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3 year cost analysis - Nitrogen gas delivery vs on demand gas generation in Australia & New Zealand

  Posted in news on 05th August 2020

ROI for entire manufacturing N2 supply in food and beverage packaging, purging and bottling


Typical usage: 500LPM (30 m3/hr), 99.5% purity, 4hrs per day, 5 days per week (Cylinders)

A nitrogen cylinder delivery contract may seem like the easiest way to manage your budget, however, the purchase of a nitrogen gas generator is a more cost-effective and environmentally friendly way to secure ongoing nitrogen gas supply. While the initial outlay for cylinders is low, contracts are often subject to regular price increases, as well as hidden costs such as regulator maintenance, delivery, fuel and cylinder & pallet rental charges, which can soon add up. A gas generator offers a more economical solution, typically offering savings versus cylinder supply, within the first year of ownership whilst removing repeated cylinder deliveries, reducing your lab’s carbon footprint.

The table below is a break down the costs associated with ordering 13793 cylinders:

Typical costs associated with ordering 13793 cylinders
  Year 1 Year 2 Year 3 Total

Cost of gas (13793 cylinders)

$516,310

$516,310

$516,310

$1,548,930

Rental charge (12 cylinder manpack)

$6,723

$6,723

$6,723

$20,169

Cost of delivery ($292/month)

$3,500

$3,500

$3,500 

$10,500 

Safety/ PPE/ user training

$1,500

$1,500

$1,500

$4,500

Pipework/ regulators

$5,000

N/A

N/A

$5,000

 

Total spend
over 3 years

$1,589,099

 

Compare this with the cost of purchasing Peak Scientific’s nitrogen generator where you can save 86% over 3 years.

 

Typical 3 year costs for a Peak Scientific Gas Generator

Typical 3 year costs for a Peak Scientific Gas Generator
  Year 1 Year 2 Year 3 Total

Equipment cost

$128,837

-

-

$128,837

Cost of Delivery

$8,500

-

-

$8,500

Installation cost

$9,500

-

-

$9,500 

Service/ PM

Warranty

$9,987

$26,725

$36,712

Electricity

$10,434

$10,434

$10,434

$31,302

Labour

$3,500

-

-

$3,500

 

Total spend
over 3 years

$218,351

3 Year cost of ownership: N2 cylinder vs N2 generator

Typical usage: 500LPM (30 m3/hr), 99.5% purity, 4hrs per day, 5 days per week (Liquid N2/Dewar/Bullet)

For labs using liquid nitrogen to supply their facility, there are significant cost savings available when using a nitrogen generator instead. Beyond the cost savings, there are occupational health & safety benefits through removing risk of asphyxiation from a gas leak as well as dangers associated with handling cry cold liquid. With fewer deliveries your lab will benefit from a reduced carbon footprint (consider also the environmental impact of extracting liquid N2) and with gas on-demand, no more waiting for deliveries to arrive, not to mention the space savings a gas generator can provide when compared with on-site liquid N2 storage.

The table below is a break down the costs associated with ordering 87147 litres of liquid N2:

Typical costs associated with ordering 87147 litres of liquid N2
  Year 1 Year 2 Year 3 Total

Liquid N2 cost (L)

$76,556

$76,556

$76,556

$229,668

Dewar/ Vessle rental 

$5,000

$5,000

$5,000

$15,000

Cost of delivery ($834/month)

$10,000

$10,000

$1,000 

$21,000

02 Monotoring

$3,000

$3,000

$3,000

$9,000

Safety/ PPE/ User Training

$2,000

$2,000

$2,000

$6,000

Pipework/ regulators/ installation

$10,000

N/A

N/A

$10,000

 

Total spend
over 3 years

$290,668

 

Compare this with the cost of purchasing Peak Scientific’s nitrogen generator where you can save 25% over 3 years.

 

Typical 3 year costs for a Peak Scientific Gas Generator
  Year 1 Year 2 Year 3 Total

Equipment cost

$128,837

-

-

$128,837

Delivery cost

$8,500

-

-

$8,500

Installation cost

$9,500

-

-

$9,500 

Service/ PM

Warranty

$9,987

$26,725

$36,712

Electricity

$10,434

$10,434

$10,434

$31,302

Labour

$3,500

-

-

$3,500

 

Total spend
over 3 years

$218,351

3 year cost of ownership comparison: Dewars/ liquid N2 vs N2 generator

3 Year Cost Analysis

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Savings Calculator

Majority of industries buy nitrogen gas supplies via nitrogen cylinder packs, others meet their needs through liquid nitrogen dewars, micro-bulk tanks or bulk liquid nitrogen delivery. There is a better, more sustainable & safer option. Reduce the cost of nitrogen gas to your organisation & become self-sufficient. Find out how much you can save with a Peak nitrogen generator system.

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*Figures for illustration purposes only & may vary based on specific requirements. Investment cost amortized over typical generator lifespan.

Liquid/Bottled N2

= value EURO

  • 120 000
  • 100 000
  • 80 000
  • 60 000
  • 40 000
  • 20 000

Typical On-site N2 Generator*

= value EURO

  • 120 000
  • 100 000
  • 80 000
  • 60 000
  • 40 000
  • 20 000

i-Flow Generator*

= value EURO

  • 120 000
  • 100 000
  • 80 000
  • 60 000
  • 40 000
  • 20 000

Liquid/Bottled N2

= value EURO

  • Cost of liquid/bottled N2 :value
  • Transport cost : value
  • Lease equipment : value
  • energy cost : value
  • Investment cost : value
  • Service cost : value
  • Environmental Tax : value
  • Total yearly cost : value

Typical On-site N2 Generator*

= value EURO

  • Cost of liquid/bottled N2 :value
  • Transport cost : value
  • Lease equipment : value
  • energy cost : value
  • Investment cost : value
  • Service cost : value
  • Environmental Tax : value
  • Total yearly cost : value

i-Flow Generator*

= value EURO

  • Cost of liquid/bottled N2 :value
  • Transport cost : value
  • Lease equipment : value
  • energy cost : value
  • Investment cost : value
  • Service cost : value
  • Environmental Tax : value
  • Total yearly cost : value
  • liquid/bottled N2Cost of liquid/bottled N2
  • InvestmentInvestment cost
  • TransportTransport cost
  • ServiceService cost
  • LeaseLease equipment
  • EnvironmentalEnvironmental Tax
  • EnergyEnergy cost