How Understanding Compressor Life Cycle Cost (LCC) Drives Compressed Air Efficiency

A very important, yet often-overlooked aspect when purchasing a new air compressor is that the initial investment accounts for just a small fraction (approximately 10%) of the total Life Cycle Cost (LCC), with the lion’s share of expenses arising from the actual process of generating compressed air.

 

Having developed the first air compressor in 1904, Atlas Copco channels this time-honoured experience through continued investment in compressed air technology. “In our continuous quest to deliver the most efficient compressed air solutions, we have three focus areas: Engineering more energy-efficient machines, shaping state-of-the-art technologies and developing forward-thinking service solutions,” says JC Lombard, Business Line Manager of Atlas Copco Compressor Technique’s Oil-Free Air division.

 

To clinch this benefit trio, it is vital that customers understand their compressed air system in terms of knowing if it is efficient, how efficient it is and identifying efficiency opportunities. Thus, the first step in optimising a compressor room starts with a reliable analysis of the compressed air system. “Driven by our strong commitment to empowering customers, who are the heartbeat of our organisation, we share knowledge that will help to optimise their machines, processes, and plants,” stresses JC Lombard. “LCC erodes profits, so our goal is therefore to ensure that customers fully understand and appreciate the critical impact of LCC on the overall efficiency and cost-effectiveness of their compressors.”

 

Lombard explains that they use an LCC analysis, considered to be the most established method for assessing the investment in a product, to evaluate all stages of the air compressor’s life cycle. “The LCC calculation is typically based on either a planned or existing installation, serving as the foundation for defining the requirements of a new installation. The results from an LCC analysis can also serve as a basis for making decisions that will minimise the machine’s operational impact on the environment.”  He also emphasizes that conducting an LCC analysis requires in-depth knowledge and experience with compressed air installations and recommends that it should subsequently only be carried out by qualified skilled OEM specialists.

 

While OPEX (Operational Expenditure), which includes maintenance expenses (service, parts, and spares), constitutes a large portion (up to 10%) of the machine’s total lifespan costs, the most expensive component by far in the total cost of producing compressed air is energy. “It takes up to an eye-watering 70% of a compressor’s life cycle costs,” notes Lombard. “With 4% of total global energy consumption attributed to the production of compressed air, energy is one of the largest energy consumers in manufacturing and processing plants. There is no getting away from the fact that LCC can erode profits!”

 

As compressed air is the lifeblood of most production plants, users are highly dependent on this critical resource. Added to this, customers face growing pressure to produce more while reducing costs and environmental impact to maintain sustainable and profitable operations.

To mitigate LCC, it’s crucial to consider all relevant cost factors. There are different types of energy costs which not only impact profits and plant efficiency but also the quality of the end-product. Lombard explains that these are, in fact, target opportunities that customers can optimise through proper prioritisation, including optimising load and unload power, minimising blow-off losses, reducing pressure drop, and addressing air leakages.

 

Studies show that compressed air leakages can use up to 10 – 30% of the compressed air energy and thus result in huge power losses coupled with operating losses. Atlas Copco professionals recommend that the air leakage percentage should always be less than 5% to run a plant at optimum energy levels. By conducting a simple No Load Test to quantify the compressed air leakages (with no additional investment required), can provide customers with valuable insights on potential savings in their compressed air plant, subsequently adding substantially to the plant’s bottom line. air leak detection and repair saving up to a staggering 43kw on 1cm leak at 7bar.

 

Other key strategies for reducing LCC include adopting best practices and investing in the most economically competitive compressed air solutions available. This is where the premium Atlas Copco brand excels, offering high quality reliable and efficient machines with the latest integrated technologies, delivering unrivalled value for money and low Total Cost of Operation and Ownership.

 

While LCC plays a critical role in optimising compressed air efficiency, it’s important not to overlook Life Cycle Profit (LCP), which focuses on earnings gained through energy recovery. Here too Atlas Copco can assist customers in boosting their efficiencies with a sustainable green Energy Recovery solution. A staggering 94% of energy that is consumed by an air compressor is converted into heat which is released into the atmosphere. Atlas Copco’s Energy Recovery reclaims a large portion of this heat and repurposes it for applications such as workspace heating, hot water for industrial processes, or shower use. This not only reduces reliance on heat-generating equipment like geysers and preheaters but also presents scale-down opportunities for plants and lowers overall energy consumption and supports sustainability by reducing emissions.

 

“Ultimately, our compressor room optimisation solutions, which include high-quality machines, leading-edge technologies and analysing, optimising and monitoring solutions, combined with our commitment to empowering customers with essential knowledge like the importance of LCC, help to unlock the full potential and efficiency of their compressed air systems. In addition to the added values of reduced operating expenditure over the air compressor’s life cycle, low total cost of ownership and a rapid return on investment, our holistic approach not only supports our customers’ business sustainability today but also prepares them for future growth and evolving challenges,” concludes Lombard.                       /Ends/

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