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Sample Cost Benefit Analysis PSA Nitrogen Generator

CAPACITY : 2 NM3/h (Oxygen Content 0.01 %)
COMPRESSED AIR REQUIRED : 24 NM3/h at 7 bar (Power required : 5 KW)

A. NITROGEN FROM CYLINDER :

Cost of Nitrogen is Rs. 400/- per cylinder i.e. 57.15 per NM³ plus 10% handling costs works out to Rs.62.85 per NM³.

B. NITROGEN FROM GENERATOR :

Cost / NM³ (Basis : 7200 hours/annum i.e. 24 hours per day, 300 days / year)
Power Cost : 2.5 KWH @ Rs.7/- per KWH Rs. 17.50
Interest on total capital cost (15% on Rs. 6,50,000/-) Rs. 6.75
Maintenance (including nominal spares) cost @
3% of capital cost.
Rs. 1.35
  Rs. 25.60

SAVINGS :

Savings per annum Difference in cost / NM³ x 2 x 7200
37.25 x 2 x 4800 = Rs. 5,36,300/-
Pay-back period 15 months (Based on three shifts operation)