When choosing between liquid nitrogen and generated nitrogen, various cost factors play a role. Liquid nitrogen involves recurring delivery costs, storage tank rental, and evaporation equipment, while nitrogen generators require a higher initial investment but have lower operational costs. For businesses with constant nitrogen consumption, a generator is often more cost-effective in the long term, with a payback period of approximately 1-2 years. The most economical choice depends on your specific consumption pattern, purity requirements, and available space.
What are the cost factors for liquid nitrogen and generated nitrogen?
The cost factors for both nitrogen systems differ fundamentally in structure. With liquid nitrogen, you primarily pay for regular deliveries, rental of storage tanks, and evaporation equipment. These costs scale directly with your consumption and often contain hidden costs such as delivery surcharges and rent increases.
With generated nitrogen, the emphasis is on the acquisition costs of the generator itself, followed by energy costs for operation and periodic maintenance. These systems produce nitrogen from ambient air, making them independent of external suppliers.
The comparison of these costs is particularly relevant for industrial applications where nitrogen plays an important role in production processes, quality assurance, or safety. A thorough cost comparison helps you choose the most profitable solution for your specific situation, taking into account consumption volume, usage patterns, and required purity level.
What is the initial investment cost for both nitrogen systems?
The initial investment differs significantly between both systems. For liquid nitrogen, the initial investment is relatively limited, primarily consisting of the installation of a suitable storage tank, evaporation equipment, and piping. These costs vary between €5,000 and €30,000, depending on the required storage capacity.
A nitrogen generator, however, requires a considerably higher initial investment, ranging from €15,000 for smaller systems to more than €100,000 for large industrial installations. These costs include:
- The generator itself
- Compressors and air treatment systems
- Storage tanks for the produced nitrogen
- Installation and commissioning
- Control systems
The price differences are strongly influenced by the desired capacity (expressed in m³ per hour) and the required purity level. A system that must produce nitrogen with 99.999% purity costs significantly more than a system that suffices with 95% purity.
How do the operational costs compare to each other?
For operational costs, we see a reversal of the cost pattern. Liquid nitrogen has ongoing high delivery costs that scale directly with your consumption. The price per cubic meter of liquid nitrogen varies between €0.15 and €0.40, depending on your consumption volume, contract duration, and geographical location.
Nitrogen generators, on the other hand, primarily have energy costs, resulting in a much lower price per cubic meter of produced nitrogen. The operational costs consist of:
- Electricity consumption: on average €0.03-€0.08 per m³ of nitrogen
- Maintenance costs: preventive maintenance and filter replacements
- Compressed air costs (if applicable)
For companies with high nitrogen consumption, the operational costs of liquid nitrogen can amount to thousands of euros per month, while the costs for a nitrogen generator remain relatively stable and mainly depend on energy consumption.
When is generated nitrogen more cost-effective than liquid nitrogen?
There is a clear turning point where generated nitrogen becomes financially more advantageous than liquid nitrogen. This point is reached when the savings on operational costs compensate for the higher initial investment. In practice, generated nitrogen is usually more cost-effective when:
You have a consistent consumption of more than 100 m³ of nitrogen per day. At this consumption level, you often achieve a payback period of 1-2 years for your nitrogen generator, after which you save significantly on your nitrogen costs.
Other factors that influence the turning point are:
- Continuity of use: systems that run 24/7 have a faster payback period
- Desired purity: lower purity requirements make generators relatively more economical
- Energy prices in your region: lower electricity rates promote the cost-effectiveness of generators
- Availability of infrastructure: existing compressed air facilities can reduce investment costs
For projects with temporary or very irregular nitrogen needs, liquid nitrogen often remains the most economical option, despite the higher costs per cubic meter.
Which hidden costs are often overlooked?
When comparing both systems, certain costs are regularly forgotten, which can lead to unpleasant surprises. With liquid nitrogen, these are often delivery guarantees, minimum purchase obligations, and price indexing in multi-year contracts. Transportation costs for unexpected deliveries or rush orders can also be significant.
For nitrogen generators, the following hidden costs are often overlooked:
- Space usage: a generator requires permanent space in your facility
- Spare parts: certain components may require inventory
- Specialist knowledge: maintenance personnel must be familiar with the system
- Back-up systems: a redundant system is necessary for critical applications
- Quality control: regular tests to verify purity
Additionally, for both systems, the environmental aspect can form a hidden cost item. The transport of liquid nitrogen has a significant CO₂ footprint, while nitrogen generators are more sustainable but do consume electricity.
What are the key conclusions when choosing between liquid and generated nitrogen?
When making a well-considered choice between both nitrogen systems, it is essential to perform a total cost analysis specific to your situation. Liquid nitrogen offers flexibility and low startup costs, but higher operational costs in the long term. Nitrogen generators require a higher initial investment but offer lower, more predictable operational costs.
For most industrial applications with regular nitrogen consumption, a nitrogen generator offers the best long-term value, with a payback period that often falls within 1-2 years. Moreover, it provides independence from external suppliers and price fluctuations.
At Presscon, we advise clients daily on the most cost-effective nitrogen solution for their specific needs. Through our experience in various sectors such as greenhouse horticulture, breweries, nitrogen solutions for the food industry, data centers, and geothermal projects, we can make an accurate cost analysis that takes into account all factors, including hidden costs.
Ultimately, your choice should be based on a combination of financial considerations, operational needs, and future plans. A good nitrogen solution grows with your business and offers not only cost benefits but also process certainty and sustainability. For personalized advice on your nitrogen needs, contact our nitrogen systems specialists today.