Many businesses using bottled nitrogen could actually produce their own nitrogen at a fraction of the cost that they buy it.
There are three underlying reasons for this:
Cryogenic distilled nitrogen produced through this process can attain a purity of 99.99% or higher – which is needed for certain applications. 99.99% and higher purity is only necessary in a handful of electronic assembly functions – Pharmaceuticals and food and beverage applications don’t even need 99.99% purity as a rule of thumb.
In many cases nitrogen in cylinders from a commercial gas company is the most expensive option. Costs are slightly lower for liquid nitrogen in a Dewar or bulk tank.
On-site nitrogen generators can be used to create on-demand gaseous nitrogen at purity's up to 99.999%.
What’s important to note is that you can inexpensively produce 95% to 98% pure nitrogen (5%-2% oxygen) which is suitable for a majority of applications – rather than over-paying for higher purity nitrogen from a commercial supplier. The choice of generator largely depends on the purity of nitrogen needed. Whatever purity you need, the level of O2 can be adjusted to your required purity level.
As a rule applications that need nitrogen of 95 to 98% purity, I’d recommend using membrane generators which produce nitrogen at the lowest cost per cubic foot.
Applications such as the blanketing of oxygen sensitive compounds, specialty chemicals and pharmaceutical processing need a high purity stream that requires the use of Pressure Swing Absorption (PSA) generators.
What Are The Costs To Generate On-Site Nitrogen?
On-site PSA and membrane systems are energy efficient and cost effective, requiring only enough energy to power the air compressor that supplies air to the system. Gas industry sources indicate that an air separation plant uses 1976 kJ of electricity per kilogram of nitrogen at 99.9% purity.
At a purity of 98 percent, the energy required for in-house nitrogen consumes 62 percent less energy.
Even for those applications requiring 99.9% purity, generating nitrogen in-house on-demand with a PSA system will use 28 percent less electrically compared to power costs for a third-party produced bulk nitrogen.
If you are looking to end your reliance on third party Nitrogen suppliers, we can help you with a nitrogen generation system that produces the purity you need in the quantities you need for a fraction of the cost of buying Nitrogen in. Call the team at Pye-Barker 404-363-6000 or drop us a line firstname.lastname@example.org and we can help you design your nitrogen system, supply it and install it.
Imagine having a raw material that is 78% pure and there is no royalty, lease or other fee associated with extracting it.
Why on earth would you go and buy a refined version of the raw material at $5 to $17 per m3? The only reason I can think of is that you never thought to extract it yourself.
I’m talking about Nitrogen gas. It makes up 78% of the atmosphere. With a simple on-site generation system, you can make your own with the purity you specify, test it for purity, and store it ready for use, at a cost in the range of 40-80% of buying it in from a gas supplier.
No more relying on bottle banks or bulk gas shipments. Just make your own at $3 per m3.
Obviously generating your own nitrogen gas isn’t the right choice in every situation.
When not to make your own.
When you switch from buying to producing nitrogen, you’ll obviously be buying a nitrogen generation system. This means you’ve got more equipment to monitor and maintain. In an ideal situation you’d want to be sure that your existing maintenance team can handle the extra little bit of overhead.
Then in order to make this a really viable transition, you’ll need to be sure that the savings from producing your own Nitrogen pays for the generation system in an acceptable time frame and then puts you squarely ahead on the financial statement. After all, your only ongoing costs for Nitrogen at this point are maintenance and power.
For smaller users of nitrogen, upfront investigation is required to see what your particular capital investment and time to pay off would be.
When to make your own.
If you are using large quantities of gas and can handle the minimal extra overhead of maintaining a nitrogen generation system then you are going to be able to slash your nitrogen costs by at least 40% but possibly all the way up to 80%.
It’s a very simple business case but as always, it’s best to work through this on a case by case basis.
If you need help reviewing if you should switch to Nitrogen generation from supplied gas then give the team at Pye-Barker a call on 404-363-6000 or drop us a line email@example.com and we can help guide you to the right answer for you.