My expectation is this:
The RAF was experimenting with Nitrous Oxide on the Mk XIV Spitfire. The note Mike William's posted indicate that there was interest in using NOX not only above the aircrafts full throttle height but at low altitude. The problem being that improvements above 150PN fuel were unlikely and that seemingly the Griffon could take a much higher PN fuel. NOX was seen as a way of increasing the knock rating of the mixture.
In Luftwaffe usage GM-1 (Goering Mixture 1, cryogenic nitrous oxide) was used
above the engines full throttle height (where the engine could take the full unthrottled throttled force of the supercharger) whereas MW50 (water methanol) injection was applied below the engines full throttle height. Late war Me 109K4, Fw 190A9, Fw 190D9 had a tail tank of around 115-130 litres that was to carry either extra fuel (either B4 or C3), GM-1 or MW50 depending on mission and availability. Only production/delivery issues prevented the delivery of the plumbing though two Fw 190D9 were flown, in service, with GM-1 in the tanks.
There is nothing to prevent us from using nitrous oxide at low altitude so long as the same power limits are observed to prevent bearing damage and to not exceed thermal limits as were imposed on use of MW50 (ADI injection in allied terminology). It was just more convenient and cheaper to use MW50 for low altitude and GM-1/Nitrous for high altitude. The DB605DB/DC went from about 1450hp on B4 to 1800hp on B4+MW50. So long as the nitrous was used judiciously and max power kept below the 1800hp certified for MW50 the engine should be fine. I rather suspect nitrous was kinder and less corrosive and as the RAF papers noted it relieved the supercharger of having to supply the power for over boosting.
I do not see it a problem to apply Nitrous Oxide to the Spitfire XIV. There was a tail tank after the pilots seat I believe it was 44 gallons and that it was considered only suitable for ferrying as it upset the centre of gravity too much for good handing. 44 gallons of fuel weights about 130kg or 285 pounds. That's more than the 160lbs night fighter Mosquito were using. I'm sure that the Mk XIV would have coped with less than half that amount of nitrous, say 140lbs with little effect on handling. The Night fighter mosquitos were getting results from only 160lbs.
The Griffon clearly still had reserve and as was noted Nitrous Oxide could be used to relieve the power draw on the supercharger substantially and prevent pre ignition.
The RAF had the problem of potentially having to deal with flying bombs at low altitude and to get an intercept on say an Ar 234 reconnaissance jet. In such a situation the nitrous could both dramatically increase climb rate (and burning of any handling issues during medium altitude and speed.)
The Ta 152H had both M50 and Nitrous and could use them concurrently. Obviously since the RAF had a 150PN fuel they could more easily avoid water injection. They probably desired 160PN fuel but that was unlikely to be made available in quantity.
Below is the 2015 Volkswaggon Tiguan people mover used by moms to drop of children at school and go shopping at supermarkets. It's 1.4L TSi engine has a specific output of 100hp/Litre on 95 (or less) RON with lean mixture thus handsomely exceeding the performance of the Merlin or Griffon. That's equal to the Merlin producing 2600hp on 95 octane.
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