Monday, March 16, 2015

Nitrogen Generators - Payback (ROI) Calculation

 ROI with Nitrogen Generation vs Bulk Liquid Nitrogen
Uncover Cost savings and production growth

What is a Nitrogen Generator? Nitrogen Generators mechanically separate Nitrogen (N2) from compressed air and feed it to a N2 receiver tank for continuous use in a wide range of industrial processes.  Two technologies can be used to accomplish this, membrane and PSA. Membrane N2 Generators are widely used for lower purity and lower flow applications (up to 99+%), however the separation membranes degrade over time requiring replacement, overall limiting the lifespan of the generator.  That lifespan typically ranges between 8-13 years depending upon operating environments and if scheduled maintenance has been completed. PSA N2 Generators can produce N2 at purities from 95-99.999+%, and can remain in service for 20+ years without changing the separation material. Therefore, they are truly the "work horses" of the industrial world when it comes to generating Nitrogen on demand.  

Why Switch Your Nitrogen Gas Source?  Businesses and facilities currently using bulk gas or liquid nitrogen in any of Nitrogen's many useful applications are oftentimes contractually tied to a gas company for their source of N2.  This means that there is a dependence on others to fulfill the critical supply of Nitrogen.  Due to scheduling, delivery, and variances in N2 demands, the process of securing Nitrogen results in many inefficiencies.  The unending monthly gas bills, overage and surplus fees, gas taxes, tank leasing fees, contract management costs, and long term contracts all result in the continual cost of Nitrogen significantly adding up over time.  Therefore, why not eliminate all these problems by generating your own Nitrogen and substantially reducing your overall operating expenses?

How Can a Nitrogen Generator Produce Valuable ROI? By purchasing a South-Tek Nitrogen Gas Generator, you can make your own Nitrogen gas at your facility and put an end to the gas contracts.  Benefits of this investment include: eliminating routine costs and inefficiencies outlined above, producing only the N2 gas you need, when you need it, and at the purity, flow rate and pressure you require.  By working with a nitrogen generator manufacturer, such as South-Tek Systems, you can pinpoint your exact flow and purity requirements in order to size the appropriate system for your application. For further peace of mind, each South-Tek Nitrogen Generator is provided with a Performance Verification Certificate that ensures the equipment meets or exceeds the specification your process demands.

Sample ROI Nitrogen Generator Purchase
Nitrogen Payback Calculation

Input/Useage Data:
Bulk Liquid Nitrogen Usage:
  • Average monthly N2 use: 29,200 CCF
  • Average montly LN2 Cost: $14,260
  • Bulk LN2 Cost per CCF: $0.48 per CCF)
  • N2 Generator Equipment Cost: $170,872
  • Average monthly cost to generate N2: $4,093
  • N2 GEN Cost per CCF:  $0.14 per CCF
  • $KWH: $0.09
Capital Expense Payback Period: 16.8 Months
5 yr Cumulative Savings: $439,128
Cost Per CCF reduced by 71%


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