Nitrogen Articles

Calculating the ROI of On-Site Nitrogen Generation

on-site nitrogen - ROI

Are you currently relying on delivered nitrogen and tired of the hassle and recurring costs? If nitrogen plays an important role in your daily operations, chances are you have considered investing in an on-site nitrogen generator but are still unsure if the return on investment (ROI) is worth it. The continued costs of bulk nitrogen gas that include monthly bills, leasing fees, long term contracts and more, can significantly add up over time. Fortunately, you can eliminate these problems by generating your own nitrogen and reduce your overall operating expenses with an on-site nitrogen generation system. Customers who switch to nitrogen generators can see a 40%-80% reduction in costs and expect steady ROI within 6-18 months.

Factors to Consider when Determining Annual Nitrogen Generator Costs

While the vast majority of manufacturers still get their nitrogen supply through bulk delivery, you may want to stop being one of them. It’s time to make the switch to an on-site nitrogen generation system.

The ultimate justification for investing in a nitrogen generator is ROI. Continue reading below to learn about the factors to include when calculating the ROI of your on-site nitrogen generator:

  • Costs: You must consider how much you are paying for your delivered nitrogen supply, including the equipment, in addition to both rental and delivery fees.
  • Wasted Materials: Take into account how much of the delivered nitrogen gas leaks or is wasted by using your cylinders. On average, you will lose about 10% of the gas.
  • Employee Accident Coverage: Your employees are more susceptible to injury if they are required to handle or work with nitrogen. Consider the costs you are paying for employee accidents.
  • Time Lost: Delivered nitrogen takes up a lot of your resources, including time. This is valuable time that your employees could be using to work on something more productive.

Once you have a solid understanding of these factors that determine on-site nitrogen generator ROI, you can determine your annual costs.

Invest in a Membrane or PSA Nitrogen Generator for Your Business

When you invest in a membrane or pressure swing absorption (PSA) nitrogen generator from Compressed Gas Technologies Inc, you can expect the system to pay for itself in less than 2 years on average. While the initial costs can be higher than traditional bulk delivery methods, over time, your investment will minimize the impact of on-going supply costs by only producing nitrogen gas when you need it and at the purity, pressure and flow rate you require.

When you work with us, we can help you determine your exact requirements in order to provide you with the appropriate system that is suitable for your specific application. Both our membrane and PSA nitrogen generators are delivered to you as complete systems. For further peace of mind, our nitrogen generators come pre-tested, fine-tuned and thoroughly inspected to ensure that they meet customer needs.

For all Canadian and US-based inquiries, please contact our office at +1 (877) 737-7760, by email at or fill out our online form for more information about our nitrogen generation products and services.