Recently, a customer from the United States asked us to estimate the cost of a 5L/hour liquid nitrogen generator. We will use this as an example to explain the process.
The total annual cost of 5L/hour liquid nitrogen generator is approximately $67,245.74
Case Background
The company primarily manufactures mid- to low-end semiconductor chips for consumer electronics such as smartphones and tablets. Their chip production line requires liquid nitrogen during the photolithography and etching processes. They have equipped a 5L/hour liquid nitrogen generator to ensure smooth production. Below are the cost parameters for this generator:
- Equipment cost: $63,428.57 (tax-inclusive factory price).
- Rated total power: 13.3KW.
- Actual power consumption: 12.6KW/h.
- Electricity cost (Washington): Peak rate of $0.165 per kWh, off-peak rate of $0.085 per kWh.
- Annual maintenance cost: $1,340 per year (based on 8,000 operating hours annually; maintenance is every 4,000 hours, and if the machine operates less than 4,000 hours in a year, this cost can be saved).
- Special note: The liquid nitrogen generator can be set to automatically start and stop, utilizing off-peak hours (9:00 p.m. to 7:00 a.m.) to reduce costs. The photovoltaic system’s startup power is considered at 3 times the rated total power, requiring energy storage to ensure stable power supply. Operating power is typically 95% or 90% of the rated total power, as some equipment operates intermittently.
Cost Composition Analysis and Calculation
Equipment Purchase Cost
The equipment cost is a one-time expenditure. The tax-inclusive factory price of the liquid nitrogen generator is $63,428.57, representing the initial investment cost.
Electricity Cost
Assuming the liquid nitrogen generator runs for 6 hours per day, with 4 hours of peak-time operation (e.g., 9:00 a.m. to 11:00 a.m. and 2:00 p.m. to 4:00 p.m. during high-demand periods) and 2 hours of off-peak operation (using the auto-start/stop function at night), the electricity cost is calculated as follows:
Peak-time electricity cost：
- Actual power consumption is 12.6KW/h.
- Peak-time electricity cost is $0.165 per kWh.
- Peak-time operation of 4 hours per day
- Annual peak-time electricity cost
Off-peak electricity cost:
- Off-peak electricity cost is $0.085 per kWh.
- Off-peak operation of 2 hours per day
- Annual off-peak electricity cost
Thus, the total annual electricity cost is:
Maintenance Cost
Since the liquid nitrogen generator requires maintenance every 4,000 hours, and the machine operates for 6 hours per day, the annual operation time is assumed to be：
Based on this, the maintenance cost can be saved for this year, so the maintenance cost is considered as 0 USD.
Total Cost
The total cost is the sum of the equipment purchase cost, electricity cost, and maintenance cost:
Total cost = Equipment cost + Electricity cost + Maintenance cost
= 63,428.57+3,817.17+0=67,245.7463,428.57 + 3,817.17 + 0 = 67,245.74 USD
(for one year, assuming the operation time is less than the maintenance threshold).
Conclusion
Through a detailed analysis and calculation of the costs associated with the 5L/hour liquid nitrogen generator, under the current operating mode and cost parameters, the total annual cost is approximately $67,245.74.
It is important to note that if the operating hours are adjusted, more off-peak electricity periods are utilized, or maintenance costs are incurred due to reaching the required hours, the total cost may change. The company can flexibly adjust the operating strategy of the liquid nitrogen generator based on actual production conditions to optimize cost control further.
For more information, please visit the MINNUO official website.
