How to reduce compressed air costs and save energy

By fixing leaks, adjusting pressure settings, recovering energy, and upgrading your systems, you can cut compressed air energy costs by 20-35% or more — without compromising performance.

This guide gives you practical, actionable strategies to make that happen — from quick fixes to longer-term upgrades. Whether you’re managing day-to-day operations or building a business case for efficiency, you’re in the right place.

Most facilities don’t realize just how expensive compressed air really is. It often gets lumped in as “just another utility,” but in reality? It’s one of the costliest energy consumers in your plant.

Here’s a simple formula to figure out the energy cost:

Example scenario:

If you operate a 90 kW compressor for about 6,000 hours per year, and your electricity costs are around €0.15 per kWh, with a 75% average load factor (0.75) and a motor efficiency of 0.92 (common for IE3 motors), the annual electrical energy cost is €66,000 to run the compressor.

Not small change, right?

For traditional fixed-speed compressors, electricity typically accounts for around 76% of the total life-cycle cost. But with modern variable speed drive (VSD) compressors — especially Atlas Copco variable speed models using internal permanent magnet motors (iPM) —the energy share can drop by 35–50%.  So if you're only factoring in maintenance and purchase price, you're missing the real money.

Quick tip: Start tracking compressor usage — operating hours, pressure, duty cycles. You’ll need that data to prove savings when you implement improvements.

Leaks are one of the most common and costly problems in compressed air systems. And they usually go unnoticed.

A 1 mm leak at 7 bars can waste around 1.2 l/s, costing you €300–€400 a year. Multiply that by 50 or 100 leaks? That’s thousands in wasted energy.

Here’s what you can do:

• Start with a basic audible inspection during quiet times
• Spray soapy water on fittings to find bubbling leaks
• Ultrasonic leak detection identifies the high-frequency sound created by escaping compressed air.
  It works even in noisy production environments and while the system is running, making it ideal for routine surveys and large installations.
• Thermal cameras supports leak detection by revealing temperature differences around pipes, fittings and connections. It is particularly useful for hard-to-reach areas and for confirming suspected leaks during detailed inspections.

Prioritize fixing:

• Unused drop lines
• Worn hoses and seals
• Leaky fittings and couplings

Each 0.1 bar of pressure loss from leaks costs about 1% in energy.

Make leak detection a regular habit — quarterly surveys are ideal. Leaks never stop forming, especially with vibration and aging equipment.

Let’s talk pressure — and why running your system “just a bit high” may be costing you more than you think.

Every 1 bar increase in system pressure = about 7% more energy consumption.

Many facilities run 1–2 bar higher than needed to compensate for:

• Pressure drops
• Dirty filters
• Poor pipe design

Instead of dialing up the pressure, follow this approach:

1. Measure pressure at the point of use and compare it with the pressure setting on the compressor to identify the pressure drop
2. Identify losses in piping, filters, and connectors
3. Replace clogged filters before they restrict airflow

Example: Dropping pressure from 7.5 bar to 7.0 bar on a 90 kW system could save around €3,000–€4,000 annually, depending on energy rates and operating hours.

Tip: Design the piping system for air distribution with future expansion in mind. Consider using larger pipe diameters from the start to accommodate potential increases in air demand. A common issue in factories is that while air supply capacity is expanded over time, the piping system remains unchanged. This often leads to undersized pipes, causing higher pressure drops and significantly increasing operational costs.

Bonus: Program automatic pressure reductions during evenings and weekends if production allows for it as this will produce some very nice savings!

Compressed air isn’t free — so using it where it’s not needed is like tossing euros out the window.

Common culprits include:

• Blow-off cleaning (use low-pressure air movers instead)
• Cooling electrical cabinets (try vortex coolers or fans)
• Operator cooling (go with fans)
• Part drying (use air knives or hot air blowers)
• Mixing or agitating (mechanical mixers are cheaper)

A single blow-off nozzle consuming 35–40 m³/hour can cost €1,500–€2,500 per year. Swapping it for an efficient alternative can cut that by over 50%.

Tip: Use signage near air stations showing how much air costs per minute. Awareness alone can reduce misuse.

Variable speed drive (VSD) compressors offer an excellent solution for reducing energy consumption in systems where demand varies.

Here’s the thing: the vast majority (90-95%) of the energy consumed by your air compressor is converted into heat rather than compressed air.

Up to 94% of the energy used to compress air can be recovered as heat. For example, a 75 kW compressor running 4,000 hours per year can generate more than 250,000 kWh of recoverable thermal energy annually, which could equal around €15,000 in heating cost savings.

Payback periods for heat recovery systems typically range from 1.5 to 3 years, depending on the system configuration and local energy costs.

Tip: Plan your heat recovery system during compressor selection for optimal sizing and integration.

Skipping maintenance might save a little time, but it can cost a lot of money.

Poor maintenance can drive energy costs up by 10–25%. That’s not even counting unplanned downtime.

Your core checklist should include:

• Replace intake filters as indicated by maintenance schedule (or sooner if pressure drop increases)
• Inline filter elements should be replaced as indicated by maintenance schedule or annually - whichever comes first.
• Oil-separator every 4,000-8,000 hours - depending on model and working conditions.
• Regularly inspect the cooling fans and clean the cooler to ensure optimal and efficient performance.
• Check belt tension quarterly in case the drive train is belt driven).
• Monitor lubricant level and condition monthly

Leaky condensate drains waste air too. If you’re using old timer drains, consider switching to zero-loss drains to prevent compressed air waste.

A clean, ventilated compressor room improves performance. Every 4°C drop in intake temperature = ~1% efficiency gain.

If you want to uncover every hidden saving opportunity, nothing beats a full compressed air audit.

Audits typically reveal 15–30% energy savings, especially in systems that have evolved over time without a full redesign.

Compressed air is essential, but it doesn’t need to be expensive.

With the right strategy — even on smaller systems like 22 kW — you can:

• Save 30% or more on energy
• Extend equipment lifespan
• Improve uptime and reliability
• Lower your facility’s carbon footprint

Start with the basics. Fix the leaks. Measure your pressure. Upgrade when it makes sense. And recover what you're already paying for.