What Is the ROI of an On-Site Nitrogen Generator?

Whether you package food, manufacture electronics, or brew beer (along with a slew of other industries), you use nitrogen on a daily basis. And if you are like most companies who rely on nitrogen for their daily operations, you have probably contemplated what the ROI for a nitrogen generator is. You currently rely on nitrogen delivery and are done with the recurring costs and hassles they bring, but you aren’t sure if the nitrogen generator system ROI is worth it. To assure you that it is, here is a closer look at a realistic nitrogen generator ROI.

Factors to Include when Calculating an On Site Nitrogen Generator ROI

Before you can begin to do the actual calculations of what a nitrogen generator ROI really is, you have to make sure you understand all of the factors at play. Some of the things to consider include:

  • How much you currently pay for nitrogen delivery, including the cylinders themselves along with the rental and delivery fees. And remember, this is a recurring charge that will never go away if you keep using this method of obtaining nitrogen.
  • How much nitrogen gas is being wasted by using these nitrogen cylinders. Approximately 10% of the gas never gets used in a cylinder.
  • How much you are paying for employee accidents due to them working with the liquid nitrogen that is a harmful -320 degrees Fahrenheit.
  • How much time is wasted dealing with the logistics of the delivery and pick-up of nitrogen cylinders. This is time that your employees could be working on something else.

Example of a Nitrogen Generator System ROI

Now that you understand all of the factors that go into computing the true ROI for a nitrogen generator, let’s break down some actual figures, assuming 6 days per week at 16 hours per day usage.

Annual Cost for Bulk Nitrogen

  • Assume that each month, you use 2,880 hundred cubic feet (CCF) of nitrogen gas.
  • If purchased at the average rate of $0.80 per CCF, this amount of bulk nitrogen would cost you $2,300 per month.
  • This equates to an annual bulk nitrogen gas cost of $27,650, plus any delivery charges or rental tank fees.

Annual Cost for an On Site Nitrogen Generator

  • Assuming the same usage needs in the example above, you purchase a nitrogen generator that produces 683 SCFH.
  • You pay an average of $0.10 per kwh to power the generator.
  • This puts the cost of the nitrogen gas down to $0.0614 per CFF.
  • To meet the same needs mentioned above, you would pay an annual cost of $2,120 to run the equipment. Add in about $550 for maintenance and filter changes, and your annual cost of a nitrogen generator is $2,670.

Using this example, you can expect to have a full nitrogen generator ROI within 17 months. After that time, you will continue to save over $25,000 per year. Of course, your operation needs may vary from this example, but the point is clear: While a nitrogen generator has a higher upfront cost, it will pay for itself time and time again.
If you want to see an example of what your ROI for a nitrogen generator could be, contact On Site Gas today.

How to Determine the Cost of a Nitrogen Generator

Are you considering purchasing a nitrogen generator and wondering how much they cost? These systems can cost anywhere from a few thousand dollars to more than $30,000, depending on the size of the generator and your specific needs.
Let’s take a look at how to determine the cost of a nitrogen generator.

How Much Nitrogen Do You Use?

Before you purchase a nitrogen generator, it’s important to determine how much you use on a daily, weekly, and monthly basis. If you’ve previously used nitrogen cylinders, an easy way to determine your average usage is by examining your past purchases. What was the volume of gas in those cylinders? How much did they cost to rent, and did you run out of nitrogen at any point?

What’s the Ideal Purity of Your Nitrogen?

Nitrogen generators have the ability to produce purities of up to 99.999 percent.. In addition to determining your purity level, you need to know the required flow and outlet pressure. These three variables will help to determine the cost of your equipment.

What Type of Nitrogen Generator Do You Need?

Nitrogen generators typically come in two forms – stationary and portable. Stationary nitrogen generators do not move; once they are installed, they must remain in place. Portable generators, on the other hand, can be moved using a trailer system. Your cost to purchase will depend on the type of system you need for your business.

How Nitrogen Generators Can Save You Money

For many businesses that require nitrogen, the go-to solution is to rent cylinders because it’s fast and reasonably reliable. However, these tanks usually never get emptied and you are wasting as much as 20 percent of the encased nitrogen. Cylinders must also be transported within your facility, which can lead to workplace accidents and an increase in workers compensation claims.
Unlike nitrogen cylinders, on-site nitrogen generators provide a constant supply of nitrogen directly on your property, you won’t have to worry about the risks associated with transportation. Therefore, while there is an initial investment to purchase a nitrogen generator , purchasing one could save you money in the long run.

How to Buy a PSA Nitrogen Generator

Here at On Site Gas, we offer new and used nitrogen generators. We have membrane nitrogen generators, portable generators, nitrogen filling stations, custom engineered systems, and Pressure Swing Adsorption (PSA) nitrogen generators for sale. If you know the type of system you’d prefer, you can order it directly from us at affordable prices. And if you’re not sure or you want to spec your system, we offer custom quotes. Contact us today to discuss your nitrogen needs!

10 Common Foods Packaged with Nitrogen Gas

Nitrogen gas is essential for the food packaging industry, as it increases the shelf life of packaged food products. The presence of oxygen in a package can lead to mold growth and spoiling before its use-by or expiration date. By removing the existing oxygen and replacing it with nitrogen, the food will remain fresh and safe to eat for a longer period of time.

Which Foods Are Packaged with Nitrogen Gas?

Modified atmosphere packaging is extremely common in the food industry. It is the process of removing the oxygen from a package and replacing it with nitrogen gas. A good rule of thumb is that if the food is packaged in an air-tight container, there’s a good chance the gas inside is nitrogen rather than normal atmospheric air.
The following foods are typically packaged with nitrogen gas:

  • Chips, Popcorn, Nuts, and Other Snack Foods
  • Fresh Meat
  • Prepackaged Lunch Meat
  • Salad Mixes and Bags of Lettuce
  • Pre-cut Apples and Carrot Sticks
  • Bacon, Smoked Sausage, and Kielbasa
  • Wine Bottles
  • Emergency Food Rations
  • Berries
  • Frozen Foods

Nitrogen Gas in Food Packaging

Nitrogen gas is used in food packaging because it preserves the color, flavor, and texture of the product while preventing spoilage and extending the shelf life. In the case of chips and snack foods, the nitrogen gas also provides padding that prevents the products inside from breaking into crumbs. If these same foods were to be packaged with air, they would quickly start to change color, grow mold, and spoil. Therefore, when you see a package of lunchmeat or a container of sliced apples with a broken seal, you should never purchase it. This is also why supermarket employees are required to remove and discard damaged packages.

Vacuum Packing with Nitrogen

Modified atmosphere packaging requires the use of a vacuum. During the packaging process, the food is placed into the container. Then, all of the oxygen is removed using the vacuum. The package is then filled with nitrogen and immediately sealed. This process is often used for items like chips, popcorn, pretzels, and lunchmeat.

Nitrogen Gas Generators for Food Packaging

Here at On Site Gas, we sell new and used nitrogen gas generators for use in the food industry. You can choose from PSA nitrogen generators, nitrogen membrane generators, nitrogen cylinder filling stations, and custom engineered systems. Our machines have the ability to produce up to 99.999 percent pure nitrogen, which is necessary for preserving moisture laden foods, like sliced and cut vegetables, as well as foods that are meant to sit at room temperature.
To learn more about our nitrogen generator systems for food storage, contact us today.