Delivered nitrogen carries recurring and often hidden costs:

• Recurring charges: Ongoing cylinder rental, delivery, and gas costs.
• Waste: Approximately 10% of delivered nitrogen typically goes unused.
• Safety costs: Handling and storing high-pressure cylinders increases risks.
• Logistics: Managing deliveries consumes valuable time.

For this customer, who used to buy nitrogen in cylinders, delivered nitrogen costs totalled 8,099,700 CZK per year (approximately €324,400/year).

Switching from delivered nitrogen cylinders to an on-site nitrogen generator can transform a company's bottom line. This real-world example from a manufacturer in the Czech Republic shows how investing in an all-in-one nitrogen solution not only reduced their operational costs dramatically but also paid for itself in under a year.

Here’s a closer look at how they made it happen:

Customer profile:

• Nitrogen consumption: 29 Nm³/hour
• Operating hours: 5,586 hours/year
• Estimated annual nitrogen usage: 162,994 Nm³
• Solution installed: PPNG 11 skid HE all-in-one nitrogen generation system

Cost analysis: Delivered nitrogen vs. on-site generation

Delivered nitrogen costs

• Annual delivered nitrogen cost: 8,099,700 CZK (approx. €324,400
• Effective cost per Nm³: 49.69 CZK (approx. €2.00)

On-site generation costs (PPNG 11 Skid HE)

•  Annual electricity cost: 574,280 CZK (approx. €23,000)
• Annual service cost: 309,000 CZK (approx. €12,400)
• Total annual operating cost: 883,280 CZK (approx. €35,300
• Effective generation cost per Nm³: 5.42 CZK (approx. €0.22)

Payback period

• Initial investment: 4,761,428 CZK (approx. €190,500)
• Annual savings: 7,216,420 CZK (approx. €289,100)

Payback period = Initial investment ÷ annual savings
= 4,761,428 ÷ 7,216,420 = 0.66 years = Approximately 8 months

Five-year financial impact
 

Projected savings over five years:

• 36,082,100 CZK (approx. €1,445,500)

Beyond the short payback period, the financial gains continue to accumulate year after year, making the investment exceptionally attractive.

While the financial savings are clear, there are additional ROI factors to consider:

• Increased safety: Reducing the risks associated with handling liquid nitrogen lowers the incidence of workplace accidents, which can further reduce insurance premiums and healthcare costs.
• Operational efficiency: By eliminating the logistical burden of managing nitrogen deliveries, your staff can focus on more critical tasks, thereby increasing overall productivity.
• Reliability and consistency: On-site nitrogen generation ensures a steady and reliable supply, reducing the risk of production downtime due to delayed deliveries or supply chain issues.