In the spring of 1999, while students at Iowa State University, founders Thomas (T.J.) Paskach and William (Will) Schroeder invented a new way to flash-freeze ice cream using liquid nitrogen. The “mad scientists” soon discovered their breakthrough invention made better homemade ice cream than they had ever had before.  A year later the company was formed, a patent was pending, and a full-scale, computer-controlled prototype was ready for testing at the 2000 Iowa State Fair.

Nitro Ice Cream became an instant success. The novelty of the process intrigued people to try it once - the incredible texture and flavor brought them back several times with family, friends, even strangers off the street, just to try Nitro Ice Cream!

In 2001, TJ and Will successfully demonstrated the Nitro Freeze process with a second-generation prototype at the Iowa State Fair, the Clay County Fair, and the Tulsa State Fair.  The second-generation prototype implemented several technology advances improving reliability, ease of use, cleaning, and product quality.

In 2002, the concession operation was expanded by adding the Minnesota State Fair.  And the first retail location, a new ice cream shop called the Blue Sky Creamery, opened in Ankeny, Iowa.  Plans were then completed for a new production model Nitro Freeze machine, the NF-3500.  Armed with this new design, the marketing of the machines was launched at the IAAPA trade show in November, in Orlando, Florida.

In 2004, the Blue Sky Creamery Ice Cream Cafe Franchise concept was rolled out and the first franchise store opened in Minnesota. Additional Blue Sky Creamery Ice Cream Café locations have been opened in Roseville, Eden Prairie, and Minneapolis, Minnesota, and West Des Moines, Iowa.  Franchises have also been granted for factory locations in St. Louis, Phoenix, and Atlanta.