The Cost of Compressed Air

A question that is occasionally asked by our customers to Ash Air is 'what is the cost of compressed air?'  This article looks at the product costs involved with compressed air, as well as minimising the energy cost of compressors and cost allocation. When looking at these factors, we need to realise what causes dropped efficiency of your compressor, leading to increased costs of compressed air. 


  1. Air Leaks - are a common cause of wasted compressed air, infact 10%-30% is wasted through leaks.
  2. Pressure Drop -filters, air dryers, valves, and piping are all in-out systems which cause and create pressure drops. To compensate for pressure drops, you'll find that the compressor will have to be set to a higher pressure than usual, which in turn increases the energy cost.
  3. Pressure to high (Artificial Demand) - this is seen when you use a pressure that is higher that what you really need. If your compressor operates at 8 bar, but only really needs 7, then you'll find that the extra 1 bar isn't actually needed, and if your compressor has leaks at the higher pressure level you will unfortunately end up losing more energy. 
  4. Inefficient air production - assumptions are commonly made that the compressor runs at full load when operating, when really the compressor will sometimes start and stop, running unloaded and fluctuations of pressure and air demand will be evident.

Another point to make is about the power of knowledge - having knowledge of your compressor, its specifications and its suitable operating capabilities will definitely help you on your journey to understanding and recognising when your compressor is functioning well, and when it isn't. Caring for your compressor system, regular servicing and check ups will help you greatly to reduce wasted cost every day of the year. A compressor system that is say, medium sized can amazingly save between $10,000 and $30,000 per year!

Check out our compressor services here


The production costs of compressed air 

The production costs of compressed air can vary. When planning a new investment, it is best to look as far into the future as possible and attempt to assess the impacts of new situations and demands that might affect the compressed air installation. Typical examples include environmental demands, energy-saving demands, increased quality requirements from production and future production expansion investments.

Optimised compressor operations are becoming more important, especially for larger, compressed air-dependent industries. Production will change over time in a developing industry and, consequently, so will compressor operation conditions. It is therefore important that the compressed air supply be based both on current requirements as well as on development plans for the future. Experience shows that an extensive and unbiased analysis of the operating situation will almost always result in improved overall economy.

 

Minimizing the energy cost of compressors

Energy costs are clearly the dominating factor for the installation's overall cost. It is therefore important to focus on finding solutions that comply with demands for performance and quality as well as the demand for efficient energy utilization. The added cost associated with acquiring compressors and other equipment that complies with both of these demands will be perceived over time as a good investment.

 

As energy consumption often represents approx. 80% of the overall cost, care should be taken in selecting the regulation system. The significant difference in the available regulation systems exceeds the significant differences in types of compressor. An ideal situation is when compressor full capacity is precisely matched to the application's air consumption. This frequently occurs in applications. Most types of compressors are supplied with their own on-board control and regulation system, but the addition of equipment for shared control with other compressors in the installation can further improve operating economy.

 

Speed regulation has proven to be a popular regulation method because of its substantial energy-saving potential. Think carefully and allow your application requirements to govern your selection of regulation equipment in order to obtain good results. If only a small amount of compressed air is required during the night and weekends, it may be profitable to install a small compressor adapted to this off-peak requirement.

 

If, for some reason, a particular application needs a different working pressure, this requirement should be analysed to find out whether all compressed air production should be centralised in a compressor central plant, or whether the network should be split up according to the different pressure levels. Sectioning of the compressed air network can also be considered to shut down certain sections during the night and on the weekends, in order to reduce air consumption or to allocate costs internally based on airflow measurements.


 


Cost allocation

Investment costs are a fixed cost that include the purchase price, building infrastructure costs, installation and insurance. The share of the investment cost as a part of the overall cost is determined partly by the selection of the compressed air quality level and partly by the depreciation period and the applicable interest rate. The share of energy costs is determined by annual operating time, the degree of load/unload utilization and the unit energy cost. Additional investments, for example, equipment for energy recovery, offer a direct payoff in the form of reduced operating and maintenance costs.

 

Talk to the team today to see how we can help you minimise costs and maximise efficiency.

Contact Us

Ash Air is here for your business longevity!

Your business performance is what we strive for. Ash Air offers a full range of Chicago Pneumatic and Alup air compressors, tools and on-site solutions. We also provide oil-free compressors and food-grade oil to suit your needs. Ash Air are specialists in vacuum pumps, blowers, and medical gas solutions. Ash Air offers complete quality air solutions as well as advanced piping systems for the performance and efficiency of your compressed air system.

Do you have an idea for our #expertcorner? Let us know!

Useful links:

Air Dryers

Book Your Compressor Service

Who we are and how Ash Air can help your business!

Ash Air has been around in New Zealand since 1979, and we’ve grown into a nationwide company with international support and a reputation for quality and reliability.We look after all things compressed air for your business!

  • Reciprocating, Screw, air compressors
  • Vacuum pumps
  • Nitrogen
  • An extensive line of air treatment components

Ash Air's range of Chicago Pneumatic, Alup, Pneumatech, and Quincy compressors are used extensively around the world in industries ranging from oil and gas to food, automotive and farming, and we bring you these world class compressors here in the land of the long white cloud.Our technicians are compressed air equipment experts and are dedicated to addressing customer needs. Supported by a 13 locations nationwide, Ash Air offers one of the widest selections of compressed air equipment and parts available today in New Zealand.

Reliability and Efficiency

With Ash Air compressors, you can count on reliability and high performance for even the most demanding applications. We focus our efforts on the following:

  • Increasing uptime
  • Reducing unexpected repairs
  • Reducing energy consumption
  • Improving the cleanliness of compressed air


Talk to the team today:  CONTACT US CONTACT US

Read more from our #expertcorner


Using nitrogen is not about fully replacing CO2, but it can reduce their consumption of CO2 by close to 70%. Using nitrogen is about sustainability. Creating your own nitrogen is easy and will reduce the use of a greenhouse gas, which is better for the environment. It will also save you money as early as month one adding that savings to your bottom line. …


A question that is occasionally asked by our customers to Ash Air is 'what is the cost of compressed air?'  This article looks at the product costs involved with compressed air, as well as minimising the energy cost of compressors and cost allocation. When looking at these factors, we need to realise what causes dropped efficiency of your compressor, leading to increased costs of compressed air. …


You may have great fall protection measures in place to keep employees safe when working at height, but what about their co-workers below? Dropped tools and other falling objects are a major hazard – and one that isn’t always fully addressed.  …


Providing a safe working environment for operators is essential, especially when using pneumatic tools and compressed air. If there is a failure in the air network and the hose is not adequately clamped, the resulting whiplash could be devastating. Failure to follow best practice can result in injuries, associated production downtime and decreased productivity. …


A common questions asked is why do I need an air dryer for my compressor? Typically, air compressors produce water, and although the water can be drained, there can still be aerosol and vapour droplets that are present. This is because water cannoet be compressed. Water can damage your compressor by corroding the valves, pipes and machinery controls, which will cost you time and money to resolve. In the long run, the cost of a new compressor is a small price to pay compared to the loss of production that could potentially arise due to water damage in your compressor.





…


Air compressors can fail for an assortment of different reasons: Normal wear and tear, lifespan and age of the unit, poor maintenance, power surge, install issues are just a few the come to mind. Check out this blog to find out our top 7 tips to ensure your compressor is looked after!  …


That cold, rainy, and in some places icey New Zealand winter is upon us, and with the following air compressor tips, your air system will be prepared with the preferred temperatures, despite the weather outside. Regardless of whether or not it actually snows or freezes up where you live, most winterisation service recommendations are also basic, solid maintenance procedures that will help extend the life and operational efficiencies of air compressors regardless of whether you live in Queenstown or Northland. …


If you're wondering what an air compressor actually is, you've come to the right place. Simply, air compressors convert power in to air that is pressurised which is then used to power air tools such as spray guns. Air compressors are used in a wide range of applications, so naturally if you want one that will be designed for spray painting your vehicle, you want a compressor specifically made for spray guns! This way your compressor will be able to provide the right amount of power to perform the job. …


Compressed air plays a fundamental role in industrial activities. Depending on the type of application, the energy cost of producing compressed air can be very high. Below are some tips to save on you compressor bill. …


Air Compressors are essential tools in a variety of industrial settings. No matter what industry you are in having a reliable air compressor can be a crucial part of getting the job done efficiently. However, like an investment, air compressors require upkeep and maintenance, and eventually will need to be upgraded. But how do you know when it’s time to upgrade your air compressor? Here are some things you need to consider. …


When it comes to laser cutting and other industrial processes, the choice of assist gas is crucial in achieving optimal results. Nitrogen and oxygen are commonly utilized as assist gases, each with its own unique properties and applications. Understanding the characteristics of both gases, will help you to make an informed decision to ensure precision, efficiency, and cost-effectiveness in your operations. …


Mobile air compressors are portable, towable compressors particularly useful for applications that suit the construction and roading industry! You'll often see a mobile compressor being used for sandblasting, irrigation blow-outs, and for quarrying tools such as pneumatic block cutters and rock drills.   …


Did you know that Chicago Pneumatic helped man land on the moon? Notice in this photo of the Apollo 11 landing what appear to be "soccer balls" on top of the capsule. They were inflated through a compressor specially developed by Chicago Pneumatic for NASA. …


Your company purchased an air dryer for your compressor, now where should you install it? One of the most common things we see in the industry are air dryers being stored on top of the compressors. Seems like a wasted space not being used on top of the compressor, right? Wrong. …


When using air compressors, there are many variables that are integral to the quality and effectiveness of your compressed air. When dryer air is necessary, being able to constantly and accurately monitor dew points can be a critical factor to your operation. …


Compressed air plays an integral role in breweries both large and small around the world. From start to finish, all details in the brewing process are managed in fine detail and having the right air compressor is no exception. …


We Kiwi's love our Coffee! Coffee, like all other food & beverage products, must go through a preservation process to keep the beans fresh during storage and packaging before they reach the consumer. Coffee that is not properly stored after it is roasted will lose a large amount of carbon dioxide, which lessens its' flavor and speeds up the staling process. One of the most common ways to preserve the freshness of coffee is the use of nitrogen gas. Learn more here: …


Air compressors are helpful for an enormous range of applications such as air filling, packaging, tools, HVAC control, and more! One possible drawback is the amount of electricity they use; air compressors can be a huge drain on energy if used ​inefficiency...  …


We get it, buying an air compressor is a big financial decision. And now we are suggesting that you need two air compressors, not just one. Ask yourself one question- Can your business still run if your air compressor goes down? …


It’s no secret – air compressors are excellent sources of energy. Not only do they power essential manufacturing elements and applications, but the heat generated as a result of the compressed air processes can be used as a byproduct that offsets other energy costs. However, there’s another form of energy that is also a consequence of the air compression process – sound. …


The emergency stop, "e-stop", is for true emergency situations only. When hitting the e-stop, all power is halted from the machine and the unload process isn't achieved. The emergency stop button is intended to help with possibly hazardous situations that are developing. Common conditions of having to use the e-stop is the misuse of the equipment in ways that weren’t intended, predictable failures not addressed or failing to consider all the foreseeable uses of the compressor.
…


We've put together a list of tips for working safely with air compressors in your environment! We recommend that you always read owners manual before running your compressor. The number one cause for repairs and personal injury is improper use. You've got to remember to use eye protection and hearing protection when operating your air compressor and try to avoid using air compressors in a wet area.  …


Air Compressor Installation Tips Installing Your Reliable Air Compressor

So, you've just bought an efficient and reliable ALUP air compressor? Welcome to the world of compressed air. As your partners in compressed air, we will continue to assist you along your journey. We have provided air compressor installation tips to ensure you get the most out of your air compressor.  …


Air dryers remove any condensation from the air compressed by your air compressor. Questions about them? Find answers to the most frequently asked questions here. …


Power tools are a key to productivity in the oil & gas or the metal working industry. Maintenance and production tasks must be carried out efficiently, however intensive use of vibrating power tools, such as grinders, can expose operators... …


Selective soldering with nitrogen is an essential process in the production of printed circuit boards (PCBs). It is used for bonding components to PCBs that could otherwise be damaged if exposed to a lot of heat. Another area of application are mixed-technology circuit boards with layout constraints.  …


Hydrogen is becoming increasingly important as a promising clean energy carrier – especially with a view to a more climate-friendly future. But have you ever wondered what hydrogen actually is and how it is produced? In this article, we look at the basics and technologies used to produce hydrogen and what makes hydrogen a special element. …


Your passion is vinification, ours is air compressors. 

Compressed air accounts for a large amount of energy consumption in the wine production process, especially in the production of grapes. A big part of wine-making is a result of the work of equipment and is dependent on its efficiency. An air compressor should be located in well ventilated, shaded areas, out of direct sunlight. This includes the inlet for the compressed air system which should be located away from heat sources such as the compressed air outlet, refrigeration or air conditioning plant and equipment. …


Cutting, shaping, drilling, and finishing, compressed air is critical for any machine shop. Shops rely heavily on the compressed air system to assist in a variety of operation processes. Commonly the parts produced are used in the machine industry, car industry or even the aircraft industry. A traditional workday in a machine shop requires the use of air compressors to generate an intermittent or continuous source of pressurized air. What machines commonly require compressed air in the shop? …


Variable Speed Drive compressors  are a game-changer in the world of compressed air. These compressors automatically adjust their operating speeds to match the real-time demand for compressed air. It's an important feature, especially when it comes to energy savings. Surprisingly, the electricity consumed by a compressor can account for the largest portion of its total cost of ownership, not the initial purchase price. On average, VSD technology can reduce energy costs by 35% to 50%, which translates into significant saving …


When an industrial application calls for a steady supply of quality air, more and more users are turning to rotary screw compressors. Their efficiency, reliability and versatility make them a great choice in these cases. But there are countless applications and many different types of rotary screw air compressors. So which one is the right one for you? …


Your tool is stalling, or is not working to its expected performance, and you find yourself asking ‘why is my angle grinder spinning too slowly?’, or ‘why has my pneumatic grinder stopped working?’, read on. …

Show More

Quick Links
Get in touch

0800 808 486

  help@ashair.co.nz

  Nationwide coverage, all regions



Keep up to date with news, promotions and more

Full URL


© 2026 Ash Air • Website design by Fuel