Are you paying more than you should for nitrogen in your food packaging operations? You’re not alone—a significant portion of the market relies on bulk liquid nitrogen, but that convenience comes at a cost.
While having nitrogen delivered to your facility may seem like an economical business practice, you’re often paying for more than nitrogen alone. Nitrogen itself is expensive and businesses often find they’re paying more on top of that expense in delivery fees, rental charges, and even lost product due to evaporation.
And if you think switching providers is easy, think again. Many suppliers lock businesses into long-term auto-renewing contracts, most requiring at least 12 months' notice before cancellation. If you miss that window, you could be stuck for years.
So how can you escape these costly contracts and unpredictable expenses? By generating nitrogen in-house.
By investing in in-house nitrogen generation, you gain control over your purchasing and significantly reduce gas costs by 50% – 90% for your production and packaging operations. And while nitrogen generator applications can be used in industries such as metal, chemical, electronic assembly, plastics and petrochemicals, tire manufacturing, pharmaceutical and more, the advantages of use in the food and beverage industry are numerous.
Understanding Nitrogen Gas Use in Food Packaging and Production
Nitrogen gas, identified as “N2” in the periodic table of elements, constitutes approximately 78% of the atmosphere and is found in all living cells. Nitrogen can be produced commercially in its liquid or gas state and available to businesses via delivery service or by in-house generation.
Nitrogen plays a major role in your food packaging and production operations.
Food-grade nitrogen displaces oxygen in food packaging, promoting longer shelf life and reduced potential for spoiling. Bacteria love oxygen and uses it to grow. By removing as much oxygen as possible, the bacteria struggle to thrive. However, there are many other reasons for using Nitrogen during the packaging and production process.
Nitrogen also plays a crucial role in food safety and quality. Here’s how different food products benefit from nitrogen during the packaging process.
- Preserving freshness: By replacing oxygen in the package, nitrogen gas prevents food from spoiling due to oxidation.
- Protecting delicate foods: Nitrogen gas creates pressure in packaging, acting as a cushion for foods like berries or leafy greens.
- Maintaining appearance: Nitrogen gas limits oxygen and helps fruit and vegetables maintain vibrant color.
- Snack food packaging: Nitrogen gas keeps snacks like chips, pretzels, and popcorn crispy and prevents crushing.
- Fresh meat packaging: Nitrogen gas inhibits bacterial growth on packaged meat for a longer shelf life.
- Coffee packaging: Nitrogen gas minimizes oxygen exposure, preserving the aroma and flavor of ground coffee.
- Bagged salads and greens: Nitrogen gas helps maintain the crispness and freshness of pre-washed leafy vegetables.
- Bottling: Using nitrogen gas to displace oxygen and extend shelf life of beverages.
The use of nitrogen doesn’t stop there. It can be used during production process as well. Here are just a few of the most common uses:
- Sparging: A technique commonly used in wine production that uses nitrogen to pass through liquids as finely dispersed bubbles to remove oxygen and volatile substances.
- Fluffing: Nitrogen is added to fats and mayonnaise to alter the texture, remove oxygen, and reach desired density.
- Nitrogen injection: Adding nitrogen to create micro-bubbles in creams and desserts.
- Nitrogenating: Using nitrogen gas in the brewing process to produce a long-lasting head and desired texture.
Why Nitrogen Generation Makes Sense for Food Production and Packaging
Nitrogen generators allow businesses to take control of their own nitrogen supply needs and produce nitrogen on demand, a lower-cost and reliable alternative to bulk deliveries.
Nitrogen generation system components can vary depending on customer needs, desired purity levels, and volume required for operations.
Typically, a nitrogen generator can consist of an air compressor to supply compressed air, a filtering system, a separation mechanism—a set of columns filled with carbon molecular sieves (CMS) to filter nitrogen molecules, a nitrogen receiver tank, and a nitrogen outlet allowing purified nitrogen gas to exit the generator at designated output pressure.
When considering a nitrogen generator, the manufacturer should factor desired purity levels (typically 99.5% to 99.9%), flow rates, and both inlet and outlet pressure requirements.
Once installed, maintenance is simple. The nitrogen generator typically only requires routine filter changes and normal service calls on the compressor.
What food & beverage industries can benefit from in-house nitrogen generation?
- Snack and ready-to-eat foods
- Coffee packaging
- Meat and poultry processors
- Wine production
- Breweries and micro-breweries
Key Benefits of Nitrogen Generators for Food Packaging and Production
Food and beverage manufacturers use nitrogen because it is a clean, dry inert gas that displaces oxygen from the production process. While oxygen is an essential gas for all living things, it can speed up food spoilage and create fire hazards in food manufacturing.
Other benefits of onsite nitrogen generation include:
- Extends shelf life of products by replacing oxygen in packaging with nitrogen.
- Prevents oxidation in packaged products.
- Prevents microbial and bacterial growth in packaged products.
- Preserves color, taste, freshness, and texture while reducing the need for additional preservatives.
- Reduces costs associated with waste and recalls.
- Lowers production costs associated with expensive nitrogen delivery.
- Reduces environmental impacts associated with delivered gas cylinders.
- Ensures consistent purity levels for improved product quality.
- Removes risk of combustion or explosion.
- Improves food safety.
Concerned about cost? You may be surprised to learn that investing in an in-house nitrogen generator can pay for itself in as little as twelve to eighteen months.
Compared to bulk deliveries, generating nitrogen onsite is significantly more cost-effective and can be scaled to fit your exact needs. Even better, you’re not at the mercy of nitrogen tank supplier rate hikes and hidden fees. Add in the risks associated with tank deliveries and price volatility, generating your own nitrogen can be a much better solution.
Traditional nitrogen tank suppliers’ expenses can add up quickly. Businesses relying on bulk liquid nitrogen or cylinders pay not only for the gas itself but also for rental fees, delivery charges, environmental surcharges, and administrative costs. And delivery costs are greatly affected by the increase in oil prices. These additional fees can reach thousands of dollars per month, making nitrogen more expensive than expected.
Storage is another expense to consider. The necessary permits, installation, and planning costs associated with storing the tanks should be factored in, such as the cost of a concrete pad that can handle the considerable weight of the tanks and fencing for security and safety concerns.
For example, nitrogen cylinders can cost $1.00 to $2.00 per cubic feet (CCF), which is forty times the production cost. Even bulk liquid nitrogen—often perceived as the most cost-effective option—can have up to 15% loss to boil-off before it’s even used. On top of that, long-term contracts (often lasting three to ten years) can lock businesses into annual price increases of 15% or more.
By switching to an onsite nitrogen generator, businesses eliminate the need for tank rentals, delivery fees, and surcharges, cutting costs by 50% to 90% compared to traditional supply methods. Depending on electricity usage and purity requirements, the average cost of generated nitrogen is much cheaper and averages just $0.07 – $0.12 per CCF.
Without the hassle of long-term contracts or unexpected price hikes, companies can achieve a return on investment in as little as six months to two years—all while maintaining a reliable, cost-efficient nitrogen supply.
Hidden costs of bulk traditional liquid nitrogen can include: (For demonstration purposes only, rates may vary)
- Tank rental fees: As much as $2000 per month.
- Delivery charges: $25 to $75 per month.
- Environmental surcharge: $35 per month.
- Boil off: Up to 15% of liquid nitrogen is vented to atmosphere.
- Annual price increases: 15%.
- Long-term contracts: Average 3-10 year commitment
- Purchasing costs: Invoiced separately for added administrative and invoicing costs.
The cost of having a nitrogen generator installed onsite can be 50% to 90% lower than traditional nitrogen supply.
- Average cost per 100 cubic feet is $0.08 to $0.12, based on electricity usage and N2 purity requirements.
- No need for tank rentals, delivery charges, or environmental surcharges.
- No long-term contracts.
- Return on investment achieved in 6-24 months.
- Low operating and maintenance costs.
Economic value and reliability aren’t our only value propositions - producing your own nitrogen results in a significant reduction in CO2 emissions. Stop overpaying for nitrogen and protect our environment at the same time. Let Diversified Air evaluate your operations and design a cost-saving nitrogen generation system tailored to your business. Contact us today for a consultation.
Why Choose MCE for Nitrogen Generation
You promise your customers high standards of quality, efficiency, and safety. We can help you keep that promise.
When you partner with MCE, industry experts are in your corner— helping you choose a nitrogen generation solution tailored to your needs.
We partner with top-rated manufacturers to ensure a variety of solutions to address diverse needs. Beyond just selling nitrogen generators, compressors, and dryers, we assist with maintenance, repair, and scheduling installation.
We offer:
System Audits and Evaluations: We arrive on site to evaluate and understand your food production and packaging requirements and usage rates. From there, we identify inefficiencies in existing nitrogen systems or packaging lines.
Turnkey Solutions: We’ll suggest fully integrated solutions for installing and upgrading nitrogen generator systems, compressors, and dryers that minimize downtime and fit seamlessly into your workflows.
Preventive Maintenance Programs: We offer regular service to ensure nitrogen generators operate at peak efficiency, reduce risks of downtime, and maintain consistent nitrogen purity levels.
Custom System Design: We collaborate with your team to design nitrogen generation systems to meet specific packaging line requirements for high-volume operations or niche food and beverage packaging needs.
Wide Selection of Inventory and Services: Plus, MCE has access to a wide variety of parts and services you may need in your plant, including pumps, power transmission, hydraulic hose and fittings, valves and actuators, motor repair, and much more.
Switching from bulk nitrogen deliveries to in-house generation gives businesses greater control, significant cost savings and improved efficiency in food and beverage production and packaging. Let us know how we can make nitrogen generation a smart, scalable, and cost-effective solution for you.