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Sample Cost Benefit Analysis PSA Nitrogen Generator

CAPACITY : 10 NM3/h (Oxygen Content 0.5 %)

COMPRESSED AIR REQUIRED : 28 CFM (FAD) (Power required: 5 KW)

A. NITROGEN FROM CYLINDER :

Landed cost of nitrogen based on Rs 175/- per cylinder (Rs.25/- per NM³).

B. NITROGEN FROM GENERATOR :
Cost / NM 3 (Basis: 4800 hours/annum i.e. 16 hours/day, 300 days per year)

Power Cost: 0.50 KWH @ Rs.8/- per KWH Rs. 4.00
Interest on total capital cost (15% on Rs.10,00,000/-) Rs. 3.15
Maintenance (including nominal spares) cost @ 3 % of capital cost 3% of capital cost. Rs. 0.65
Total Cost Rs. 7.80

SAVINGS :

Savings per annum Difference in cost / NM³ x 50NM/³hr x 4800
17.20 x 10 NM³/hr x 4800 = Rs.8,25,000/-
Pay-back period 15 months (based on two shifts operation)

Note : The pay-back period will decrease if you have a three shifts operation.

ADDITIONAL BENEFITS:

(a) Continuous online O2 measurement is available in our Generator, which is not so in case of cylinders.
(b) Elimination of accident risk likely due to handling of Nitrogen cylinders as well as possibility of excess O2 in cylinders.
(c) Tax savings due to depreciation.