Published: 07/04/2026
How Breweries Can Protect Production From CO₂ Shortages with On‑Site Nitrogen Generation
In recent years, breweries have been facing the consequences of CO₂ shortages and its rising costs – and things aren’t about to improve anytime soon. In some cases, it has even forced microbreweries out of business due to the knock-on issues. Production schedules are becoming harder to manage, deliveries are less predictable, and costs are steadily climbing as supply tightens.
Pair this with already stretched margins due to rising energy bills, alongside the increasing cost of ingredients, and it’s no wonder that many breweries are now considering closing their doors.
As this uncertainty continues, breweries are looking for alternatives to CO₂ to reduce risk. Now, brewery owners are taking back control of gas supply with on-site nitrogen generation.
Why are CO₂ shortages affecting breweries so hard?
CO₂ is involved throughout the brewing process, which is why shortages are being felt almost immediately on the production floor. It’s used for flushing oxygen out of tanks before they’re filled, right through to keeping kegs properly pressurised for storage and transport. It also plays a key role in packaging lines, particularly when beer is being bottled or canned. And finally, it helps move liquid through pipelines as it travels between different stages of production.
It’s no surprise that, as it affects so many parts of the process, the disruption to CO₂ supply quickly creates wider issues. What might seem like a small delay can ripple across the entire operation, forcing breweries to slow things down or stop production altogether.
How can breweries avoid the rising cost of CO₂?
For many breweries, CO₂ has always been a necessity to carry out operations. But, relying on external suppliers is becoming too risky, especially as it’s also used across several other industries, such as food production and healthcare. Now, the CO₂ market is becoming far too competitive for breweries to contend with – therefore, it’s time to seek an alternative.
So, what happens now? Many breweries are now moving over to nitrogen. This gas can be used in just over two-thirds of brewery applications, which eases reliance on external CO₂ supply. Over time, this shift to nitrogen [LINK TO NEW BLOG] can bring a greater sense of stability. Costs become more predictable, and supply is almost guaranteed.
An on-site nitrogen generator works by taking in compressed air and separating the nitrogen from the other gases. This is typically done using technologies like pressure swing adsorption (PSA) or membrane separation, both of which are designed to strip away oxygen and leave a high-purity nitrogen supply ready for use.
Why is on-site nitrogen generation the brewery industry’s best backup gas?
Nitrogen is already a familiar part of many brewing setups and can be used across several stages of brewing production. These include:
- Tank purging: Nitrogen is used to flush oxygen out of vessels to maintain a protective layer above the beer and prevent oxidation.
- Keg pressurisation: Used to maintain pressure without dissolving into the beer.
- Cleaning: Helps push cleaning solutions through the system without introducing contaminants that could affect the next batch.
- Packaging: Used to displace oxygen in bottles and cans before sealing to extend shelf life.
The benefits of breweries switching to on-site nitrogen
Some of the major benefits of switching to on-site nitrogen include:
Greater control over supply
Switching to on-site nitrogen generation gives breweries full control over their gas supply. Currently, they’re heavily reliant on external CO₂ providers, which is causing major issues, such as increasing costs and high competition between industries. On the other hand, nitrogen is produced on demand and therefore removes uncertainty around lead times and availability.
More predictable costs
One of the biggest pressures breweries are facing right now is the unpredictable cost of CO₂. Prices can shift quickly depending on supply and wider market conditions, which is leaving breweries in an extremely volatile situation. However, by bringing nitrogen generation in-house, uncertainty around budgeting is greatly reduced.
You’ll no longer be forced to rely on external pricing and, in turn, can gain a much more controllable cost structure. What’s more, the return on the nitrogen generator investment will be recovered quickly, due to nitrogen being cheaper to reduce than others on the market.
Enhanced operational efficiency
With a constant supply of nitrogen available, brewery production lines can run without severe delays. There’s no need to pause production due to gas shortages, meaning that efficiency is boosted drastically and profit margins are increased.
Improves the company’s carbon footprint
From a sustainability point of view, generating nitrogen on-site is a positive step towards a greener workplace. Traditional gas supply relies on regular deliveries, often involving tankers travelling long distances to transport CO₂ to breweries. By producing nitrogen in-house, carbon emissions are drastically reduced.
Better product quality
For breweries producing at scale, a reliable nitrogen supply is crucial. When working with several tanks or packaging lines simultaneously, even minor differences in gas flow or availability can affect quality. On-site nitrogen systems provide a controlled supply that allows breweries to standardise processes and prevent spoiled batches.
The real-world impact that breweries can expect from nitrogen
On-site nitrogen generators use a brewery’s existing compressed air system to extract nitrogen from the air, providing a constant supply wherever it’s needed within the brewery.
Costs become more predictable and can be lower over time compared to buying bulk CO₂. Operations also become much more efficient, with faster tank turnaround and smoother workflow across brewing and packaging processes.
Perhaps most importantly, though, breweries gain greater independence from the fluctuations of the global CO₂ market. Breweries, therefore, have the confidence to continue with production, regardless of any situations that may arise within global markets.
Nitrogen generation for breweries: What Air Supply Manchester offers
Air Supply Manchester offer a range of Parker nitrogen generators designed specifically to meet the demands of modern breweries. These systems can be tailor-made to each business, ensuring the right capacity and integration with existing compressed air infrastructure.
By implementing an on-site nitrogen solution, breweries can pivot away from unpredictable CO₂ supply chains and protect their production from ongoing global market unpredictability. Get in touch with the team at Air Supply Manchester today to enquire about our state-of-the-art nitrogen generators.