The Real Cost of 99.999% Nitrogen by State and Country: Powered by Absstem’s Proprietary ROI Savings Calculator

Introduction

“How much does 99.999% nitrogen cost?” has no single answer, because the running cost of a PSA nitrogen generator is almost entirely electricity, and electricity prices vary widely between Indian states and between countries. The same generator making the same Grade 5 nitrogen can cost half as much to run in one place as in another.

This article gives you a simple formula, a cost table for every common Indian industrial tariff, a comparison across ten countries, and a worked example from the free Absstem ROI calculator so you can work out your own figure.

The Formula

The running cost of PSA nitrogen is (1):

Cost per Nm³ = Energy used per Nm³ (kWh/Nm³) × Your power tariff (₹/kWh)

At 99.999% purity, Absstem’s published planning figure is 1.06 kWh per Nm³ (1)(2). The actual figure for a given plant depends on its size and design. In the calculator example later in this article, a 57 Nm³/hr plant works out to about 0.77 kWh per Nm³. We show both so you can see the range.

Cost of 99.999% Nitrogen in India, by Tariff

Industrial electricity tariffs in India typically fall between about ₹5 and ₹9 per kWh, depending on the state and on whether you are an HT (high-tension) or LT (low-tension) consumer (3). Find your landed tariff on your electricity bill and read across:

Table 1: Power cost of 99.999% PSA nitrogen at different industrial tariffs (Absstem’s Proprietary ROI Savings Calculator)

Even at ₹12 per kWh, PSA Grade 5 nitrogen costs less than delivered liquid nitrogen, which typically costs ₹13–25 per Nm³ in India before tank rental (4).

How to find your state’s real tariff

The rate in your state’s tariff order is not the whole story. Your landed tariff is your total electricity bill divided by the kWh used, and it includes:

• Energy charge: the per-kWh rate in your state’s tariff order for your category and voltage.
• Demand or fixed charge: a monthly charge per kVA of contract demand. Spread over the kWh used, it adds more per kWh in plants that run fewer hours.
• Fuel and power purchase cost adjustments: surcharges that change during the year.
• Electricity duty and cesses: set by each state. For example, Maharashtra levies about 9.3% on the energy charge for HT industry, Tamil Nadu about 6%, and Karnataka about 6 paise per kWh (5).
• Rebates: for example for HT supply, load factor or power factor.

Because these items differ between states and change every year, the most accurate number is always your own bill: total amount ÷ total kWh. Use that figure in Table 1 or in the calculator.

Worked Example: A 50 Nm³/hr Grade 5 User

We ran a typical case through the free Absstem ROI calculator (PSA vs Liquid): a plant using 50 Nm³/hr of 99.999% nitrogen (1,200 Nm³ a day), currently buying liquid nitrogen at ₹18 per Nm³ with a tank rental of ₹50,000 a month, at a power tariff of ₹8 per kWh.

Figure 1: PSA vs Liquid calculator: liquid nitrogen ₹6,98,000 a month vs PSA ₹2,27,831 a month at 99.999%

Table 2: Monthly cost of 50 Nm³/hr of 99.999% nitrogen – liquid supply vs PSA (Absstem’s Proprietary ROI Savings Calculator)

At this saving, the payback period is simply your plant price divided by ₹4.7 lakh a month:

Table 3: Payback period at different plant prices for the example above (plant prices are illustrations, not quotes)

The saving changes with your tariff. At ₹6 per kWh, the PSA running cost falls to about ₹1.72 lakh a month; at ₹10 per kWh it rises to about ₹2.83 lakh, still well under half the cost of liquid supply in this example.

Cost of 99.999% Nitrogen by Country

Industrial electricity prices differ even more between countries. Using average industrial prices reported for 2024–25 (6), the power cost of on-site 99.999% nitrogen at 1.06 kWh/Nm³ is:

Figure 2: Power cost of on-site 99.999% nitrogen by country (industrial electricity prices 2024–25)

Table 4: Power cost of 99.999% PSA nitrogen by country (6)

A plant in the UK pays about three times as much per Nm³ of Grade 5 nitrogen as the same plant in India. That makes generator efficiency even more valuable in high-tariff countries: a design that saves 10% of air saves 10% of a much larger bill.

Three Ways to Cut the Cost of Grade 5 Nitrogen

1. Check the purity you really need. If the process only needs 99.99%, the power cost falls from 1.06 to 0.60 kWh per Nm³ (2).
2. Compare generators on kWh per Nm³ at your purity. Ask every supplier for the compressor kW and guaranteed flow at 99.999%, in writing (7).
3. Use power-saving mode for variable demand. A generator that turns down with demand avoids running the compressor flat out for half-empty demand (7).

Internal Resources – Next Steps

• Absstem’s proprietary ROI Savings Calculator
• nGEN – PSA Industrial Nitrogen Generator
• Myth vs Reality: Grade 5 Nitrogen
• High-Purity PSA Nitrogen (99.999%+): The Engineering Guide

Consult Us

For PSA oxygen and nitrogen generators sized to your plant, contact us:

• Email: info@absstem.com
• Phone: 1800 547 0506 (toll-free)
• Website: absstem.com

References

1. Absstem Technologies. (2025). Myth vs Reality: Grade 5 Nitrogen.
2. Absstem Technologies. (2024). Understanding Nitrogen Purity in PSA Nitrogen Generators.
3. Voltflow. (2026). Electricity Rates in India by State 2026.
4. Absstem Technologies. (2025). Comparison of the Cost of Nitrogen Gas from Different Sources.
5. Terra Insight. (2026). Electricity Duty and State Cesses Reconciliation India.
6. R.H. Nuttall. (2025). Industrial Electricity Prices in Leading Economies – 2025 by Country (IEA, EIA, CEA and National Data).
7. Absstem Technologies. (2024). How to Choose a Good PSA Oxygen or Nitrogen Generator.