Categories
ON-SITE GAS GENERATION

A BUYER’S GUIDE: WHAT TO EVALUATE BEFORE INVESTING IN AN ON-SITE NITROGEN OR OXYGEN GAS GENERATING SYSTEM

Purchasing an on-site gas generating system—whether for nitrogen or oxygen — is a strategic investment that can reduce reliance on delivered gases, cut long-term costs, and improve operational control. However, choosing the right system involves more than comparing prices. Here’s a detailed look at the critical factors you should evaluate to make an informed decision.

IS THE SYSTEM DESIGNED TO MEET YOUR PROCESS REQUIREMENTS AND DOES IT MEET YOUR CURRENT & FUTURE NEEDS?

This is the most important question. The system must reliably deliver the required gas purity, flow rate (SCFM or Nm3/hr), pressure (PSIG or Barg) and dewpoint (Deg C) that your process demands today, while also having the flexibility or capacity to handle any foreseeable increases in demand. Always review detailed technical proposals, including data sheets and performance guarantees, to ensure the system aligns with both your immediate process needs and your future growth plans.

CAN THE SYSTEM FOOTPRINT BE ACCOMMODATED WITHIN YOUR FACILITY?

Space is often a constraint, especially in existing plants. Check:

  • The physical dimensions of the system.
  • Required clearances for maintenance access.

A well-designed system proposal should come with a detailed system P & ID and layout drawing that allows you to visualize integration into your existing facility or help you plan for external infrastructure if required.

WHAT IS THE COST TO BUY THE SYSTEM OUTRIGHT, THE ASSOCIATED SYSTEM ERECTION & INSTALLATION COST, ELECTRICAL SCOPE, INSPECTION REQUIREMENTS IF ANY & COMISSIONING COST?

Look beyond just the base price of the gas generator. A complete on-site system investment should include:

  • The outright purchase cost of the gas generator along with required compressor, dryer, filtration, and storage tanks.
  • System erection & installation costs, including structural work if any, mechanical piping from onsite gas generation system to point of use.
  • Electrical scope, such as power distribution upgrades, cabling, and integration with existing control systems.
  • Any mechanical or electrical inspection requirements that may be mandated by local codes.
  • Commissioning costs, covering final system checks, performance validation, and training for your operations & maintenance team.
HOW POWER EFFICIENT IS THE SYSTEM & SYSTEM’S RUNNING COST?

The largest operating cost over the system’s lifetime is typically power.

Review:

  • Power consumption of the system in kWh(kilowatt-hour). Calculate system running cost based on hours of operation per day and based on energy rates in your area or based on your contract with your energy supplier.

Example running cost calculation:

A 40 HP (30 kW) compressor running 8 hours/day consumes 240 kWh/day.
At $0.12/kWh, that’s $29/day or ~$8,500/year just for electricity.

  • Explore energy-saving features like variable speed drives on air compressors, purge economizers on dryers, or automatic shutdown modes when there is no gas demand for the process.
WHAT IS THE YEARLY MAINTENANCE COST?

Ask for an estimated annual maintenance budget, covering:

  • Filter element replacements & any other system consumables.
  • Lubricants and service kits for air compressors.

A good supplier should give you at least a 2-year maintenance spare cost estimate upfront.

HOW EASY IS THE SYSTEM TO MAINTAIN?
  • Can your internal plant maintenance team handle routine services (filter element changes & replacement of system consumables)?
  • Does it require specialized technicians from the manufacturer for even minor tasks?

Look for systems with simplified designs and clear maintenance instructions.

ARE SPARE PARTS NON-PROPRIETARY AND READILY AVAILABLE?

This is critical for long-term independence and avoiding downtime:

  • Does the system use standard off-the-shelf filters, valves, and controls, or are you locked into buying proprietary parts?
  • How quickly can common wear parts be shipped to you?
ASK FOR A LIST OF RECOMMENDED CRITICAL SPARE PARTS for the system

A reliable supplier should provide you with a recommended list of critical spare parts to keep on hand. This helps ensure that in case of unexpected failures or routine wear, you can minimize downtime.

  • This list typically includes valves, sensors, and control components most subject to wear.
  • Knowing upfront what parts are recommended—and their costs—also helps you plan your spare parts inventory and maintenance budget.

It’s a simple but crucial step to keep your system running reliably and reduce the risk of unplanned shutdowns.

Choosing an on-site gas generating system is more than a product purchase—it’s an operational partnership. By carefully assessing how well the system fits your process specs, space, operating costs, maintenance needs, and long-term support, you’ll ensure a reliable and cost-effective supply of gas for years to come. If you’re planning an on-site gas generation project and want a tailored assessment, reach out to us at Canada Gas Solutions Inc. We specialize in designing turnkey nitrogen, oxygen, and hydrogen systems, ensuring they’re perfectly matched to your facility and process.

Enquire Now