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CASE STUDY

Medical device manufacturing

Expanding onsite nitrogen generation to cut manufacturing costs

BEPC supported a multi-phase nitrogen optimization program that reduced annual operating costs, lowered liquid nitrogen trucking dependency, and expanded manufacturing capacity for a medical-device production site.

Industry
Medical Device Manufacturing
Service
Facilities Engineering / Capital Project Management
Project type
Utility infrastructure expansion
Geography
San Angelo, Texas
Expanding onsite nitrogen generation to cut manufacturing costs

$3.2M

Annual operating-cost reduction after expansion

90%

Reduction in liquid nitrogen trucking costs

55%

Reduction in nitrogen cost per manufactured unit

The challenge

The site relied heavily on delivered liquid nitrogen, creating significant transportation costs and limiting support for future production growth. The existing onsite generation system could not meet projected manufacturing demand while maintaining cost targets.

Objectives

  • Reduce annual nitrogen operating costs
  • Increase onsite nitrogen generation capacity
  • Reduce dependency on liquid nitrogen deliveries
  • Support higher production volume with improved unit economics

BEPC's role

BEPC supported the planning and execution of the nitrogen optimization initiative, coordinating capital planning, engineering, vendors, construction planning, schedule management, commissioning planning, and financial benefit tracking.

Scope & approach

Negotiated liquid nitrogen pricing reduction before plant startup
Coordinated engineering design across electrical, civil, and process needs
Supported capital approvals, procurement, permitting, and construction planning
Planned commissioning and startup for the added onsite nitrogen generation capacity

The program was sequenced in two phases: first capturing immediate savings through pricing negotiation, then expanding onsite generation with a leased Air Products 40HPN plant and coordinated infrastructure work.

Outcomes

The project transformed the facility's nitrogen supply strategy by shifting from heavy delivered-liquid reliance toward expanded onsite generation. Annual operating cost dropped from $6.6M to $3.4M, monthly trucking cost fell from $451K to $45K, and nitrogen cost per unit improved while annual production volume increased.

Metric

Annual nitrogen operating cost

Baseline

$6.6M/year

Result

$3.4M/year

Change

$3.2M annual reduction

Why it matters

Improved manufacturing cost structure

Metric

Liquid nitrogen trucking cost

Baseline

$451K/month

Result

$45K/month

Change

Approximately 90% reduction

Why it matters

Lower logistics dependency and supply risk

Metric

Nitrogen cost per unit

Baseline

$0.029/unit

Result

$0.013/unit

Change

55% reduction

Why it matters

Better unit economics while volume increased

Visual evidence

Industrial utility room with piping, equipment, and controlled facility infrastructure
Onsite nitrogen-generation infrastructure representing the expanded utility strategy.
Executive dashboard visual showing anonymized nitrogen cost and capacity improvements
Executive cost-and-capacity visual for the operating-cost reduction story.

Trust & references

The numbers tell the story: nitrogen operating cost went from $6.6M to $3.4M a year and trucking from $451K to $45K a month. BEPC coordinated capital planning, vendors, and commissioning so the savings arrived on the schedule we promised our leadership.

Director of Facilities Engineering - Medical-device manufacturer (name withheld)

Partners & standards

Air ProductsFacilities EngineeringOperationsFinanceProcurementConstruction contractors

Last reviewed: July 2026

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