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3 year cost analysis - Nitrogen gas delivery vs on demand

Example application 1

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 breakdown the costs associated with ordering 13793 cylinders:

Typical costs associated with ordering 13793 cylinders

Costs 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

Costs Year 1 Year 2 Year 3 Total
Equipment cost $128,837 - - $128,837
Cost of delivery $8500 - - $8500
Installation $9500 - - $9500
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

Example application 2

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 LN2

Costs Year 1 Year 2 Year 3 Total
Liquid nitrogen cost (L) $76,556 $76,556 $76,556 $229,668
Dewar/ Vessle rental $5,000 $5,000 $5,000 $15000
Cost of delivery ($834/month) $10,000 $10,000 $1,000 $21,000
O2 monitoring $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

Costs Year 1 Year 2 Year 3 Total
Equipment cost $128,837 - - $128,837
Cost of delivery $8500 - - $8500
Installation $9500 - - $9500
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
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