An average brewery can save between €5,000 and €20,000 per year by switching to on-site nitrogen production. This saving stems from eliminating delivery costs, cylinder rental fees, and waste costs associated with traditional nitrogen delivery. Small to medium-sized breweries typically reach the break-even point within 12 to 24 months. Additionally, in-house nitrogen production offers advantages such as supply security, improved product quality, and a lower ecological footprint. With an average consumption of 10-15 m³ of nitrogen per hour, your brewery can significantly benefit from this technology.
Why is nitrogen essential for breweries?
Nitrogen is indispensable in modern breweries because it is an inert gas that protects beer from oxidation and spoilage. In the brewing process, nitrogen is used for various critical applications that directly impact the quality and shelf life of beer.
First, nitrogen is used for purging tanks and lines. By replacing the present oxygen with nitrogen, you prevent oxidation, preserving the freshness and flavor of your beer. Without this protection, your beer would quickly develop a “cardboard-like” taste.
When tapping and bottling, nitrogen is equally important. It helps move beer through your system without disturbing the carbon dioxide balance, which does happen when CO₂ is used. Moreover, nitrogen creates that characteristic creamy head on certain beer styles such as stouts and porters.
Nitrogen is also used for pressure maintenance in tanks and kegs, which is essential for consistent product quality. It provides a stable environment in which your beer can mature without loss of quality.
How does on-site nitrogen production work for breweries?
On-site nitrogen production works by converting ordinary ambient air into pure nitrogen using specialized filtration technology. There are two main methods applied in breweries: PSA (Pressure Swing Adsorption) and membrane technology.
The PSA method uses special carbon molecular sieves that absorb oxygen, moisture, and other gases while allowing nitrogen to pass through. This method achieves very high purity levels (up to 99.999%) and is ideal for applications where extremely pure nitrogen is required.
Membrane technology, on the other hand, uses hollow fibers with a semi-permeable membrane. When compressed air is forced through these fibers, oxygen, water vapor, and other gases can escape through the membrane, while nitrogen molecules are retained. This method is more compact and requires less maintenance, but typically achieves lower purity levels (95-99%).
A complete on-site nitrogen production system consists of:
- An air compressor to compress ambient air
- Air pre-treatment equipment (filters, dryers)
- The nitrogen generator itself (PSA or membrane)
- A buffer tank to store the produced nitrogen
- Control systems for automatic operation
Integration into your brewery is relatively simple and usually requires only limited modifications to your existing infrastructure.
What are the direct cost savings with in-house nitrogen production?
The direct cost savings with in-house nitrogen production are substantial and come from various sources. The main saving is in the price per cubic meter of nitrogen, which drops from €0.20-€0.40 with delivered cylinders to just €0.02-€0.05 with in-house production.
You completely eliminate the delivery costs associated with traditional nitrogen supply. These can amount to thousands of euros per year, depending on your location and delivery frequency. The rental costs for cylinders or tanks are also a thing of the past, resulting in significant savings.
Waste through evaporation is a hidden cost often overlooked. With delivered nitrogen, up to 10-20% is lost through natural evaporation during storage. With on-site production, you use exactly what you need, when you need it.
You also save on labor costs and administration. No staff is needed anymore to manage cylinder deliveries, place orders, or process invoices. Additionally, you prevent production downtime due to empty cylinders or delivery delays.
| Cost item | Traditional delivery | On-site production |
|---|---|---|
| Price per m³ nitrogen | €0.20 – €0.40 | €0.02 – €0.05 |
| Delivery costs | €1,000 – €3,000 per year | €0 |
| Cylinder rental fees | €500 – €1,500 per year | €0 |
| Waste through evaporation | 10-20% of total | <1% |
When does a brewery reach the break-even point with a nitrogen generator?
A brewery reaches the break-even point with a nitrogen generator on average within 12 to 24 months. The exact payback period depends on various factors specific to your situation.
The size of your brewery and nitrogen consumption are the main variables. Medium-sized and large breweries with high consumption typically see a faster ROI, sometimes within 6-12 months. Smaller breweries with limited consumption may have a longer payback period of 18-30 months.
Your current costs for delivered nitrogen also play a role. Breweries that pay high prices for delivered nitrogen or are remotely located (with high transport costs) will reach the break-even point faster than breweries that already have favorable delivery contracts.
The initial investment varies depending on the capacity and type of system. A basic installation starts at around €15,000, while larger or more advanced systems can cost up to €50,000 or more. Maintenance and energy costs are relatively low but should be included in your calculation.
What indirect benefits does in-house nitrogen production offer besides cost savings?
In-house nitrogen production offers various indirect benefits beyond direct cost savings that significantly improve the operational efficiency and sustainability of your brewery.
Supply security is a major advantage. With on-site production, you are no longer dependent on external suppliers and don’t have to worry about delivery delays or shortages. You have 24/7 access to nitrogen, exactly when you need it.
The consistent quality of locally produced nitrogen improves your brewing process. You can adjust the purity level for specific applications, resulting in better beer with longer shelf life and more consistent flavor.
On-site nitrogen production has a significantly lower environmental impact than delivered cylinders. There are no transport emissions, no energy-consuming filling stations, and no cylinder waste. This reduces the CO₂ footprint of your brewery, which can be important for your marketing story and aligns with sustainability goals.
Moreover, it opens up opportunities for process optimization. With unlimited availability of nitrogen, you can experiment with new applications and techniques to further refine your brewing process.
How do you determine if on-site nitrogen production is profitable for your brewery?
To determine if on-site nitrogen production is profitable for your brewery, you should conduct a systematic analysis of your current consumption, costs, and operational needs. Start by accurately measuring your nitrogen consumption over at least several months.
Gather all data on your current nitrogen costs, including purchase or rental costs of cylinders, delivery costs, labor costs for cylinder management, and any costs due to production interruptions. Compare these with the estimated costs of an on-site system, including purchase, installation, energy, and maintenance.
Also assess the space requirements for a nitrogen generator and determine if your brewery can accommodate these. Most systems are compact and fit in a modest technical space, but you do need adequate ventilation and access to electricity.
Consider how your consumption might change in the future. If you have plans to expand or add new production lines, this could significantly influence the ROI calculation.
Finally, it’s important to conduct a detailed cost-benefit analysis with a reliable supplier who has experience in the brewery sector. They can help you dimension the right system and calculate an accurate payback period based on your specific situation.
If you are considering switching to on-site nitrogen production, we can help you with a personal analysis of your situation. We have extensive experience implementing nitrogen solutions in breweries of all sizes. Feel free to contact us for a no-obligation consultation in which we can explore together what savings are possible for your brewery.
