jalvarez:
Knowing only what you've given us, I would not use a Nitrogen source to "dilute the H2 content down to the point where the mixture doesn't ignite. I would, instead, recommend that a small flare be used to ignite and burn the H2, producing a non-contaminating flue gas of pure water vapor.
The reasons I would avoid a "dilution" system are:
1) I suspect it will result as more expensive; the instrumentation requirements will, I believe, be more expensive than a flare;
2) You will need proven and reliable instruments to ensure that the resultant mixture is truly non-combustible; and these instruments will need maintenance and testing periodically;
3) H2 is a very flammable and potentially hazardous compound, but it has its benign side: it burns easily and very environmentally-friendly to produce only water vapor;
4) The controls on a small flare are much simpler and easier to operate and maintain - especially if it is only a vent that occurs from time-to-time and not on a steady basis.
5) When you hold your preliminary HazOp you will inevitably come to the situation where you have to address the scenario where you are venting the H2 and the supply of N2 gives out. This means you are going to have to ensure that the N2 supply is backed up or "fail-safe". You don't have this situation with a flare system.
6) Let's not forget the operating costs: N2 is an expensive utility to have on site; usually it has to be stored as a cryogen liquid with an "across-the-fence" supply contract with outside sources. A flare system doesn't need these type of supply costs - it only needs atmospheric air as an oxidizer.
A 16" and a 20" vent are a huge vent size! You don't state it, but I suspect the H2 is not pure. Otherwise, it represents a huge waste. I also suspect there is more basic data that you are holding back and for that reason I can't offer any other comments or advice. But based on the simple data you've furnished, a flare application is what I would opt for - not a dilution application.
I hope these comments are of some help.
Art Montemayor
Spring, TX