Published: 07/04/2026
Why Nitrogen Generation Is the Safeguard Businesses Need Against CO₂ Price Rises and Supply Shortages
It’s no secret that when conversations arise around carbon dioxide (CO₂), it’s usually about finding ways to cut emissions. But there’s another factor that’s becoming harder for businesses to ignore: supply. CO₂ is a major asset to everyday operations across industries like food production, healthcare, and manufacturing. And lately, that supply has started to diminish rapidly.
Over the past few years, a series of disruptions has highlighted just how fragile the UK’s CO₂ network is becoming – as much of the supply comes from a very small number of producers. When something goes wrong, shortages can cause widespread issues in just a matter of time.
With this in mind, CO₂ can’t be relied on from external suppliers. But nitrogen generation could be the answer that solves all your problems.
Why are CO₂ prices increasing?
Over the past few months, events in the Middle East have had a serious knock-on effect on the UK’s CO₂ supply chain. As a result, businesses are facing dramatic price increases, rationed supplies and unpredictable delivery delays. For industries that rely on CO₂ daily, this instability has created major operational headaches. UK manufacturers are already reporting the fastest rise in input costs in decades, and it’s not going to slow down anytime soon.
Analysts expect carbon prices to climb further in 2026 as the supply of emissions permits continues to shrink, even doubling by the mid 2030s.
So, what’s the alternative?
Are there CO₂ alternatives?
The good news is that there is an alternative to CO₂ – nitrogen.
Generating nitrogen using compressed air gives businesses a steady supply, helping avoid the stress of unpredictable global CO₂ shortages. For many years, nitrogen bottles would have been delivered to your site. Now, companies are able to obtain a more cost-effective option: on-site nitrogen generators.
How do nitrogen generators work?
If you’re wondering how to generate nitrogen, it’s carried out by a process called Press Swing Adsorption (PSA). PSA systems produce nitrogen by separating it from compressed air. Once purified, the nitrogen is fed directly to your application through a pipeline to create an on-demand supply without relying on stored nitrogen tanks.
The good news is that nitrogen generators connect directly to existing compressed air lines, with minimal retrofit needed. Modular designs, however, allow for scalability, meaning businesses can expand supply as needed without major downtime or infrastructure changes.
Why switch over to nitrogen from CO₂?
There are many benefits as to why companies are now ditching CO₂ and moving over to nitrogen:
- Reliability of supply: Nitrogen is produced on-site and delivered directly to your process, ensuring an on-demand flow without relying on external deliveries or stored tank levels.
- A green alternative: On-site generation reduces transport emissions and reliance on fossil-fuel-based CO₂ production. This helps your business maintain or improve its carbon footprint.
- Better efficiency: Unlike CO₂, nitrogen is produced on demand, ensuring a steady supply for industrial use.
- Huge cost savings: If you’re looking to cut business costs, nitrogen is a much cheaper alternative to CO₂. Plus, it’s far less likely to succumb to price fluctuations and impact your business’s bottom line.
How are nitrogen generation systems actually used?
Nitrogen generators are already in force across a range of industries.
Take the food and beverage sector, for example. Many manufacturers use nitrogen to replace oxygen in packaging. This keeps products fresh for longer and extends shelf life by several months. By installing on-site nitrogen generators, food producers have been able to maintain a constant supply of gas whenever they need it – and it doesn’t just benefit the company, but the customer too. Thanks to this, packaging costs can be slashed, and there are far fewer production delays caused by gas cylinder shortages.
And in electronics manufacturing, nitrogen creates an inert atmosphere during the production of sensitive components, protecting them from oxidation. This results in improved solder quality and fewer defects over time.
Where can I buy an industrial nitrogen generator?
If you’re ready to take control of your gas supply, Air Supply Manchester offer a range of Parker nitrogen generators that can easily replace CO₂ in your operations. This is your opportunity to cut costs and shield your business from the ups and downs in the current global gas market.
Get in touch with our expert team today to find out more about our nitrogen generators and how they could benefit your company.