Rising costs for nitrogen gas and transport: what does this mean for your production process?

Rising energy prices are driving up the cost of nitrogen gas and transport. Companies that depend on external suppliers for their nitrogen supply are seeing the impact directly in their costs. In this blog, you will learn why these price increases are occurring, what they mean for your production process and which solution can structurally reduce your exposure to this uncertainty. Read below how Avilo can help you become less dependent on fluctuating gas and transport prices. 

Why are nitrogen gas prices rising so sharply? 

Nitrogen gas is typically supplied in gas bottles, cylinders or in bulk by tanker truck. Both supply methods are directly linked to energy and fuel prices: 

• Production costs: separating nitrogen from air on an industrial scale requires a considerable amount of energy. Rising energy prices therefore directly affect the price of nitrogen gas. 

• Transport costs: bulk deliveries and cylinder transport depend on fuel prices. When volatility in the energy market continues, these costs can increase even faster than the gas price itself. 

• Limited supply flexibility: companies that depend on external nitrogen deliveries are tied to scheduled delivery times and available stock. If nitrogen demand unexpectedly increases, it may not always be possible to scale up immediately, which can affect the continuity of your production process. 

For companies with a continuous nitrogen requirement, for example in the food industry, laboratories, electronics or oil and gas, this represents a recurring cost that can be difficult to predict. 

What does this mean for your production process? 

A rising gas price is not only a financial issue. It can also affect the continuity of your process: 

• Unpredictable costs make accurate budgeting and quotation more difficult. 

• Dependence on deliveries increases the risk of production downtime when deliveries are delayed or postponed. 

• Tank rental and cylinder management involve additional logistics costs and administration on top of the gas price itself. 

The higher your consumption, the greater the impact of these factors on your total operating costs. 

The solution? On-site nitrogen generation 

Instead of remaining dependent on external deliveries and the associated price fluctuations, more and more companies are choosing to generate their own nitrogen on site. With an on-site nitrogen generator, you continuously produce the quantity and purity of nitrogen your process requires, without relying on transport or external suppliers. 

A nitrogen generator uses membrane technology or PSA technology (Pressure Swing Adsorption) to separate nitrogen directly from ambient air. The generator automatically adjusts its output to your consumption, ensuring that you produce the amount of nitrogen your process requires. 

The benefits at a glance: 

• No dependence on market prices for gas and transport
• Continuous availability, regardless of delivery schedules 
• Set the required nitrogen purity for each application 
• Lower costs per Nm³ for continuous consumption 
• No tank or cylinder rental 
• Fewer logistics activities and less administration 
• More sustainable alternative: fewer transport movements and no energy-intensive transportation or refilling of cylinders 

Avilo offers various systems tailored to the required purity, capacity and application: 

• PSA generators — nitrogen generators based on Pressure Swing Adsorption technology for continuous on-site nitrogen generation with high to very high nitrogen purity. 

• Membrane generators — energy-efficient and low-maintenance systems suitable for purities up to approximately 99.6%. Ideal for MAP packaging and the inerting of tanks and silos. 

• Nitrogen membranes — for companies looking to expand or replace an existing system. 

• Laboratory gas generators — plug-and-play solutions with low-noise generators for higher purities and applications such as LC-MS, GC-MS and TOC analysis. 

• Compressed air and nitrogen buffer tanks — for handling peak demand and maintaining a stable gas supply. 

Our representatives Wijnand, Lars and Rogier will work with you to determine which combination of purity, capacity and technology best suits your process and consumption. 

On-site nitrogen generation with Avilo 

Avilo specialises in nitrogen and compressed air systems and has been advising companies on the right purity, capacity and technology for their processes for more than 25 years. We design, manufacture, install and maintain nitrogen generators tailored to your specific situation, reducing your dependence on fluctuating gas and transport prices. 

Switch before the next price increase 

Every month you continue to rely on external deliveries, you pay a gas price over which you have no control. With your own nitrogen generator from Avilo, you determine your costs, availability and nitrogen purity, both today and in the years ahead. 

Request a no-obligation consultation or cost estimate and discover what an on-site nitrogen generator could mean for your production process and budget.