The ROI of investing in in-house gas production for small breweries can be positive within 1-3 years, depending on your current gas consumption. With your own nitrogen generator, you can save up to 90% on your gas costs compared to purchased CO₂. Besides direct cost savings, in-house gas production also offers operational advantages such as supply security, quality improvement, and process control. The exact payback period depends on your specific situation, including your consumption volume, current costs, and the chosen installation.
What does investing in in-house gas production for breweries involve?
Investing in in-house gas production means that as a brewery, you purchase a system that allows you to produce nitrogen or CO₂ yourself instead of buying these gases from external suppliers. A nitrogen generator is the most common system for breweries in this regard.
With your own nitrogen production, you can largely replace CO₂ for various applications in the brewing process, including:
- Transferring beer between tanks
- Pressurizing lines and tanks
- Creating a protective atmosphere to prevent oxidation
- Cleaning tanks and lines
The purity of produced nitrogen can be adjusted from 95% to 99.9999%, depending on your specific needs. For breweries, a purity of 99.99% (100 ppm O₂) is ideal to guarantee optimal process conditions and minimize oxidation.
What direct cost savings does in-house gas production provide?
The direct cost savings of in-house gas production are significant and form the basis for a positive ROI. By investing in your own nitrogen generator, you can save up to 90% on your gas costs compared to purchased CO₂.
The main direct cost savings are:
- Elimination of costs for renting gas cylinders or tanks
- No more transportation costs for gas delivery
- Lower price per cubic meter of gas (only electricity costs)
- No delivery costs, handling costs, or administrative costs
- No unexpected price increases from gas suppliers
A medium-sized brewery that uses multiple tanks of CO₂ weekly can save thousands of euros annually. Especially in times of rising energy prices, producing your own nitrogen offers a stable and predictable cost structure.
How do you calculate the payback period of an in-house gas installation?
To calculate the payback period of a gas installation, you need to compare the initial investment against the annual savings. The payback period is the point at which your cumulative savings exceed the purchase costs.
The formula for a simple ROI calculation is:
Payback period (in years) = Initial investment ÷ Annual savings
In this calculation, you take into account:
- Purchase costs of the installation including assembly
- Current annual costs for purchased gas (including rent, transport, etc.)
- Operational costs of in-house production (mainly electricity)
- Maintenance costs of the installation
For most small to medium-sized breweries, the payback period is between 1 and 3 years, depending on the consumption volume. The higher your current gas consumption, the faster the investment pays for itself.
Which indirect benefits influence the return?
Besides the direct cost savings, there are various indirect benefits that positively influence the return but are not always included in a standard ROI calculation:
Supply security is an important advantage – you are no longer dependent on external suppliers and don’t have to worry about supply problems or empty CO₂ tanks during crucial production moments. This prevents production delays and the associated costs.
Other indirect benefits are:
- Improved quality of your beer through consistent gas supply and less oxidation
- Complete control over the brewing process and timing
- Flexibility to scale up production without worrying about gas supply
- Reduced CO₂ footprint by eliminating transport
- Safety benefits: less handling of heavy gas cylinders and reduced risk of leakages
These indirect benefits translate into a smoother production process, higher product quality, and ultimately a stronger market position for your brewery.
What are important considerations when choosing a gas production system?
When selecting a gas production system for your brewery, several factors are important that influence the long-term ROI:
The production capacity must match your current and future consumption. An installation that’s too small can lead to capacity problems during growth, while an installation that’s too large brings unnecessarily high investment costs.
Other important considerations are:
- Energy consumption: choose an energy-efficient system to minimize operational costs
- Purity level: determine what purity is needed for your specific applications
- Reliability: choose proven technology with minimal downtime
- Ease of maintenance: systems that are easy to maintain lower the total cost of ownership
- Scalability: possibility to expand the system as your brewery grows
- Space requirements: compact systems are ideal for smaller breweries with limited space
It’s important to choose a system that is fully aligned with the specific situation of your brewery, both in terms of consumption patterns and the layout of your business premises.
A careful analysis of your current gas consumption and future needs is essential for making the right choice. By investing in a customized system that perfectly matches your specific brewing process, you maximize both direct and indirect returns. Do you need help determining the right solution for your brewery or would you like a detailed ROI calculation for your situation? Then contact us for personal advice.
