Cutting costs and carbon footprint: The sustainability case for generating nitrogen in-house

The hidden costs of bulk nitrogen supply

Many packaging facilities use nitrogen for purposes like modified atmosphere packaging (MAP), inerting, or preserving product freshness. Traditionally, this nitrogen is delivered as bulk liquid or in cylinders. However, delivered nitrogen comes with a laundry list of hidden costs. Facilities pay not only for the gas itself, but also for transport, cylinder rental, and handling. Worse, a portion of delivered nitrogen often goes to waste – about 10% of the gas in a rented cylinder is typically returned unused, even though you’ve paid for 100%. Likewise, liquid nitrogen in on-site tanks continually evaporates (around 5% loss per day) if not used, leading to significant product loss and inefficiency

In-house nitrogen generation eliminates these inefficiencies. By producing nitrogen on demand, companies can avoid delivery fees and rental costs, and only generate the amount of nitrogen they actually need at the required purity. Multiple sources report substantial savings: on-site nitrogen can be 25–40% less expensive than bulk liquid supply once delivery and diesel fuel costs are factored out.

In fact, industry analyses show that switching to an on-site generator often reduces nitrogen costs by 40% to 80%, with a return on investment achieved in as little as 6 to 18 months. Some companies have seen even greater savings – one packaging manufacturer saved over $500,000 in just 18 months by moving away from bulk liquid nitrogen, fully paying back their generator investment in just over two years. Overall, in-house generation can slash nitrogen supply expenses by half or more, especially when replacing high-purity liquid nitrogen that your process might not even require.

Beyond direct cost savings, on-site generation also reduces less obvious costs like production downtime and administrative overhead. Relying on bulk deliveries means you’re vulnerable to late deliveries or supply shortages that could halt packaging lines. With an in-house system, nitrogen is continuously available – no more unplanned downtime due to empty tanks or delayed truck deliveries.

Moreover, staff no longer need to spend time managing cylinder changeouts or hazard paperwork, and safety risks diminish when high-pressure cylinder handling is eliminated. In short, generating nitrogen in-house gives packaging operations greater control, reliability, and predictability in their supply – all while freeing up budget that was once eaten by gas suppliers’ margins and fees.

Carbon footprint reduction: Cutting emissions with on-site generation

Eliminating bulk nitrogen deliveries isn’t just good for the bottom line – it’s a powerful move for sustainability. Bulk liquid nitrogen has a surprisingly heavy carbon footprint. Consider the journey of delivered nitrogen: first, air is liquefied at an energy-intensive cryogenic plant (a process requiring large amounts of electricity and emitting significant CO2 then the liquid nitrogen is transported by diesel trucks to your facility, and finally it must be stored (with inevitable evaporation losses) and converted back to gas for use.

Every step of that supply chain – liquefaction, trucking, transfer – contributes greenhouse gas emissions. Studies note that *industrial cryogenic plants consume enormous energy and generate high volumes of CO2**, and each delivery can add tens or hundreds of road-miles worth of emissions. In fact, on-site nitrogen generation can be a major step toward sustainability goals: by eliminating an external supply chain, companies both reduce their carbon emissions and cut operating costs as a bonus.

When you generate nitrogen in-house (typically via a Pressure Swing Adsorption (PSA) generator or membrane separation unit), you avoid the bulk of these emissions. There’s no need to liquefy the nitrogen or truck it across the country – the gas is produced at the point of use. This translates into dramatically lower energy usage and CO2 output per unit of nitrogen. For example, PSA systems generally use much less electricity than cryogenic production; one analysis found PSA generation uses roughly 28% less energy than producing liquid nitrogen at an air-separation plant for the same amount of gas.

Likewise, a leading manufacturer reports that on-site systems can save upwards of 50–70% of the energy (and corresponding CO2 emissions) for typical purity levels (95–99.9% N₂) compared to delivered liquid nitrogen. Even at very high purities (99.9%+), on-site production is far more efficient – for many packaging uses, the cryogenic liquid route wastes energy that isn’t needed, since packaging often doesn’t require ultra-high 99.999% purity. By right-sizing purity to the application, on-site generators avoid the “energy penalty” of over-purification, further cutting electricity use and emissions.

Perhaps the most direct environmental benefit is the elimination of trucking emissions. Every nitrogen tanker delivery you no longer need means less diesel fuel burned. Simply by avoiding the liquefaction and transport stage, on-site nitrogen generation not only reduces costs but also “reduces your carbon footprint” by cutting out delivery-related energy use.

For example, one facility found that its regular bulk nitrogen deliveries were adding nearly 7 metric tons of CO2 emissions per year – a footprint entirely erased by switching to an on-site generator. On a larger scale, the impact is even more impressive: industry data suggests that if a significant portion of users moved to on-site generation, millions of tons of CO2 could be avoided annually. These savings contribute directly to companies’ Scope 1 and 3 emissions reductions, helping packaging producers make tangible progress toward climate targets.

Aligning with packaging industry sustainability goals

Sustainability isn’t just a buzzword in packaging – it’s becoming a core business objective. From consumer goods brands pledging to hit net-zero emissions, to regulatory pressures for more efficient manufacturing, packaging companies are under pressure to decarbonize their operations.

In-house nitrogen generation offers a relatively straightforward win on this front. It directly addresses scope 2 emissions (by enabling use of cleaner electricity for nitrogen production) and scope 3 emissions (by removing the need for supplier deliveries). Companies across industries are setting ambitious targets to cut their carbon footprints by improving energy efficiency and adopting cleaner technologies – and on-site gas generation is exactly the kind of innovation that helps achieve those targets in production environments.

Moreover, energy efficiency and cost efficiency often go hand in hand. Sustainable packaging operations aren’t only about recyclable materials; they also involve streamlining processes to use less energy and create less waste.

Nitrogen generators contribute to this by optimizing energy use (producing only the needed gas at the needed purity) and eliminating wasteful practices like over-purchasing gas or venting evaporative losses. This can also aid in regulatory compliance and reporting. For example, companies in the EU and UK now have to monitor and report their greenhouse gas emissions and energy consumption.

By showing a reduction in fuel usage for logistics and improved on-site energy efficiency, a packaging firm can demonstrate compliance with energy efficiency schemes and even potentially earn sustainability certifications or incentives. Additionally, reducing truck traffic for gas deliveries improves site safety and lowers risk, aligning with the industry’s broader commitment to safe and sustainable operations.

Importantly, packaging quality and productivity are never compromised – they’re improved. On-site nitrogen ensures an uninterrupted supply for critical packaging processes like MAP for food products or inerting for chemicals. There’s no risk of a supply contract cap or delivery delay causing product spoilage or compliance issues.

Instead, packagers gain self-sufficiency. This reliability means they can confidently pursue leaner supply chains and just-in-time operations, knowing nitrogen will always be available as needed. In an era where supply chain resilience is top of mind, generating your own nitrogen adds resiliency to packaging production.

Oxywise: Leading the way in in-house nitrogen solutions

As the case for in-house nitrogen generation grows, Oxywise has emerged as a go-to provider for packaging companies seeking to implement this solution. Oxywise’s energy-efficient, PSA-based nitrogen generation systems are engineered to deliver nitrogen reliably, safely, and at the optimal purity for your application.

In practice, this means a consistent, on-demand nitrogen supply tailored to your facility’s needs – whether you’re running high-speed beverage canning, food packaging lines, or specialty packaging for pharmaceuticals. Oxywise systems are built to be dependable, cost-effective, and flexible, providing a steady flow of nitrogen at the required pressure and purity

By producing nitrogen right where you need it, Oxywise helps your operations run smoothly and efficiently. Users can essentially “say goodbye to the challenges of old nitrogen supply methods and welcome a streamlined, cost-saving solution”

What sets Oxywise apart is not just the equipment, but the partnership it offers. Packaging companies often have unique requirements – from space constraints to variable flow demands – and Oxywise specializes in tailored solutions to meet those challenges. The company has a track record in the industry (including the food and beverage packaging sector) and is known for its commitment to innovation and customer success.

Oxywise’s nitrogen generators come with features that maximize efficiency (for instance, advanced flow control and purity monitoring) and minimize energy use, directly translating to lower operating costs for clients. By eliminating the need for regular nitrogen deliveries, reducing associated transport emissions, and cutting handling costs, Oxywise installations create immediate value on both cost and sustainability fronts.

Equally, they improve safety by removing high-pressure cylinders from the workplace and ensure production continuity by avoiding supplier dependency. It’s this comprehensive value proposition – cost savings, carbon reduction, safety, and reliability – that has made Oxywise a leader in in-house gas generation for packaging firms.

Conclusion: A win-win for cost and sustainability

In an environment where every penny counts and every kilogram of CO2 is scrutinized, in-house nitrogen generation stands out as a win-win strategy. Packaging and processing companies no longer need to choose between saving money and doing the right thing for the planet.

By generating nitrogen on-site, they can dramatically lower operating costs while simultaneously reducing emissions – a true alignment of economic and environmental objectives. The data is compelling: companies have saved tens to hundreds of thousands of dollars per year by switching to on-site nitrogen, all while cutting out the fuel consumption and pollution of weekly truck deliveries. These benefits directly support the packaging industry’s drive toward efficiency, sustainability, and resilience in the supply chain.

As you look to the future of your packaging operations, consider the impact that a more sustainable nitrogen supply could have on your business. Cutting costs and carbon footprint need not be mutually exclusive goals – with modern nitrogen generators, they reinforce each other. Whether you’re pursuing corporate carbon targets or simply trying to remove unnecessary costs, the sustainability case for in-house nitrogen is clear. Forward-thinking packaging companies are already reaping the rewards in cost savings, emissions reductions, and improved operational control.

Now is the time to evaluate your nitrogen supply strategy. By partnering with experts like Oxywise, you can assess the feasibility and benefits of on-site generation tailored to your needs. Oxywise’s proven solutions and industry expertise make the transition seamless, turning your nitrogen supply into a competitive advantage. Cutting costs while cutting carbon is a powerful step towards a more sustainable and profitable future for any packaging operation. The question isn’t whether you can afford to generate your own nitrogen – it’s whether you can afford not to. Reach out to Oxywise to explore how in-house nitrogen generation can elevate your packaging sustainability and bottom line.

This content was sponsored by Oxywise.