Is it Cheaper to Generate my Own Nitrogen Gas?

Before comparing the costs, it's important to assess your specific nitrogen needs: 

1. Volume Requirements: How much nitrogen do you need daily, weekly, or monthly?

2. Purity Levels: What level of nitrogen purity is required for your operations? 

3. Flow Rate: At what rate must the nitrogen be supplied? 

Renting nitrogen cylinders is a common and straightforward option for many businesses. However, several cost factors come into play:

1. Rental Fee: Regular payments are required for cylinder rental, typically monthly. These can accumulate significantly over time. 

2. Gas Costs: Payment is required for the nitrogen in each cylinder. Costs vary depending on volume and purity.

3. Delivery and Handling: Additional charges for delivery and pickup, as well as handling fees, can increase the overall cost. 

4. Storage and Safety: Compliance with safety regulations for storing nitrogen cylinders often incurs extra costs for proper storage facilities and safety measures. 

5. Downtime and Labor: Managing cylinder logistics can result in operational downtime and labor costs associated with moving and connecting cylinders.

On-site nitrogen generation offers an alternative to renting cylinders. Here's a breakdown of the costs involved:

1. Initial Investment: Purchasing a nitrogen generator involves a significant upfront cost. Prices range based on capacity and technology, from a few thousand to tens of thousands of dollars.

2. Operating Costs: Nitrogen generators require electricity to operate. These costs are usually lower than the combined expenses of renting and managing cylinders. Additionally, regular maintenance is needed.

3. Maintenance: Generators require routine maintenance, such as filter changes and servicing, to ensure optimal performance.

4. Installation: Initial setup costs can vary depending on the complexity of integrating the generator into your existing system.

5. Space and Infrastructure: Generators need dedicated space and may require infrastructure modifications to accommodate the new equipment. 

Long Term Costs

Nitrogen Cylinders: While renting may seem affordable initially, the long-term expenses of rental fees, handling charges, and potential downtime can become substantial over time.

Nitrogen Generators: Despite a higher upfront investment, generators often prove more economical in the long run due to lower operational costs and the elimination of rental fees.

Convenience and Efficiency 

Nitrogen Cylinders: Managing inventory, scheduling deliveries, and dealing with supply interruptions can be cumbersome and impact productivity.

Nitrogen Generators: Generators provide a continuous, on-demand nitrogen supply, reducing the risk of downtime and the logistical hassle of managing cylinders.

Scalability

Nitrogen Cylinders: Scaling up operations with cylinders involves renting more cylinders, increasing complexity and costs.

Nitrogen Generators: Generators can be designed or upgraded to meet growing demands, offering a more scalable and flexible solution.

Consider a scenario where a laboratory requires 500 cubic meters of nitrogen per month at 99.9% purity:

Nitrogen Cylinders: Renting cylinders might cost about $0.20 per cubic meter, including rental and handling fees, totaling $100 per month.

Nitrogen Generators: Operating a nitrogen generator might reduce the cost to about $0.05 per cubic meter when factoring in the initial investment spread over its lifetime, plus operational expenses, totaling around $25 per month.

In this scenario, the nitrogen generator emerges as a more cost-effective solution within a relatively short payback period.

Choosing between renting nitrogen cylinders and generating your own nitrogen involves weighing several factors, including your specific usage needs, financial situation, and operational requirements.

For laboratories with consistent and substantial nitrogen demands, investing in a nitrogen generator can offer significant long-term savings and operational efficiencies. Conversely, smaller operations with lower or intermittent nitrogen needs might find renting cylinders more practical and cost-effective.

To accurately assess which option is better for your laboratory, it’s crucial to conduct a detailed cost-benefit analysis. Fortunately, Organomation offers a handy Nitrogen Generator Calculator that can help you determine when the acquisition of a NITRO-GEN generator will pay for itself based on your nitrogen consumption and usage.