Many companies rely on outside suppliers for nitrogen, thinking it’s the easiest and cheapest option. However, there are often hidden costs like delivery fees, rental charges, supply chain problems, and wasted gas. These costs can hurt profits and make operations less efficient, while also making the company dependent on others. Switching to making nitrogen on-site can eliminate these hidden costs and give businesses more control, reliability, and eco-friendly advantages.
(For a full assessment of how much you could be overpaying, consider a Nitrogen Demand Audit to analyze your facility’s actual nitrogen needs.)
The True Cost of Third-Party Nitrogen Supply
Buying nitrogen from others seems simple, but it costs more than just the price of the gas.
- Delivery Costs: Every delivery has extra fees. The farther you are from the supplier, the more you pay. Unexpected costs like fuel price increases or rush orders can also make it more expensive.
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- Example: A facility getting weekly shipments could pay thousands yearly in delivery fees.
- Rental Fees: Suppliers rent tanks and cylinders. The longer you rent, the more you pay.
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- Example: Renting 20 tanks at $50 each per month costs $12,000 a year.
- Extra Purity Costs: Many buy very high purity nitrogen (99.999%) when they don’t need it. Higher purity costs more.
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- Solution: Onsite generation lets you make the exact purity you need, saving money.
- Supply Problems: Relying on others means you’re at risk of:
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- Delivery delays from weather or shortages.
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- Price increases.
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- Contract issues.
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- Example: A food plant with a delay might have to stop production and lose money.
- Gas Waste: Some gas is lost due to
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- Liquid nitrogen evaporation.
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- Gas left in cylinders.
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- Example: Liquid nitrogen tanks can lose up to 10% per week to evaporation.
(For more details on optimizing purity levels, check out our guide to conducting a Nitrogen Demand Audit)
The ROI of Onsite Nitrogen Generation
Making nitrogen on-site removes third-party costs and gives you control.
| Cost Factor | Third-Party Supply | Onsite Nitrogen Generation |
| Delivery Fees | Ongoing costs per shipment | Eliminated |
| Tank/Cylinder Rentals | Monthly rental fees | No rental fees |
| Over-Purification Costs | Paying for higher purity than needed | Adjustable purity control |
| Supply Chain Delays | Dependent on supplier availability | Continuous nitrogen production |
| Gas Waste | Boil-off and residual waste | On-demand production with no loss |
| Long-Term Savings | High recurring costs | ROI typically achieved within 1-2 years |
Key Benefits of Onsite Nitrogen Generation
- Lower Operating Costs, No rental, delivery, or contract fees.
- Consistent Supply, Nitrogen is produced on demand, eliminating shortages.
- Purity Control, Adjust nitrogen purity to match what you need.
- Sustainability, Less waste and no transport emissions.
(For an accurate cost comparison and potential savings, schedule a Nitrogen Demand Audit with CRU Air + Gas.)
Also Read
Everything You Need to Know About Nitrogen Purity Levels
Why On-Site Nitrogen Generation is the Future
On-Site Nitrogen Generators and Rotary Screw Compressors Add Up to Cost Savings and Efficiency Gains
How to Make the Switch to Onsite Nitrogen Generation
If your facility relies on third-party nitrogen supply, here’s how to transition to a cost-effective onsite system:
- Evaluate your Nitrogen Usage
Conduct a nitrogen demand audit to understand how much nitrogen your facility needs at peak usage and find cost-saving opportunities. Learn more in our guide to nitrogen audits.
- Choose the Right Onsite Nitrogen Generator
Pick a nitrogen generator based on flow rate, purity level, and system capacity. Work with a specialist to make sure your system is properly sized for long-term efficiency.
- Install and Optimize your System
We at CRU Air + Gas offer professional installation and system optimization to maximize energy efficiency and ensure seamless nitrogen production.
Stop Overpaying for Nitrogen
Third-party nitrogen has hidden costs. Onsite generation saves money, is reliable, and gives you control. Check your needs with a Nitrogen Demand Audit to see if onsite generation is right for you. Contact CRU Air + Gas to learn more.