The Impressive ROI of an Engineered Air Nozzle

You may have asked…why should I switch over to an engineered air nozzle if my system already works? Or…How can air nozzles be much different?

Manufacturing has always been an advocate for cost savings, where they even have job positions solely focused on cost savings. Return on Investment (ROI) is a metric they look toward to help make good decisions for cost savings.  The term is used to determine the financial benefits associated with the use of more efficient products or processes compared to what you are currently using. This is like looking at your homes heating costs and then changing out to energy efficient windows and better insulation. The upfront cost might be high but the amount of money you will save over time is worth it.

Model 1100 Super Air Nozzles can save compressed air dollars and increase safety

But how is ROI calculated? It is very simple to calculate out your potential savings of using one of EXAIR’s Intelligent Engineered Compressed Air Products. If you would rather not do the calculations out yourself then we can do it for you by sending the item in question to our Efficiency Lab Testing. The Efficiency Lab Testing is a free service that we offer to show you the possible savings by switching to one of our products.

The following is a simple ROI  calculation for replacing open blowoffs with an EXAIR Super Air Nozzle:

  • ¼” Copper Pipe consumes 33 SCFM at 80 psig (denoted below as CP)
  • A Model 1100 ¼” Super Air Nozzle can be used to replace and only uses 14 SCFM at 80 psig (denoted below as EP)

Calculation:

(CP air consumption) * (60 min/hr) * (8 hr/day) * (5 days/week) * (52 weeks/year) = SCF used per year for Copper Pipe  

(33) * (60) * (8) * (5) * (52) = 4,118,400 SCF

(EP air consumption) * (60 min/hr) * (8 hr/day) * (5 days/week) * (52 weeks/year) = SCF used per year for EXAIR Product  

               (14) * (60) * (8) * (5) * (52) = 1,747,200 SCF

Air Savings:

SCF used per year for Copper Pipe – SCF used per year for EXAIR Product = SCF Savings

               4,118,400 SCF – 1,747,200 SCF = 2,371,200 SCF in savings

If you know the facilities cost to generate 1,000 SCF of compressed air you can calculate out how much this will cost you would save. If not, you can us $0.25 to generate 1,000 SCF which is the value used by the U.S. Department of Energy to estimate costs.

Yearly Savings:

                (SCF Saved) * (Cost / 1000 SCF) = Yearly Savings

                                (2,371,200 SCF) * ($0.25 / 1000 SCF) = $592.80 annual Savings

With the simple investment of $42 (as of date published) you can calculate out the time it will take to pay off the unit.

Time Until payoff:

                (Yearly Savings) / (5 days/week * 52 weeks/year) = Daily Savings

                                ($592.80/year) / (5 days/week * 52 weeks/year) = $2.28 per day

                (Cost of EXAIR Unit) / (Daily Savings) = Days until product has been paid off

                                ($42) / ($2.28/day) = 17.9 days  

As you can see it doesn’t have to take long for the nozzle to pay for itself, and then continue to contribute toward your bottom line. 

If you have any questions about compressed air systems or want more information on any of EXAIR’s products, give us a call, we have a team of Application Engineers ready to answer your questions and recommend a solution for your applications.

Cody Biehle
Application Engineer
EXAIR Corporation
Visit us on the Web
Follow me on Twitter
Like us on Facebook

Opportunities to Save On Compressed Air

Since air compressors use a lot of electricity to make compressed air, it is important to use the compressed air as efficiently as possible.  EXAIR has six simple steps to optimize your compressed air system.  (Click HERE to read).  Following these steps will help you to cut your overhead costs and improve your bottom line.  In this blog, I will cover a few tips that can really help you to save compressed air.

To start, what is an air compressor and why does it cost so much in electricity?  There are two types of air compressors, positive displacement and dynamic.  The core components for these air compressors is an electric motor that spins a shaft.  Like with many mechanical devices, there are different efficiencies.  Typically, an air compressor can put out anywhere from 3 SCFM per horsepower to 5 SCFM per horsepower.  (EXAIR settles on 4 SCFM/hp as an average for cost calculations.)  Equation 1 shows you how to calculate the cost to run your air compressor.

Equation 1:

Cost = hp * 0.746 * hours * rate / (motor efficiency)

where:

Cost – US$

hp – horsepower of motor

0.746 – conversion KW/hp

hours – running time

rate – cost for electricity, US$/KWh

motor efficiency – average for an electric motor is 95%.

As an example, a manufacturing plant operates a 100 HP air compressor in their facility.  The cycle time for the air compressor is roughly 60%.  To calculate the hours of running time per year, I used 250 days/year at 16 hours/day.  So operating hours equal 250 * 16 * 0.60 = 2,400 hours per year.  The electrical rate for this facility is $0.08/KWh. With these factors, the annual cost to run the air compressor can be calculated by Equation 1:

Cost = 100hp * 0.746 KW/hp * 2,400hr * $0.08/KWh / 0.95 = $15,077 per year in just electrical costs.

There are two major things that will rob compressed air from your system and cost you much money.  The first is leaks in the distribution system, and the second is inefficient blow-off devices.   To address leaks, EXAIR offers an Ultrasonic Leak Detector.  The Ultrasonic Leak Detector can find hidden leaks to fix. That quiet little hissing sound from the pipe lines is costing your company.

A University did a study to find the percentage of air leaks in a typical manufacturing plant.  For a poorly maintained system, they found on average that 30% of the compressor capacity is lost through air leaks.  Majority of companies do not have a leak preventative program; so, majority of the companies fall under the “poorly maintained system”.  To put a dollar value on it, a leak that you cannot physically hear can cost you as much as $130/year.  That is just for one inaudible leak in hundreds of feet of compressed air lines.  Or if we take the University study, the manufacturing plant above is wasting $15,077 * 30% = $4,523 per year.

The other area to check is air consumption.  A simple place to check is your blow-off stations.  Here we can decide how wasteful they can be.  With values of 4 SCFM/hp and an electrical rate of $0.08/KWh (refence figures above), the cost to make compressed air is $0.25 per 1000 ft3 of air.

One of the worst culprits for inefficient air usage is open pipe blow-offs.  This would also include cheap air guns, drilled holes in pipes, and tubes.  These devices are very inefficient for compressed air usage and can cost you a lot of money.  As a comparison, a 1/8” NPT pipe versus an EXAIR Mini Super Air Nozzle.  (Reference below).  As you can see, by just adding the EXAIR nozzle to the end of one pipe, the company was able to save $1,872 per year.  That is some real savings.

 By following the Six Steps to optimize your compressed air system, you can cut your energy consumption, improve pneumatic efficiencies, and save yourself money.  With the added information above, you can focus on the big contributors of waste.  If you would like to find more opportunities to save compressed air, you can contact an Application Engineer at EXAIR.  We will be happy to help.

John Ball
Application Engineer
Email: johnball@exair.com
Twitter: @EXAIR_jb

EXAIR’s Return on Investment For One Engineered Air Nozzle is Amazing!

Return on Investment (ROI) is a measure of the gain (preferably) or loss generated relative to the amount of money that was invested.  ROI is typically expressed as a percentage and is generally used for financial decisions, examining the profitability of a company, or comparing different investments.  It can also be used to evaluate a project or process improvement to decide whether spending money on a project makes sense.  The formula is shown below-

ROI
ROI Calculation
  • A negative ROI says the project would result in an overall loss of money
  • An ROI at zero is neither a loss or gain scenario
  • A positive ROI is a beneficial result, and the larger the value the greater the gain
1100group
Our catalog publishes most products’ performance and specification data for a compressed air supply pressure of 80psig.

Example – installing a Super Air Nozzles (14 SCFM compressed air consumption) in place of 1/4″ open pipe (33 SCFM of air consumption consumption) .  Using the Cost Savings Calculator on the EXAIR website, model 1100 nozzle will save $1,710 in energy costs. The model 1100 nozzle costs $42, assuming a $5 compression fitting and $45 in labor to install, the result is a Cost of Investment of $92.00. The ROI calculation for Year one is-

ROI2

ROI = 1,759% – a very large and positive value.  Payback time is only 13 working days!

If you have questions regarding ROI and need help in determining the gain and cost from invest values for a project that includes an EXAIR Intelligent Compressed Air® Product, feel free to contact EXAIR and myself or one of our Application Engineers can help you determine the best solution.

Jordan Shouse
Application Engineer

Send me an email
Find us on the Web 
Like us on Facebook
Twitter: @EXAIR_JS

Why Start a Leak Prevention Program?

All compressed air systems will have some amount of leakage. It is a good idea to set up a Leak Prevention Program.  Keeping the leakage losses to a minimum will save on compressed air generation costs, and reduce compressor operation time which can extend its life and lower maintenance costs.

The Compressed Air Challenge estimates an individual compressed air leak can cost thousands of dollars per year when using $0.07/kWh.

  • 1/16″ diameter hole in excess of $700/year
  • 1/8″ hole in excess of $2900/year
  • 1/4″ hole in excess of $11,735 per year

There are generally two types of leak prevention programs:

  • Leak Tag type programs
  • Seek-and-Repair type programs

Of the two types, the easiest would be the Seek-and-Repair method.  It involves finding leaks and then repairing them immediately. For the Leak Tag method, a leak is identified, tagged, and then logged for repair at the next opportune time.

A successful Leak Prevention Program consists of several important components:

  • Document your Starting Compressed Air Use – knowing the initial compressed air usage will allow for comparison after the program has been followed for measured improvement.
  • Establishment of initial leak loss – See this blog for more details.
  • Determine the cost of air leaks – One of the most important components of the program. The cost of leaks can be used to track the savings as well as promote the importance of the program. Also a tool to obtain the needed resources to perform the program.
  • Find the leaks – Leaks can be found using many methods.  Most common is the use of an Ultrasonic Leak Detector, like the EXAIR Model 9061.  See this blog for more details. An inexpensive handheld meter will locate a leak and indicate the size of the leak.

    Model 9061
    Model 9061
  • Record the leaks – Note the location and type, its size, and estimated cost. Leak tags can be used, but a master leak list is best.  Under Seek-and-Repair type, leaks should still be noted in order to track the number and effectiveness of the program.
  • Plan to repairs leaks – Make this a priority and prioritize the leaks. Typically fix the biggest leaks first, unless operations prevent access to these leaks until a suitable time.
  • Record the repairs – By putting a cost with each leak and keeping track of the total savings, it is possible to provide proof of the program effectiveness and garner additional support for keeping the program going. Also, it is possible to find trends and recurring problems that will need a more permanent solution.
  • Compare and publish results – Comparing the original baseline to the current system results will provide a measure of the effectiveness of the program and the calculate a cost savings. The results are to be shared with management to validate the program and ensure the program will continue.
  • Repeat As Needed – If the results are not satisfactory, perform the process again. Also, new leaks can develop, so a periodic review should be performed to achieve and maintain maximum system efficiency.

An effective compressed air system leak prevention and repair program is critical in sustaining the efficiency, reliability, and cost effectiveness of an compressed air system.

If you have questions about a Leak Prevention Program or any of the 16 different EXAIR Intelligent Compressed Air® Product lines, feel free to contact EXAIR and myself or any of our Application Engineers can help you determine the best solution.

Jordan Shouse
Application Engineer
Send me an email
Find us on the Web 
Like us on Facebook
Twitter: @EXAIR_JS