in bulk in gas dewars or tanks. Both of these methods are expensive and out of date. When purchasing nitrogen in cylinders, the overall nitrogen cost is going to be high as the gas cost isn’t the only one which needs to be met. With cylinder supply there are several costs to consider such as the daily cost of renting the cylinder, the cost of delivery, the cost of order processing and the cost of health and safety training for staff who need to be taught the correct way to move and change the cylinders when they are depleted. On top of these costs, it’s also necessary to account for frequent price increases applied to the nitrogen gas which the cylinders are filled with. Then it’s necessary to account for the advised gas abandonment. With cylinders it is generally recommended to abandon the last 10% of the gas content as this is the portion of the gas which has been most contaminated while the cylinder has been in use.

When nitrogen is supplied in bulk in dewars or tanks, this is usually less expensive than using cylinders but it’s still not the most cost-effective nitrogen supply method. A significant amount of the nitrogen stored in dewars and tanks can be lost due to outgassing, which is very common. This means a company will often be paying for more nitrogen than it is actually using, due to the gas which evaporates in storage. As with cylinders, on top of the price of the gas (which frequently increases) there are also admin and delivery costs to take into consideration.

Cost-effective nitrogen with a nitrogen generator

Improved Efficiency

Fortunately, there is a method of nitrogen gas supply which allows much more control over nitrogen cost. With a nitrogen generator, or nitrogen generation system, nitrogen is produced on demand, only when it is required. There is no lost gas, and therefore no wasted money. By eliminating payments for gas which is not being used, and by only producing gas when it is required, a nitrogen generator is a much more efficient supply method than cylinders or dewars.

Improved Stability

With nitrogen supplied in cylinders, dewars or tanks, gas price increases are always going to be an issue for budgets.  On the other hand, with the purchase of a nitrogen generator, you never need to pay for your nitrogen gas, and the gas will never be subject to price increases. After the initial payment for the nitrogen generator the only other costs to be factored into your budget will be the cost of the electricity your generator uses and for annual maintenance. Maintenance costs can usually be ‘locked in’ for a number of years, making them easy to factor into budgets for years to come.

If you would like to reduce your nitrogen cost while also improving efficiency, stability and the green credentials of your organisation contact Peak Gas Generation today.