Friday, February 27, 2009

How much are you spending on compressed air?

Most people have no idea just how much their company spends on compressed air. Setting aside the upfront cost of purchasing and installing an air compressor companies have to pay every month for either fuel, electricity, or some other utility to power their compressors. According to the Compressed Air and Gas Institute (CAGI) for every 2 psi of compressed air made it takes 1% of the compressors horsepower. So if you want to know what it is costing your company right now run the compressor in the back of your building here is a simple formula to use.

cost = (horsepower) (service factor) (0.746) (operating hours) (electrical cost) / (motor efficiency)

Give it a try if you dare.

my next posting will show how to start lowering the operating cost for compressed air.

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