Why More Industries Are Switching to On-Site Oxygen & Nitrogen Generation – Cost & Convenience Explained
Use of Oxygen and Nitrogen in industrial applications is increasing day by day due to unique physical and chemical properties. Typically oxygen is used in Steel, Medical, Chemical, Water Treatment industry where as nitrogen is used in Food, Electronic, Pharmaceutical industries.
There is constant discussion about whether enterprises should use bottled gases or have onsite generation facilities. Onsite generation facilities, however, are the obvious choice when taking into account the associated costs and the convenience features mentioned below.
Let's go into further specifics:
- Benefits of Onsite Oxygen and Nitrogen Generator
- Constant and Dependable Supply
- Provides a steady supply of gas to ensure continuous production.
- There is no chance of delays brought on by problems with suppliers or transportation.
- Adjustable Levels of Purity
- Levels of gas purity can be changed to satisfy certain industry standards.
- Scalable solutions let businesses adjust their output to meet demand.
- Increased Security
- Removes the dangers of handling and keeping cryogenic liquids or high-pressure gas cylinders.
- Lowers the risk of supply chain accidents or gas leakage.
- Advantages for the Environment
- Lowers carbon footprint by getting rid of emissions from transportation.
- Uses less energy than conventional gas supply techniques.
1. Initial Investments
Setting up an on-site Oxygen or Nitrogen generator requires an initial capital investment. The cost depends on various factors, including:
- Plant capacity: Higher capacity plants require larger PSA systems, impacting costs.
- Technology type: PSA (Pressure Swing Adsorption) have different investment structures.
- Installation & setup: Expenses include site preparation, piping, and electrical connections.
- Customization: Additional features like remote monitoring, purity control, and automation increase the cost.
While the initial investment may seem moderate, it pays off in the long run with substantial savings.
2. Operational Cost
Compared to purchasing gas cylinders or liquid bulk deliveries, operating an on-site generator is far more economical. Key factors affecting operational expenses include:
- Electricity consumption: PSA plants primarily consume electricity, making energy efficiency a crucial factor.
- Maintenance costs: Regular maintenance, including filter replacement and system checks, is required but remains lower than recurring delivery and rental fees of cylinders.
- Manpower costs: On-site generators require minimal manual intervention, significantly reducing labour expenses.
- Downtime costs: Since production happens on demand, industries avoid costly delays caused by external suppliers.
3. Savings Compared to Cylinder Supply
Industries relying on cylinder-based gas supply face several cost inefficiencies, such as:
- Recurring purchase & rental costs: Continuous purchasing of cylinders results in long-term expenses with no return on investment.
- Logistics & handling charges: Transportation, storage, and safety compliance of high-pressure cylinders add up to significant costs.
- Evaporation & wastage: In the case of liquid oxygen/nitrogen, losses due to evaporation during storage and transfer impact costs.
- Price fluctuations: Market-driven price hikes of industrial gases can impact profitability for businesses relying on external supply chains.
With an on-site generation system, industries can reduce their gas procurement costs by 40-70% over time.
4. Payback Period
The return on investment (ROI) for an on-site gas generator is highly attractive. Here’s why:
- Short payback period: Most businesses recover their investment within 06-24 months, depending on gas consumption levels.
- No long-term dependency: Unlike cylinders or liquid supply, an on-site generator provides a fixed cost structure with no unexpected price hikes.
- Government incentives & subsidies: Certain industries receive tax benefits or subsidies for adopting sustainable gas generation solutions, further reducing payback time.
Additional Benefits Beyond Cost Savings
Apart from cost advantages, industries also benefit from:
5. Reliability & Uninterrupted Supply
Having an in-house gas generation system ensures a steady supply, eliminating risks of shortages, supplier delays, or logistical issues.
6. Enhanced Safety
Handling high-pressure cylinders poses safety risks, including leaks, explosions, and mishandling accidents. On-site generation is a safer alternative, reducing workplace hazards.
7. Sustainability & Environmental Benefits
By eliminating transportation and reducing CO2 emissions associated with gas supply logistics, on-site generation is a greener solution for industries.
When cost, convenience, and other factors are taken into account, it is clear that onsite oxygen and nitrogen generators are revolutionising the sector.
One of the top providers of on-site oxygen and nitrogen generation solutions is Airox Technologies. From gathering requirements to installation and training, our team of professionals assists our clients.
Go to https://airoxtechnologies.com/ to learn more.