Nitrogen is one of the most widely used industrial gases in manufacturing, processing, packaging, metal fabrication, and energy production. Historically, facilities have relied on bulk liquid nitrogen, dewars, or high-pressure cylinders supplied by third-party suppliers.
However, that model is quickly changing.What Is On-Site Nitrogen Generation?
On-site nitrogen generation systems separate nitrogen from compressed air using one of two primary technologies:
Pressure Swing Absorption (PSA) Nitrogen Generators
PSA systems utilize carbon molecular sieve media to selectively adsorb oxygen molecules while allowing nitrogen to pass through. This process produces high-purity nitrogen suitable for demanding industrial applications.
Typical capabilities:
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Purity ranges up to 99.999% depending on system design
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Flow ranges suitable for small to large industrial demands
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Ideal for applications requiring tight purity control
The high-purity nitrogen produced by PSA systems is ideal for food processing, electronics manufacturing, heat treating, and other operations sensitive to oxygen.
Membrane Nitrogen Generators
Membrane systems use selective permeation through hollow fiber membranes. Oxygen and water vapor diffuse out of the membrane, while nitrogen remains in the product stream.
Typical capabilities:
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Purity ranges generally up to 99.5%
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Scalable for continuous industrial flow
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Fewer moving parts and simple operation
Membrane nitrogen generators are commonly used in blanketing, tire inflation, fire prevention systems, and applications where ultra-high purity is not a requirement.
Why Facilities Are Replacing Bulk Nitrogen Supply with On-Site Generation
Many organizations are transitioning from recurring bulk nitrogen purchases to installing systems that allow for on-site nitrogen generation. Below, we will highlight four key benefits for facilities making this change.
1. Cost Control and Payback
Having nitrogen delivered to your business involves more than just the cost of the gas.
Facilities also pay for:
| • Delivery charges | • Tank or cylinder rental fees |
| • Fuel surcharges | • Hazmat handling |
| • Long-term supply contracts | • Evaporation and vent losses in cryogenic systems |
On-site nitrogen generation turns a recurring operational expense into a manageable utility cost, primarily associated with compressed air and electricity.
- Predictable operating costs
- Reduced vendor dependency
- Elimination of contract escalation risk
- Improved long-term margin stability
2. Elimination of Delivery Logistics Risk
Using supplied bulk nitrogen introduces operational variables that plant teams cannot control, potentially leading to production disruptions.
3. Improved Facility Safety and Reduced Handling Risk
- Oxygen analyzers for monitoring gas purity
- Automated alarms
- Continuous system diagnostics
4. Purity Control and Process Consistency
- Preventing oxidation and chemical breakdown
- Reducing fire and explosion risks
- Displacing moisture to prevent corrosion
- Improve the integrity of welds and laser cuts
- Extending product shelf life
Mechanical wear in these areas can lead to vibration issues, bearing damage, and reliability problems even after a rebuild.
Precision You Can Monitor
Unlike delivered bulk nitrogen supply, which can have variable purity, on-site systems use integrated sensors to monitor performance in real time. If purity levels shift, the system adjusts instantly to protect your line.
This level of control and precision leads to:
- Better product quality and consistency
- Reduced waste and less scrap
- Operation confidence, knowing your gas always meets your exact specs

Expand Capabilities with High-Pressure Nitrogen Skids
Some applications require nitrogen at elevated pressures beyond standard generator output.
Rasmussen Air & Gas Energy engineers high-pressure nitrogen skids designed to integrate with PSA nitrogen generation or membrane systems.
High-pressure nitrogen skid packages can include:
- Boosters
- Storage vessels
- Filtration
- Controls integration
- Safety systems
These high-pressure systems are commonly used in various industries, including oil and gas, pressure testing, laser cutting, and other specialized industrial processes. When designing these systems, it's essential to consider factors such as flow, pressure, duty cycle, and redundancy requirements. This is where engineering expertise plays a crucial role, and Rasmussen Air & Gas Energy can provide the necessary knowledge and support.
Is On-Site Nitrogen Generation the Right Choice for Your Facility?
On-site nitrogen generation is most beneficial when:
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Nitrogen demand is continuous or predictable
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Bulk delivery costs are high
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Downtime risk is unacceptable
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Safety and logistics are significant operational concerns
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Purity control directly impacts product quality
Each facility is unique, and proper sizing of the nitrogen system requires understanding the following:
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Required purity level
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Flow rate (scfh or Nm³/hr)
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Pressure requirements
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Compressed air system capacity
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Redundancy expectations
An engineered approach ensures that your entire air and gas system efficiently supports the plant, rather than disrupting it.
Partner With Experts in Industrial Air and Gas System Engineering
On-site nitrogen generation is not just about installing a generator. It requires integration with your compressed air system, controls strategy, pressure requirements, and long-term operational goals.
Rasmussen Air & Gas Energy offers comprehensive solutions for air and gas. We design and support on-site nitrogen gas systems including:
• PSA nitrogen generators
• Membrane nitrogen generators
• High-pressure nitrogen skids
• Complete system integration with compressed air infrastructure
Our team works with plant managers, engineers, and procurement teams to assess current nitrogen costs, logistics risk, and long-term operational objectives.
If you are considering replacing your bulk nitrogen supply or simply want to understand the economics for your facility better, our team can help you evaluate the opportunity with clarity and precision.
Contact Rasmussen Air & Gas Energy to discuss how on-site nitrogen generation can reduce cost, improve reliability, and put your nitrogen supply fully under your control.
Rasmussen Air and Gas Energy manufactures, rents, sells, and services industrial air compressor systems and compressed gas equipment. We support food and beverage, healthcare, manufacturing, agriculture, and other energy intensive industries with engineered compressed air system design, deployment, and lifecycle solutions that maximize productivity and manage flow for measurable financial performance.
