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


Lighting tower reminds night, but also refers to diesel engine. In turn, night reminds us of silence, which is not exactly what we associate with an engine... With urban centers becoming increasingly dense and legislation increasingly strict about noise pollution in construction sites, keeping decibels to acceptable levels has been the great challenge of the main construction equipment manufacturers. …


In today’s world of increasing environmental awareness and the drive for sustainable practices, industries are actively seeking innovative solutions to reduce energy consumption and minimize their carbon footprint. If your business uses air compressors, focusing on energy recovery in air compressors is one area to pay attention too.  …


Did you know that 70% of the total cost of compressor installation consists of energy costs?

There are many reasons why saving energy is important for your business as it helps you in many ways to make your business more efficient as well as providing you with many different forms of value. Ash Air's range of Alup products can help you become more energy efficient to help reduce energy bills, reduce your costs and comply with all environmental legislation. …


Exactly what is compressed air? Where does it come from? What is it for? When we compress—or squeeze—air into a small space, we call it compressed air. When humans discovered the ability to compress air, civilisation made a huge leap forward. The reason? Compressed air opened the door to all kinds of new production methods.  …


Compressed air system leaks are indeed a big source of energy waste. Leakage in piping systems have been shown to exhibit leaks of up to 25 percent of the total energy costs. Addressing leaks is one of the first maintenance steps a facility can take to reduce energy costs. …


Think about efficiency for a minute. Every year with constant innovation, things are becoming even more efficient. Everything from electronics to industrial machinery are being developed to get more done faster while using less power. …


The air surrounding us is a mixture of fry air and water vapor. The amount of water in the air depends on the temperature and volume of the gas. The higher the air temperature, the higher the air's ability to absorb more moisture. Find out about compressed air humidity here. …


Investing in an on-site industrial gas generator is a great way to reduce your environmental footprint and your operating costs. Once you have taken this important step, there are some other things you can do to maximize your gas generation energy savings. Here are seven of them. …


For many businesses, preserving energy and becoming more sustainable have become top priorities. That not only saves them money but also makes them more competitive in the future, when demand for “green” products and services will only increase. Not just because governments mandate greater sustainability but also because customers expect it. …


While you relax and read this, do you see an electronic appliance around you? Wondering how could you relate to the current read? We got you! Compressed air is all around, in the electronic appliances you use right now. …


There are many contaminants that can threaten your compressed air system, but moisture is among the most prevalent. You may be thinking, but it’s just water, but water can have a devastating impact on your compressed air system, your production equipment, and your end product. The best way to prevent moisture from contaminating your compressed air is with a dryer. …


Compressed air can be one of the most expensive forms of energy for manufacturing plants, often using more energy than other equipment. One horsepower of compressed air requires eight horsepower of electricity. With many air compressors running at efficiencies as low as 10%, there’s often plenty of room for improvement. Fortunately, 50% of compressed air systems at small- to medium-sized industrial facilities have opportunities for low-cost energy conservation. …


As easy as it would make all of our lives, vacuum pumps are far from being “one size fits all”. Not only do you have the size to consider when choosing a vacuum pump, but more importantly type. I will briefly touch on some of the advantages and disadvantages associated with each vacuum technology we deal with. This should give you a better understanding of where to begin your search... …


AIRnet offers moisture-eliminating drop fittings called Quick Drops! Quick Drops make “drop-tees” obsolete, removing the need for extra parts and pipe, while saving time and money. …


Proper compressor installation and commissioning helps ensure trouble-free startup and long-term reliability. Thorough inspection and critical review during each phase of the installation process eliminates “built-in” deficiencies or problems which c... …


Price is an important consideration when choosing a tool for metalworking applications, but it alone should not be the deciding factor. Other things also contribute to the total cost of ownership, performance, and, ultimately, the overall productivit... …


Are you faced with the decision of whether to switch from purchasing bottled nitrogen or oxygen to on site gas generation? In that case, the decision is easy. You should! Lower costs, the right purity, less transportation emissions, improved safety, no logistics headaches. In all of these areas, on site gas generation is the superior solution. And making the switch is easy. All you need is a gas generator and a supply of compressed air. …


Did you know that one of the largest costs for industrial manufacturers is compressed air? That’s right – anywhere from 12% to 40% of a facility’s total energy costs come from its compressed air installation. This means that finding innovative ways (no matter how small) to increase compressed air efficiency can amount to big savings over the long run! Items like leak elimination, air audits, reduced pressure bands, and reducing unloaded running hours are some of the most popular ways to decrease energy usage – but there are many other actions that you can take. Read on to discover additional ways to reduce your costs and make sure your compressor system is running as efficiently as possible! …


A properly sized and designed piping system is a necessary component of any distribution compressed air system. Without this key component in place, the delivery of air from the compressor to the specific points of use will be inefficient and costly, both in the short term as well as in the long term. Let’s look more closely at how to size your compressed air piping system to ensure minimal pressure loss while maintaining maximum efficiency. …


Potential for growth of micro-organisms in a compressed air system is tied to the moisture level (dew point) of the compressed air. In simple terms, if there is moisture in your compressed air, microorganisms such as mold and bacteria have the environment they need to grow and thrive. While it’s true that as air is compressed, much of the moisture present in the intake air will condense, enough moisture remains to allow micro-organisms to proliferate. …


Your compressor installation is a workhorse that requires regular service and maintenance to help it achieve maximum efficiency and longevity. This is where compressor monitoring and data gathering technologies come in, as these provide meaningful information on your system that can be visualized, tracked over extended time periods, and used to make insightful decisions regarding compressor performance.  …


A variable speed compressor is not for every application. VSD rotary screw compressors need to be ran in a location that is in need of 24/7 compressed air and has a changing demand on the amount of air needed. If your compressed air needs are constan... …


Compressed air purification equipment must have a very low pressure drop, long service life and be strong enough to withstand the most strenuous operating conditions. Protection from oil slugs or compressor air/oil separator failure is essential. …


Intelligent Connectivity System (ICONS) is the eyes into your compressed air system. Ditch the logbooks, the regular visits to the compressor room and dealing with surprises with your compressor. • Most maintenance organizations operate between 10% to 40% efficiency • Most spend more than 50% of time on emergency work • Reactive maintenance costs 3-5 times more than preventive maintenance. …


Compressed air is used in many different industries. From refrigerator manufacturers to toy makers, companies around the world depend on compressed air to produce products. It's so important that many consider it a utility as significant as electricity, water or natural gas. …


Compressed air is always contaminated. Contaminants include, • Liquid oil - oil aerosols - oil vapor, Dirt - microorganisms - pipescale, Trace gases: carbon monoxide, sulfur dioxide, nitrous oxide. Learn more about why you need to filter compressed air...  …


As part of a concerted effort worldwide to reduce energy consumption, CO2 emissions and the impact of industrial operations on the environment, regulatory authorities in many countries have introduced legislation to encourage the manufacture and use ... …


Air is always contaminated with solid particles such as dust, sand, soot, salt crystals and water as it leaves the compressor. An effective compressed air treatment system lowers the dew point of the air and takes out the elements that may harm equipment downstream of the compressor and dryer …


Dewpoint spikes immediately after desiccant switchover (line C) indicate that the desiccant was not sufficiently cooled before being brought on-line. Hot desiccant will not adsorb moisture well until it cools down, after which the dewpoint should dro... …


Don’t be alarmed if you find oil in your air compressor tank. Actually, all rotary screw compressors pass trace amounts of oil in the compressed air. The question is how much is the normal amount of oil in my compressor tank? …


As you know, compressed air filters protect your machine from dirt, dust, oil and water. These contaminants are extremely common in the areas you would find a compressed air system and will wear down your machine if not properly filtered out. …

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