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

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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.