1Copyright 2015© Reprinted by permission of Pallet Enterprise magazine — www.palletenterprise.com

Compressed air is used every day in apallet mill to power nailers, pneumaticequipment, automation equipment, con-veyors controls and actuators. Energycost to power compressed air systemsmay exceed 10% of your annual energybill. Improving the energy efficiency ofthe compressed air system will have adirect impact on your bottom line.

Electric utility incentive programs canhelp improve the cost effectiveness ofseveral of the top ten compressed airsavings suggestions.

Compressed Air System BasicsMany utilities across the country offer

compressed air incentive and custom in-centive programs that help pay for itemssuch as air compressors, variable fre-quency drives, air receivers, dryers, no-loss drains, high-efficiency air nozzles,low pressure drop filters, ultrasonic leakdetection and compressed air evalua-tions. Kaeser Compressors, Inc., http://us.kaeser.com/, provided the OptimizedCompressed Air System Schematicshown in Figure 1. This diagram is use-ful in identifying many of the incentiveprogram items. A compressed air systemis composed of a compressor, controls,tanks and a highway of pipes throughoutyour facility.

Who Offers CompressedAir Incentives?

Many utilities such as ComEd, https://www.comEd.com/Bizincentives, offercompressed air and custom incentiveprograms. ComEd’s stated goal for its

Comprehensive Compressed Air StudyProgram is to “identify opportunitiesto improve the efficiency of yourfacility’s compressed air system and re-duce energy costs without adversely af-fecting system operations,” http://goo.gl/Aw8osa.

An excellent resource for locatingenergy incentive and rebate programsis DSIRE (Database of State Incentivesfor Renewables and Efficiency),www.dsireusa.org.

What Equipment and Services AreEligible for an Incentive Payment?

Each electric utility that providescompressed air or custom incentive pro-grams has a different list of equipmentor services that are eligible for its spe-cific programs. Common items that areincluded in these programs are air com-pressors, variable frequency drives, airreceivers, dryers, no-loss drains, high-efficiency air nozzles and low pressuredrop filters. Free or subsidized services

Energy Savings

Compressed Air SystemIncentivesBy Ralph Russell

PALLET ENTERPRISEAs seen in April 2015

Top Ten Steps to

Compressed Air

Savings

1. Turn It Off2. Fix Existing Leaks3. Prevent New Leaks4. Reduce Pressure5. Check Drains6. Review Piping Infrastructure.

Many systems are not optimized.7. Change Filters Systematically.

Not every once in a while.8. Recover Heat. Compressing air

generates heat – reuse it!9. Emphasize Proper Maintenance.

Ignoring maintenance costsmore.

10. Identify & Eliminate Inappropri-ate uses of compressed air.

(Source: The Compressed Air &Gas Institute)

EnergyReprintpeApril2015.pmd 5/8/2015, 11:52 AM1

2 Copyright 2015© Reprinted by permission of Pallet Enterprise magazine — www.palletenterprise.com

may include ultrasonic leak detectionaudits and compressed air system evalu-ations.

Evan Sparer, systems engineer atIngersoll Rand in Richmond, Virginia(www.ingersollrandproducts.com), saidthat on a recent installation his companywas able to completely stabilize plant airpressure and shut off two less efficientcompressors, saving the customer$35,000 per year in energy. Sparer con-tinued, “There is a lot of opportunity inreplacing wasteful timed solenoid drainvalves with Pneumatic no air lossdrains.”

How Can the IncentivePayments Be Received?

The procedure to receive the incentivepayment varies with each utility andmay include an initial compressed airsystem evaluation, leak detection andsealing, and pre-approval using aworksheet. For example, look at thisComEd worksheet online at http://goo.gl/KB1hy2.

Be sure to read all of the small printand pay attention to any incentive caps,requirements to use utility approvedcontractors, and deadlines to make ap-plication for the incentives.

Forest Industry Success StoryIt is reported that Columbia Forest

Products in Newport, Vermont sawan estimated lifetime customersavings of $540,000. Gerry Mongeonat Air Compressor Engineering(www.aircompressoreng.com), a full-line master distributor for IngersollRand since 1960, said that his teamworked with Efficiency Vermont,www.efficiencyvermont.com, to obtainthe incentive payments. You canread the whole story at http://goo.gl/V6PJg5.

Columbia Forest Products had an aircompressor that failed. When one oftheir two main air compressors failed,Aaryn French, plant engineer at Colum-bia Forest, then sought the advice of

Resources• DSIRE — www.dsireusa.org

• “Compressed Air Best Practices” magazine Energy Incentives — http://www.airbestpractices.com/energy-incentives

• Ingersoll Rand white paper on the effects of system pressure on com-pressed air system energy consumption — http://goo.gl/bl7MYs

• Compressed Air Challenge — www.compressedairchallenge.org

• Compressed Air & Gas Institute — www.cagi.org.

Lenny Mongeon at Air Compressor En-gineering in Hinesburg, Vermont. To-gether they contacted Efficiency Ver-mont to conduct an energy use assess-ment of the factory.

According to the Efficiency Vermontsuccess story, “During the assessment,numerous air leaks that put a strain onthe compressed air equipment wereidentified and repaired. This leak correc-tion reduced the demand for compressedair, and as a result, the replacement aircompressors could be smaller and de-signed to operate more efficiently.”

The success story reports an energyefficiency investment payback (includ-ing incentives) of five months and anestimated first year utility bill savings of$54,000. PEPE

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