Don’t Forget About Operating Cost: How To Calculate Return On Investment

If you have a stock portfolio, or even a retirement account, you’ve likely heard the term “return on investment.” It basically tells you how hard your money is working for you, and, the higher, the better.

The term is also used to determine the financial benefits associated with the use of more efficient products than you’re using right now:

  • The cost of operating industrial pumps, air compressors, and a variety of industrial rotating equipment, can be greatly reduced by using variable frequency drive systems that sense the demand and change the motor’s speed (and hence power consumption) accordingly.  These systems are not cheap, but the reduction in operating costs is often quite noticeable.
  • At home, installing energy efficient windows (spoiler alert: your builder probably used the cheapest ones he could find…mine sure did) or upgrading appliances & HVAC can cost a pretty penny, but you’ll also see your electric bill go down.

EXAIR Corporation has a worldwide reputation for providing highly efficient compressed air products for industry.  Our Engineering Department has a company-wide reputation for being data fanatics…which is key to allowing us to provide our customers with ample information to make the best choices to optimize your use of your compressed air.

It’s not hard at all to calculate your potential savings from the use of an engineered compressed air product, assuming you know how much air your current device is using.  If not, we can tell you if you can send it in for Efficiency Lab testing (free and fast; call me to find out more.)  Here’s an example for a VERY typical situation: replacing an open copper tube blow off with an EXAIR Super Air Nozzle:

  • A 1/4″ copper tube uses 33 SCFM @80psig
  • A Model 1100 Super Air Nozzle uses 14 SCFM @80psig

33 SCFM X 60 min/hour X 8 hours/day X 5 days/week X 52 weeks/year = 4,118,400 SCF

14 SCFM X 60 min/hour X 8 hours/day X 5 days/week X 52 weeks/year = 1,747,200 SCF

4,118,400 – 1,747,200 = 2,371,200 Standard Cubic Feet of compressed air savings

If you know your facility’s cost of compressed air generation, you can calculate the monetary savings.  If not, we can get a good estimate via a thumbrule used by the U.S. Department of Energy that says it typically costs $0.25 to generate 1,000 SCF of compressed air:

2,371,200 SCF X $0.25 ÷ 1,000 SCF = $592.80 annual monetary savings

In 2019, the cost of a Model 1100 Zinc Aluminum Super Air Nozzle is $41.00.  Daily savings (not counting weekends) is:

$592.80 ÷ 260 days (5 days/week X 52 weeks/year) = $2.28 daily savings

Meaning the payoff time for the $41.00 investment in the Model 1100 is:

$41.00 ÷ $2.28 = 17.9 days

Or…just over three weeks.  Now that I’ve shown you the math, I’d like to introduce you to the EXAIR Cost Savings Calculator.  Just enter the data, and it’ll check your math (because I know you’re going to do the math anyway, just like I would.)  It even does the ROI for you too.

Engineered solutions (like EXAIR Intelligent Compressed Air Products) are the efficient, quiet, and safe choice. Does the one on the right look familiar?  It’s literally the example I used for the above calculations.

If you’d like to find out more about how – and how fast – EXAIR Intelligent Compressed Air Products can pay off for you, give me a call.

Russ Bowman
Application Engineer
EXAIR Corporation
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Video Blog: How To Calculate Air Consumption At A Pressure Other Than Published Values

The below video shows how to calculate the air consumption when operating at any pressure.

If you want to discuss efficient compressed air use or any of EXAIR’s engineered compressed air products, give us a call or email.  We would enjoy hearing from you!

Steve Harrison
Application Engineer
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How to Calculate SCFM (Volume) When Operating at Any Pressure

If you need to operate at a different pressure because you require less or more force or simply operate at a different line pressure, this formula will allow you to determine the volume of air being consumed by any device.

Volume Formula

Using the EXAIR 1100 Super Air Nozzle as our example:

1100

Lets first consider the volume of the 1100 Super Air Nozzle at a higher than published pressure.  As shown in the formula and calculations it is simply the ratio of gauge pressure + atmospheric divided by the published pressure + atmospheric and then multiply the dividend by the published volume.  So as we do the math we solve for 17.69 SCFM @ 105 PSIG from a device that was  shown consume 14 SCFM @ 80 PSIG.

higher

Now lets consider the volume at a lower than published pressure.  As shown it is simply the ratio of gauge pressure + atmospheric divided by the published pressure + atmospheric and then multiply the dividend by the published volume.  So as we do the math we solve for 11.04 SCFM @ 60 PSIG from a device that was shown to consume 14 SCFM @ 80 PSIG.

lower

When you are looking for expert advice on safe, quiet and efficient point of use compressed air products give us a call.  Experience the EXAIR difference first hand and receive the great customer service, products and attention you deserve!  We would enjoy hearing from you.

Steve Harrison
Application Engineer
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Consider these Variables When Choosing Compressed Air Pipe Size

Here on the EXAIR blog we discuss pressure drops, correct plumbing, pipe sizing, and friction losses within your piping system from time to time.   We will generally even give recommendations on what size piping to use.  These are the variables that you will want to consider when selecting a piping size that will suit your need and give the ability to expand if needed.

The variables to know for a new piping run are as follows.

  • Flow Rate (SCFM) of demand side (products needing the supplied compressed air)
  • System Pressure (psig) – Safe operating pressure that will account for pressure drops.
  • Minimum Operating Pressure Allowed (psig) – Lowest pressure permitted by any demand side point of use product.
  • Total Length of Piping System (feet)
  • Piping Cost ($)
  • Installation Cost ($)
  • Operational Hours ( hr.)
  • Electical Costs ($/kwh)
  • Project Life (years) – Is there a planned expansion?

An equation can be used to calculate the diameter of pipe required for a known flow rate and allowable pressure drop.   The equation is shown below.

A = (144 x Q x Pa) / (V x 60 x (Pd + Pa)
Where:
A = Cross-Sectional are of the pipe bore. (sq. in.).
Q = Flow rate (cubic ft. / min of free air)
Pa = Prevailing atmospheric absolute pressure (psia)
Pd  = Compressor discharge gauge pressure (psig)
V = Design pipe velocity ( ft/sec)

If all of these variables are not known, there are also reference charts which will eliminate the variables needed to total flow rate required for the system, as well as the total length of the piping. The chart shown below was taken from EXAIR’s Knowledge Base.

Piping
Airflow Through 1/4″ Shed. 40 Pipe

Once the piping size is selected to meet the needs of the system the future potential of expansion should be taken into account and anticipated for.   If no expansion is planned, simply take your length of pipe and start looking at your cost per foot and installation costs.    If expansions are planned and known, consider supplying the equipment now and accounting for it if the additional capital expenditure is acceptable at this point.

The benefits to having properly sized compressed air lines for the entire facility and for the long term expansion goals makes life easier.   When production is increased, or when new machinery is added there is not a need to re-engineer the entire system in order to get enough capacity to that last machine.   If the main compressed air system is undersized then optimal performance for the facility will never be achieved.   By not taking the above variables into consideration or just using what is cheapest is simply setting the system up for failure and inefficiencies.   All of these considerations lead to an optimized compressed air system which leads to a sustainable utility.

Brian Farno
Application Engineer Manager
BrianFarno@EXAIR.com
@EXAIR_BF

Calculating Air Volume for Cooling

Motores_en_el_robot
Robot motor in need of cooling

 

dims
Accompanying information about motor in need of cooling

Usually, when discussing application solutions we can make recommendations for proper product based on experience, empirical test data, and application parameters.  Sometimes, though, we need to take things just a little further and aim to dial in the recommended solution before any testing ever occurs.

I recently had an exercise in this, involving the need to cool the robot motor shown in the photo above.  This motor, existing in two forms (one weighing 23kg and the other weighing 25kg) is currently operating, creating heat, and registering a temperature of 90°C.  The desired operating temperature is 60°C, and we can safely assume an ambient temp. no higher than 35-40°C.

The questions posed to me were:  “Which product should be used to cool this motor?  And, how do you know?”  So, I took a certain degree of liberty (though not much) in considering the motor in question is comprised of copper windings, and these windings comprise the total weight of the motor.

Considering this, our knowns for this application were:

Weight:                              23kg and 25kg

Material:                            Copper

Starting temp:                   90°C

Ending temp:                    60°C

 

What we didn’t know was:

Specific heat of copper:                  (determined to be 0.385 Joules/g°C)

Amount of airflow to cool this motor by 30°C:                     XXX cubic feet per minute

 

This airflow was determined using the process shown below, and the resulting calculations shown below.

heat load calc process
Process to calculate the required airflow in a cooling application

 

heatcalcs
The calculations used to determine the required airflow in this application

 

Super Air Amplifier Performance Specs
Performance specifications of our Super Air Amplifiers

The end result was confirmation that EXAIR model 120022, our 2” Super Air Amplifier, can use just 15.5 SCFM of compressed air at 80 PSIG to produce an airflow to cool this motor.  And, thanks to the skills of the team here at EXAIR we have the numbers to back up that claim.

If you have an application with a similar need and think we may be able to help, contact an EXAIR Application Engineer.

Lee Evans
Application Engineer
LeeEvans@EXAIR.com
@EXAIR_LE

Calculating Compressed Air Cost & Savings Made Easy

If you have ever looked through our catalog, website, blog, twitter feeds, or even our Facebook page, you will see that we can almost always put a dollar amount behind the amount of compressed air you saved by installing EXAIR’s Intelligent Compressed Air Products.   No matter which platform we use to deliver the message, we use the same value for the cost of compressed air which is $.25 per 1,000 Standard Cubic Feet of compressed air. This value is derived from average commercial and industrial energy costs nationwide, if you are on either coast this value may increase slightly. On the positive side, if your cost for compressed air is a bit more, installing an EXAIR product will increase your savings.

So where does this number come from?   I can tell you this much, we didn’t let the marketing department or anyone in Accounting make it up.   This is a number that the Engineering department has deemed feasible and is accurate.

To calculate the amount we first look to what the cost per kilowatt hour is you pay for energy.  Then we will need to know what the compressor shaft horsepower  of the compressor is, plus the run time percentage, the percentage at full-load, and the motor efficiency.

If you don’t have all of these values, no worries.   We can get fairly close by using the industry accepted standard mentioned above, or use some other general standards if all you know is the cost of your electricity.

The way to calculate the cost of compressed air is not an intense mathematical equation like you might think.  The best part is, you don’t even have to worry about doing any of the math shown below because you can contact us and we can work through it for you.

If you prefer to have us compare your current compressed air blow off or application method to one of our engineered products, we can do that AND provide you a report which includes side by side performance comparisons (volume of flow, noise, force) and dollar savings. This refers to our free Efficiency Lab service.

EXAIR's Efficiency Lab is a free service to all US customers.
EXAIR’s Efficiency Lab is a free service to all US customers.

If you already know how much air you are using, you can use the Air Savings Calculators (USD or Euro) within our website’s knowledge base. Just plug in the numbers (EXAIR product data is found on our website or just contact us) and receive air savings per minute, hour, day and year. We also present a simple ROI payback time in days.

Now, back to the math behind our calculation.
Cost ($) =
(bhp) x (0.746) x (#of operating hours) x ($/kWh) x (% time) x ( % full load bhp)
——————————————————————————————————————————
Motor Efficiency

Where:
bhp
— Compressor shaft horsepower (generally higher than motor nameplate Hp)
0.746 – conversion between hp and KW
Percent Time — percentage of time running at this operating level
Percent full-load bhp — bhp as percentage of full load bhp at this operating level
Motor Efficiency — motor efficiency at this operating level

For an average facility here in the Midwest $0.25/1,000 SCF of compressed air is accurate.   If you would like to attempt the calculation and or share with us your findings, please reach out to us.   If you need help, we are happy to assist.

Brian Farno
Application Engineer Manager
BrianFarno@EXAIR.com
@EXAIR_BF

 

Where Does 25 Cents For 1,000 Standard Cubic Feet Of Air Come From?

Wasting compressed air 2

Being an Application Engineer at EXAIR you tend to do a good amount of return on investment (ROI) calculations.   This is mainly to tell customers just how fast installing an EXAIR product on their system is going to pay its purchase price back and start saving them money.

In order to do these calculations there are several variables we must know.   The list is below.

  • Cost of EXAIR Product (This is an easy one for us to know.)
  • EXAIR Product Consumption (Another easy one!)
  • Current Product Consumption (If this is an unknown, we will test it for free!)
  • Cost of Compressed Air / 1,000 SCF (This is the most common unknown.)

With these four variables we can calculate the amount of air and the amount of money the EXAIR product will save over an existing non-engineered blowoff.   Let me address the two variables which have to come from you, the customer.

Current Product Consumption – If this value is not known please don’t guess at it.  We offer a free service which we refer to as our Efficiency Lab where you send us in your existing blowoff device and we will test it for force flow and noise level.   If you don’t know what pressure you are operating the piece at we will help you find out how to get that and then we will test our products at the same pressures.   This way you get a true apple to apples comparison.   Then, once we are done testing, you will get a recommendation from us in a formal report as to what EXAIR product will best replace your existing product.  Then we will pay for return shipping of your blowoff device back to you. So, if you don’t know how much air you are currently using then give us a call.  We will figure it out for you.

Efficiency Lab
The EXAIR Efficiency Lab is FREE!

Cost of Compressed Air/ 1,000 SCF – This is more often than not, the unknown variable in the equation.  The good news is there is a general standard assumption of twenty-five cents per 1,000 Standard Cubic Feet of compressed air.   This works out to be around 8 cents per kW/hr.  So even if you don’t know what you pay to compress the air, if you know what you are paying per kilowatt hour for your energy then we can calculate within reason what it costs for you to generate your compressed air. For reference, 8 cents per kilowatt-hour falls between the average US cost per kilowatt hour for commercial end-users (10.7/kWh) and industrial end-users (6.9/kWh).*

The best part of all is…EXAIR has a calculator available right on our website which provides air and dollar savings per minute, hour day and year as well as a payback in days for the EXAIR product purchase. On top of that, any step along the way that you aren’t sure of, we will help you out for free, even testing your product!

In case you would like to see the math, the formula used is below.

Basic Equation To Go From Cost Per kiloWatt Hour to Cost Per 1,000 Standard Cubic Feet of Compressed Air
Basic equation to go from Cost Per kiloWatt Hour to Cost Per 1,000 Standard Cubic Feet of Compressed Air

Brian Farno
Application Engineer Manager
BrianFarno@EXAIR.com
@EXAIR_BF

*latest U.S. EIA report here