Investing in an onsite nitrogen generator is a transformative decision for many businesses. Benefits of onsite nitrogen generation include cost savings, operational efficiency and sustainability. However, making the transition requires careful planning and a thorough understanding of your unique needs and operational constraints. To ensure a successful implementation, it’s important to address the following five key considerations.
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Nitrogen Purity Requirements
Nitrogen purity is one of the most important factors to evaluate when deciding whether to switch to onsite nitrogen generation and determining which type of generator best suits your needs. Different industries and applications require varying levels of nitrogen purity, typically ranging from 90% to 99.999%. The level of purity impacts not only the cost of onsite generation but also the type of technology—Pressure Swing Adsorption (PSA) vs. membrane separation—you should select. For example:
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Membrane generators can produce purities up to 99.9%, ideal for general manufacturing and inerting.
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PSA generators can produce purities up to 99.999%, matching the levels delivered in cylinders and dewars for applications requiring ultra-high-purity nitrogen.
The purity level of nitrogen delivered in bulk tanks, cylinders, or dewars is typically very high, usually ranging between 99.99% and 99.999%. However, not all applications require this level of purity, which means you may be paying for higher purity than needed. Onsite nitrogen generation allows you to tailor the purity to your specific needs, often at a much lower cost. If your business has applications requiring different purity levels, some systems can be adjusted to produce varying purities as needed. This flexibility can make onsite generation a viable and cost-effective option for businesses with diverse nitrogen needs.
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Nitrogen Demand and ROI
One of the most critical factors in deciding between onsite nitrogen generation and delivery is your facility’s nitrogen demand. The volume of nitrogen you use and the consistency of that demand play a key role in determining which option is more cost-effective and the best type of technology for your needs. Onsite nitrogen generation offers significant savings and flexibility for businesses with moderate to high nitrogen usage.
Onsite nitrogen generation typically becomes more economical than delivery when a business uses more than 5,000 cubic feet of nitrogen per month or more than six gas cylinders or one dewar of N2 weekly. The exact threshold can vary based on factors like delivery fees, rental costs and purity requirements. Facilities with consistent or high-volume nitrogen demands—such as food processing plants, electronics manufacturers, or pharmaceutical facilities—are prime candidates for onsite systems because the costs associated with delivery and storage escalate as usage increases.
For smaller operations or those with infrequent nitrogen needs, cylinder or dewar delivery may remain the more practical solution. However, as nitrogen demand rises, the recurring costs of delivery, rental fees, and downtime caused by cylinder changes can outweigh the initial investment in an onsite generator.
One of the key advantages of onsite nitrogen generation is the ability to adjust production rates to match variable demand. Unlike delivery contracts, which often lock businesses into fixed volumes and long-term agreements, onsite systems allow you to scale nitrogen production up or down based on your operational needs.
Buying a nitrogen generator can be a significant investment, but for businesses using nitrogen on a regular basis, the return-on-investment (ROI) period can be very fast—often, in about 8 to 18 months. The more nitrogen you use, the faster your return will be; even businesses with lower nitrogen use typically see returns within a couple of years. The ROI will depend on your nitrogen demand and the contract rate you are paying in your area. Don’t forget to factor in delivery fees, cylinder or dewar rental costs, and associated labor for managing deliveries and changing tanks.
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Space and Infrastructure Needs
Onsite nitrogen generators are designed to be compact and efficient, making them an attractive alternative to the bulky storage tanks or numerous cylinders required for delivered nitrogen. Transitioning to onsite generation can free up valuable floor space, reducing clutter and creating opportunities to optimize your facility’s layout. For many businesses, this shift not only improves space utilization but also enhances operational flow by eliminating the need for constant delivery management and cylinder handling.
Installing an onsite nitrogen generator does require careful planning to ensure the system is housed in a suitable location. The generator will need proximity to key utilities like electricity and compressed air, both of which are critical for its operation. For systems with higher purity requirements, particularly PSA generators, clean and dry compressed air is essential, so placement near the air compressor and air treatment components, such as a dryer and filters, is beneficial. Additionally, some systems may have ventilation requirements to dissipate heat or ensure efficient operation, which should be factored into the setup.
It is also important to consider the operating environment for the nitrogen generator.
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Membrane systems are generally more forgiving, operating efficiently in environments with moderate air quality and temperature stability. However, they still require clean, dry compressed air to prevent clogging or damage to the membrane fibers. Some membrane systems are designed for use in harsh operating environments.
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PSA systems, on the other hand, are more sensitive to air quality and require extremely clean, oil-free and dry air to protect the adsorbent material. They may also need more precise control over temperature and humidity levels to maintain consistent performance.
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Maintenance and Support
Onsite nitrogen generation systems are low-maintenance compared to traditional nitrogen delivery methods, but they do require some periodic maintenance. Maintenance needs will vary based on the nitrogen generation technology.
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PSA systems rely on adsorbent materials that may need occasional reconditioning or replacement.
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Membrane systems involve fewer moving parts and simpler maintenance routines. These systems generally require very little maintenance.
It is important to consider maintenance requirements for the compressed air system that feeds the nitrogen generator. Both types of systems require clean, dry compressed air. Make sure the air compressor, air dryers and filters are well maintained to ensure air going in meets the air quality requirements of the system.
A proactive maintenance plan, tailored to the specific system type, is critical for minimizing downtime, maintaining nitrogen purity, and maximizing the ROI of onsite generation. Partnering with a provider that offers training and technical support ensures issues are resolved quickly, keeping your operations running smoothly.
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Flexibility and Scalability
Your nitrogen needs today may not be the same in the future. A good onsite nitrogen generator should be adaptable to your business’s growth and evolving requirements. Look for systems with modular designs or expansion capabilities, allowing you to increase capacity without a complete overhaul.
This scalability is particularly important for industries with seasonal production spikes or businesses planning to expand their operations. Flexibility also extends to the system’s ability to produce nitrogen at varying purity levels, enabling you to support a wider range of applications.
Who Benefits Most from In-House Nitrogen Production?
Onsite nitrogen generation is an excellent choice for companies seeking greater control, flexibility, and cost-efficiency in their nitrogen supply. Businesses with the following characteristics are especially well-suited to make the switch.
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Use more than six gas cylinders or one dewar of nitrogen weekly: High nitrogen consumption means higher delivery and rental costs, making onsite production a cost-effective alternative for meeting continuous or large-scale demand.
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Don’t want to be locked into a contract for nitrogen delivery: Onsite systems eliminate the need for long-term agreements with gas suppliers, giving businesses the flexibility to adjust production without being tied to fixed delivery volumes or schedules.
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Have variable needs for nitrogen: Companies with fluctuating nitrogen demand, such as seasonal production spikes or project-based requirements, benefit from the ability to scale production up or down as needed with onsite systems.
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Have limited storage space: Onsite generation frees up valuable floor space by eliminating the need to store bulky cylinders, dewars or tanks, which can improve operational flow and optimize facility layouts.
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Want to maintain control of nitrogen purity: Onsite systems allow businesses to tailor nitrogen purity to specific applications, ensuring compliance with industry standards and avoiding the cost of over-specifying gas purity levels.
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Are concerned about environmental sustainability: By eliminating delivery-related emissions and reducing waste from unused nitrogen, onsite generation aligns with sustainability goals and reduces the company’s carbon footprint.
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Want to lower nitrogen gas costs: Onsite systems significantly reduce recurring costs associated with nitrogen delivery, rental fees and waste, offering a long-term solution that pays for itself within a few years for most high-demand users.
Ready to Make the Switch?
By addressing these five considerations for onsite nitrogen generation, you can ensure that your transition to in-house N2 production is smooth, cost-effective and aligned with your business goals. Whether you’re looking to reduce operational costs, enhance reliability or increase flexibility, onsite generation offers tailored solutions that grow with your needs.
Fluid-Aire Dynamics is your source for high-quality membrane and PSA nitrogen generators. Contact our team today to learn more about how onsite nitrogen generation can transform your operations and explore options customized to your requirements.
