Nitrogen is the main element for formation of NOx, if we remove the nitrogen from the air and then, supply to engine, definitely reduce the NOx emission. But it will cost effective or not?
Well, NOx emissions not only depend on the availability of Nitrogen. And it's almost impossible to reduce N2 from air intake in a cost-effective way. The two main reasons that contribute to NOx emissions are 1) temperature 2) availability of oxygen. Most engineers work to make sure there is no localised high temperature thereby reducing NOx. You can keep all these parameters in mind and then go about your research.
The easiest way for addressing NOx emission problem is decreasing the gas temperature in combustion chambers, but the main drawback of this method is a pressure drop which would result in a reduction of generated power. So, we should looking for a solution to maintain the brake power while we decreasing the gas temperature, it sound more cost effectively than removing N2 from the intake air.
Yes, it can be done economically. I researched this about 12-15 years ago in making a membrane to filter out some of the nitrogen. 78% of the combustion process is to do with this inert gas which apart from suppression of pre-ignition, does nothing for the combustion process. Of course you would have to re-design the engine as the combustion process would be closer to a percussion explosion rather than incendiary, which is heat & noise, or wasted energy.