Nitrogen Generator vs. Bottled Nitrogen: Why Companies Switch to On-Site Gas

Nitrogen is applied in many industrial processes, such as food packaging, electronics and metal manufacturing, every day. For years, the standard has been to use bottled nitrogen. Ordering is easy and use is simple. As demands increase and costs increase, more businesses begin to wonder, though, whether there is a better way. Nitrogen generator are becoming more popular as a source of a continuous supply of nitrogen, as opposed to having to be delivered. This change isn't simply a saving-of-money thing. It also affects the safety of the team, storage, day-to-day team activities and more. Knowing the difference will enable you to choose the right setup if you are looking for the best one for your work.

Hidden Costs and Pain Points of Bottled Nitrogen

Bottled nitrogen is initially easy. Order the cylinders, and use them when necessary. However, once the time is up, the little problems start to escalate and many companies find out the hard way the actual price after months and even years of use.This is just one aspect of the costs, but the most evident is the refill cost. Some hidden expenses such as delivery charges, cylinder hire costs and deposits may be included in your monthly payments. The more you use, the more cylinders will need to be stored and managed. It is not uncommon for companies to not be aware of the total expenses until they are careful about checking their bills.Plus the time that has to be spent with these cylinders to be handled. Staff need to be able to monitor levels, place orders for and receive deliveries and change out empty tanks. This can lead to production interruptions in a busy production environment. For example, a small food packaging company may be informed by the tank too late to stop production resulting in delays and missed deadlines.One concern is storage. Nitrogen cylinders take up space, and they need to be stored safely. The more tanks there are, the greater the chance for accidents. If not cared for correctly, it is possible to injure yourself when moving heavy cylinders. Safety checks and training have become a regular occurrence and there is a greater responsibility for the team.Reliability of supply may be an issue. Weather, traffic or supplier conditions may cause for an extended delivery time. Some firms have difficulties, during peak demand, to get enough supplies when they need them. This will add stress to operations that need a continuous flow of nitrogen.If you combine all of the above, plus hidden fees, hours worked, safety hazards and supplies being delayed, etc., you will understand why so many businesses start looking for a more consistent and predictable solution.

Long-Term Cost Savings Breakdown of On-Site Nitrogen Generation

An on-site system produces nitrogen when it is needed, using compressed air. This Nitrogen machine saves on the ongoing expense of having to purchase bottles. No delivery fees, no cylinder rental fees and never have to continue paying for refills. These savings increase in a regular and predictable manner over time. Many companies find they can afford to have a generator running on electricity and routine maintenance rather than paying to have gas delivered to the generator monthly.Let's take an average sized food processor with 1000 employees. They were buying a quantity of cylinders each week until they were able to change. Demand affected price and that rush price orders were more expensive. They installed a generator and their monthly expenses are not as erratic. They also had a power and maintenance cost as well, though it wasn't as high and easier to budget.There are also savings on labor costs. The staff no longer have to deal with moving or delivering heavy cylinders. This saves time for more important activities, and helps to minimize the risk of delays due to empty tanks. Any time a little can save you can really add up over a year's worth of business.Another factor is waste. There is a likelihood that there will be excess nitrogen gas in returned cylinders which you have already paid for with bottled nitrogen. That's where on-site systems come in handy, producing only what you need and helping to limit this type of loss.The cost of a nitrogen generator, when installed initially, may be more or less recovered over a few years. The savings thereafter become more apparent. This is a change that can transform nitrogen from a cost that is on the rise to a cost that can be managed and controlled for a company with steady or increasing demand.

24/7 Continuous Gas Supply, Eliminating Supply Interruption Risks

A major change companies see after implementing an on-site nitrogen generator is that they will no longer notice the constant up and down supply of nitrogen. On demand production of nitrogen, instead of scheduled delivery and maintaining cylinder levels. As long as there is power and compressed air in the system, it continues to run.There is also a reduced need for emergency planning. Rather than ordering additional cylinders in case, companies can use their own system to satisfy daily needs. This will not only save storage space, but also make things easier to operate.

Significant Advantages in Safety Management and Space Occupation

Working with bottled nitrogen always poses a bit of stress, particularly in active work areas. Cylinders are large, tall and require careful handling. This Nitrogen gas generator can easily become a safety issue in a production room or in a factory. They must be moved in a proper manner and, even then, accidents can occur when a cylinder falls or if a valve becomes damaged.On-site nitrogen generation does that differently. Nitrogen is generated in a plant or site and not stored or transported as high-pressure cylinders. Human need for frequent manual handling drastically reduces. This does enough to minimize the risk of injury and create a more orderly and less cluttered work environment.Space is another obvious one, too. Special storage space is needed for bottled nitrogen. The more you use it, the more cylinders are en route to be used or returned. This results in crowded corners in many facilities where racks of tanks can be seen. It can make it difficult to move around, clog walking paths or occupy valuable production space that could be better utilized.Most of that storage is lost with an on-site system. Equipment is typically placed within one location, typically close to existing air systems. All the cylinders are located in one place. This will help maintain a cleaner and easier to handle workspace.For instance, a small room could have been originally used for storing nitrogen cylinders in a packaging facility. The room can then be used as storage for materials or equipment, enhancing workflow and efficiency, after switching to on-site generation.There are less obvious ways of improving safety too. It doesn't require a lot of cylinder changing and reduces the exposure to high pressure gas connections. This reduces the number of trucks using areas to load, thus decreasing the potential for unloading accidents.As they age, a loss of handling and improved space utilization results in a safer and more efficient workplace. Teams are able to operate with greater freedom and managers do not have to worry around gas storage or safety issues associated with gas handling.

ROI Period and Economic Benefit Analysis

The primary consideration for companies considering the move to an on-site nitrogen generator is: how soon will the investment pay off?It depends on the amount of nitrogen used per day. The payback is longer for small users. The return might be sudden for factories that operate 24 hours a day and that use nitrogen as a gas.In actual cases, the difference in business is seen in 1-3 years. This is because of the simplicity of the reason. The need for bottled nitrogen is never-ending. All your refills, deliveries, rentals and handling charges continue to accumulate. Most of these recurring expenses go away with on-site generation. The major operating expenses are electricity and simple maintenance; these costs remain relatively constant over time.Let's use a medium-sized metal processing plant as a case in point. They would use to order cylinders at least a couple times each week. In peak production times they even charged for rush orders. With the installation of a generator, their monthly nitrogen consumption was reduced to a small fraction of the previous amount. Initial equipment costs were a bit higher, but that savings began to add up on day one.Another factor that impacts ROI is production stability. If the supply is stable there are fewer interruptions. A few manufacturing delays can result in unused materials or lost orders. Those small losses being avoided also have value, although it may not be apparent on the gas bill.There are still costs involved in maintaining them, though most of the time they should be predictable. A lower cost of cylinders can be more difficult to plan than the costs of filters, occasional servicing and power.As time goes by, the purchase of the investment becomes a cost saving instrument instead of a large purchase. Once the payback is over, the savings are ongoing month after month. That long-term stability is as key to many businesses as the return on investment.