Estimating the Total Cost of Compressed Air

It is important to know the cost of compressed air at your facility.  Most people think that compressed air is free, but it is most certainly not.  Because of the expense, compressed air is considered to be a fourth utility in manufacturing plants.  In this blog, I will show you how to calculate the cost to make compressed air.  Then you can use this information to determine the need for Intelligent Compressed Air® products.

There are two types of air compressors, positive displacement and dynamic.  The core construction for both is an electric motor that spins a shaft.  Positive displacement types use the energy from the motor and the shaft to change the volume in an area, like a piston in a reciprocating compressor or like rotors in a rotary compressor.  The dynamic types use the energy from the motor and the shaft to create a velocity energy with an impeller.  (You can read more about air compressors HERE).  For electric motors, the power is described either in kilowatts (KW) or horsepower (hp).  As a unit of conversion, there are 0.746 KW in 1 hp.  The electric companies charge at a rate of kilowatt-hour (KWh).  So, we can determine the energy cost to spin the electric motors.  If your air compressor has a unit of horsepower, or hp, you can use Equation 1:

Equation 1:

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

where:

hp – horsepower of motor

0.746 – conversion to KW

hours – running time

rate – cost for electricity, KWh

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

If the air compressor motor is rated in kilowatts, or KW, then the above equation can become a little simpler, as seen in Equation 2:

Equation 2:

KW * hours * rate / (motor efficiency)

where:

KW – Kilowatts of motor

hours – running time

rate – cost for electricity, KWh

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

As an example, a manufacturing plant operates 250 day a year with 8-hour shifts.  The cycle time for the air compressor is roughly 50% on and off.  To calculate the hours of running time, we have 250 days at 8 hours/day with a 50% duty cycle, or 250 * 8 * 0.50 = 1,000 hours of running per year.  The air compressor that they have is a 100 hp rotary screw.  The electrical rate for this facility is at $0.08/KWh. With these factors, the annual cost can be calculated by Equation 1:

100hp * 0.746 KW/hp * 1,000hr * $0.08/KWh / 0.95 = $6,282 per year.

In both equations, you can substitute your information to see what you actually pay to make compressed air each year at your facility.

The type of air compressor can help in the amount of compressed air that can be produced by the electric motor.  Generally, the production rate can be expressed in different ways, but I like to use cubic feet per minute per horsepower, or CFM/hp.

The positive displacement types have different values depending on how efficient the design.  For a single-acting piston type air compressor, the amount of air is between 3.1 to 3.3 CFM/hp.  So, if you have a 10 hp single-acting piston, you can produce between 31 to 33 CFM of compressed air.  For a 10 hp double-acting piston type, it can produce roughly 4.7 to 5.0 CFM/hp.  As you can see, the double-acting air compressor can produce more compressed air at the same horsepower.

The rotary screws are roughly 3.4 to 4.1 CFM/hp.  While the dynamic type of air compressor is roughly 3.7 – 4.7 CFM/hr.  If you know the type of air compressor that you have, you can calculate the amount of compressed air that you can produce per horsepower.  As an average, EXAIR uses 4 CFM/hp of air compressor when speaking with customers who would like to know the general output of their compressor.

With this information, we can estimate the total cost to make compressed air as shown in Equation 3:

Equation 3:

C = 1000 * Rate * 0.746 / (PR * 60)

where:

C – Cost of compressed air ($ per 1000 cubic feet)

1000 – Scalar

Rate – cost of electricity (KWh)

0.746 – conversion hp to KW

PR – Production Rate (CFM/hp)

60 – conversion from minutes to hour

So, if we look at the average of 4 CFM/hp and an average electrical rate of $0.08/KWh, we can use Equation 3 to determine the average cost to make 1000 cubic feet of air.

C = 1000 * $0.08/KWh * 0.746 / (4 CFM/hp * 60) = $0.25/1000ft3.

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

Compressed Air Savings

Making compressed air is expensive, so why would you not use it as efficiently as you can. With the equations above, you can calculate how much you are paying.  You can use this information to make informed decisions and to find the “low hanging fruit” for cost savings.  As in the example above, targeting the blow-off systems in a facility is a fast and easy way to save money.  If you need any help to try and find a way to be more efficient with your compressed air system, please contact an Application Engineer at EXAIR.  We will be happy to assist you.

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

 

Discharge of Air Through an Orifice

My Application Engineer colleagues and I frequently use a handy table, called Discharge of Air Through an Orifice. It is a useful tool to estimate the air flow through an orifice, a leak in a compressed air system, or through a drilled pipe (a series of orifices.) Various tables and online calculators are available. As an engineer, I always want to know the ‘science’ behind such tables, so I can best utilize the data in the manner it was intended.

DischargeThroughAnOrifice

The table is frequently found with values for pressures less than 20 PSI gauge pressure, and those values follow the standard adiabatic formula and will not be reviewed here.  The higher air pressures typically found in compressed air operations are of interest to us.

For air pressures above 15 PSI gauge the discharge is calculated using by the approximate formula as proposed by S.A. Moss. The earliest reference to the work of S.A. Moss goes back to a paper from 1906.  The equation for use in this table is-EquationWhere:
Equation Variables

For the numbers published in the table above, the values were set as follows-

                  C = 1.0,      p1 = gauge pressure + 14.7 lbs/sq. in,    and T1 = 530 °R (same as 70 °F)

The equation calculates the weight of air in lbs per second, and if we divide the result by 0.07494 lbs / cu ft (the density of dry air at 70°F and 14.7 lbs / sq. in. absolute atmospheric pressure) and then multiply by 60 seconds, we get the useful rate of Cubic Feet per Minute.

The table is based on 100% coefficient of flow (C = 1.0)  For well rounded orifices, the use of C = 0.97 is recommended, and for very sharp edges, a value of C = 0.61 can be used.

The table is a handy tool, and an example of how we use it would be to compare the compressed air consumption of a customer configured drilled pipe in comparison to that of the EXAIR Super Air Knife.  Please check out the blog written recently covering an example of this process.

If you would like to talk about the discharge of air through an orifice or any of the EXAIR Intelligent Compressed Air® Products, feel free to contact EXAIR and myself or one of our Application Engineers can help you determine the best solution.

Brian Bergmann
Application Engineer

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Intelligent Compressed Air: How to Develop a Pressure Profile

An important part of operating and maintaining a compressed air system is taking accurate pressure measurements at various points in the compressed air distribution system, and establishing a baseline and monitoring with data logging.  A Pressure Profile is a useful tool to understand and analyze the compressed air system and how it is functioning.

Pressure Profile 1
Sample Pressure Profile

The profile is generated by taking pressure measurements at the various key locations in the system.  The graph begins with the compressor and its range of operating pressures, and continues through the system down to the regulated points of use, such as Air Knives or Safety Air Guns.  It is important to take the measurements simultaneously to get the most accurate data, and typically, the most valuable data is collected during peak usage periods.

By reviewing the Pressure Profile, the areas of greatest drop can be determined and the impact on any potential low pressure issues at the point of use.  As the above example shows, to get a reliable 75 PSIG supply pressure for a device or tool, 105-115 PSIG must be generated, (30-40 PSIG above the required point of use pressure.)  As a rule of thumb, for every 10 PSIG of compressed air generation increase the energy costs increase 5-7.5%

By developing a total understanding of the compressed air system, including the use of tools such as the Pressure Profile, steps to best maximize the performance while reducing costs can be performed.

If you have questions about getting the most from your compressed air system, or would like to talk about any 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.

Brian Bergmann
Application Engineer

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ROI – Return on Investment

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 personal 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

  • 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

Gain from investment could include many factors, such as energy savings, reduced scrap savings, cost per part due to increased throughput savings, and many more.  It is important to analyze the full impact and to truly understand all of the savings that can be realized.

Cost of investment also could have many factors, including the capital cost, installation costs, downtime cost for installation, and others.  The same care should be taken to fully capture the cost of the investment.

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 $37, assuming a $5 compression fitting and $50 in labor to install, the result is a Cost of Investment of $92.00. The ROI calculation for Year 1 is-

ROI2

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

Armed with the knowledge of a high ROI, it should be easier to get projects approved and funded.  Not proceeding with the project costs more than implementing it.

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.

Brian Bergmann
Application Engineer

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