How to Reduce Compressed Air Costs in Your Facility for Free: ESCO Contracting, Constant Monitoring

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Air Compressors account for up to 30% of the energy costs of manufacturing. Read the article to know how you can reduce it.

With India aiming to achieve net zero emissions by 2070, industries face increased pressure to operate sustainably. In addition, companies now have Key Performance Indicators (KPIs) that include sustainability targets. SEBI, India’s capital market regulatory body, has mandated sustainability reports for the top 1000 listed companies. Consequently, as the compliances around sustainability norms grow stricter, so has the requirement for industries to become energy efficient.

Energy efficiency is a crucial tool to reduce greenhouse gas emissions, promote sustainability, and combat climate change. It also helps lower energy consumption and associated costs.

However, the high upfront investment needed to implement energy efficiency measures is usually a concern for Industries.

In this scenario partnering with an Energy Services Company – ESCO – is highly recommended.

An ESCO, like Energeia, is a one-stop shop executing an energy efficiency project. This includes identifying, quantifying, financing, implementing, monitoring, and verifying energy-efficient solutions. The project will generate enough savings to cover the cost of the equipment and services provided by the ESCO. Furthermore, it will unlock cost savings for the facility. To read more about what an ESCO is, click here.

Air Compressors account for up to 30% of the energy costs of manufacturing. This can be reduced by implementing various Energy Conservation Methods (ECMs).

How is compressed air optimization done?

An Air Compressor System in which the demand is matched with the supply is considered to be the most energy-efficient. However, plants usually have varying demand patterns, pressure requirements, and complex piping systems, which drags the efficiency down.

The optimization process involves analyzing the energy consumption data of the compressed air system. This must be performed at a high frequency. Power consumption, flow, and pressure would need to be monitored at a very high frequency. At Energeia, we monitor this down to every second via our Energy Monitoring System (EMS).

After data analysis, areas of improvement for ECMs are identified. This can involve identifying and repairing leaks, optimizing compressed air pressure, and improving compressor room or Airnet design. It also includes retrofitting and replacing equipment.

These measures play a vital role to reduce the hidden costs of maintenance by up to 20% and overcome the unplanned downtime of compressors. ECMs help improve the life cycle cost of the compressor thereby improving the overall efficiency of the system.

What are the Energy Conservation Methods for Air Compressor Optimization?

To achieve an energy efficient Air Compressor System, one has to work on the demand and supply side.

Demand Side

Understanding the varying requirement of pressure and flow in different processes is important to make the entire system efficient. On the demand side, the following measures could be implemented:

i) Identifying and repairing leaks: A significant portion of the cost of an air compressor is unnecessary. Nearly one-third to one-fourth of industrial compressed air consumption is wasted due to leaks. This could be due to improper maintenance of valves, piping, and other components. During audits, we use leak detectors to identify the location of the leaks in a timely manner. These smart devices come with advanced sensor technology that can detect the smallest leaks. They also provide information on the leak size, the loss to the unit, and cost estimates for remedial action.

ii) Eliminating Artificial Demand: Artificial Demand is present in a lot of Industries, especially in facilities that have varying end pressure requirements. Supplying equipment air at the right pressure makes the overall system efficient.

iii) Improper Usage: Not all applications that require air require compressed air. Certain low-pressure applications like blowing can be done with the help of blowers, which have a much lower energy cost.

Supply Side

The Air Compressors and Air Treatment equipment themselves have to be efficient. On the supply side, the following could be the efficiency measures:

i) Using energy-efficient Air Compressors: Several OEMs have been manufacturing energy-efficient Air Compressors with specific power consumption as low as 0.15 for 6 bar applications. Replacing old Air Compressors with energy-efficient ones is an obvious solution.

ii) Reducing Pressure Drop across equipment: Equipment would need to be maintained properly in order to ensure that there is minimal pressure drop across them. This would enable the Air Compressors to run at pressures closer to the demand, lowering their energy consumption.

iii) Reduce unload power consumption: Screw Air Compressors generate no air while running unloaded. This drastically reduces the kW/CFM of individual Air Compressors. Air Compressors which are unloading frequently should be retrofitted with VFDs to save unload power consumption.

iv) Continuous Energy Monitoring: Air Demand continuously changes within facilities. Electronically monitoring power consumption, flow, and pressure continuously ensures that Air Compressor Plants are running optimally in all scenarios.

Energeia undertakes long-term ESCO contracts with their clients, helping them optimise their air compressor plant, without investing any capital.

We monitor and baseline the present Air Compressor Plant efficiency after which we identify, finance, and implement the ECMs to improve the plant’s efficiency. Energeia gets a share of the savings for a fixed tenure, whereas clients enjoy savings at 0 costs.

Reach out to us to learn more about E-Air and how Energeia can help make your Air Compressors Plants more efficient!

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Anusua Das

HR Manager

Anusua is redefining HR with a passion for people and a purpose-driven approach.

She is an experienced HR leader with over 7 years of expertise across startups and MNCs, including roles at Cinépolis India, Talentoj, JindalX, and Rus Education. She excels in fostering collaborative work environments and is committed to shaping a values-driven culture. Known for her empathy and resilience, she has received accolades for her meaningful connections with employees and managers.

At Energeia, Anusua leads the HR function with a focus on inclusivity, co-creating policies with employees and driving a flexible, results-oriented work culture. Passionate about building meaningful workplaces, she ensures that new ideas are not just welcomed but actively implemented, making Energeia a space where people can thrive.

Rahul Chougule

Sr. Energy Analyst

Rahul turns raw data into impactful energy savings.

With an M.Tech in Heat Power Engineering and a B.E. in Mechanical Engineering, Rahul’s expertise lies in developing innovative, data-driven solutions to optimize energy performance across diverse sectors.

He is certified in Microsoft Power BI, Performance Measurement & Verification, and is a BEE Certified Energy Manager. At Johnson Controls, Rahul successfully led projects across Northeast America and the Middle East, delivering substantial energy savings through advanced M&V techniques. 

At Energeia, Rahul plays a critical role in the Shared Savings ESCOs, focusing on emissions reduction and sustainable energy solutions. He is passionate about using data analytics to drive meaningful change in energy performance, helping clients achieve cost savings and a reduced carbon footprint.

Srinivas Tejavath

Head, HVAC Division

Srinivas is the coolest HVAC expert and a prolific energy auditor.

A BEE-Certified Energy Manager, he’s conducted over 250 audits, bringing deep technical insight to Energeia’s E-Chill (HVAC) business vertical. Srinivas has held senior auditing and engineering roles at Johnson Controls, Electro-Mechanical & Refrigeration Group, Siri Exergy, Zenith Energy, Maytas Infra and Carbon Advisory Services, where he focused on finding inefficiencies in cooling systems.

With a B-Tech in Mechanical Engineering and an M-Tech in Energy Systems from Jawaharlal Nehru Technological University, Srinivas leverages his extensive theoretical and practical knowledge at Energeia to drive modern HVAC innovations and deliver impactful energy solutions for industries.

Rishabh Sharma

Founders’ Office

Rishabh is on a mission to reinvent energy systems for a sustainable future.

A Chemical Engineering graduate from the National Institute of Technology (NIT) Srinagar, Rishabh also holds a PGDM in Energy Management from NTPC School of Business. His unique blend of technical knowledge and strategic acumen fuels his passion for sustainability, and operational excellence.

With experience spanning ACME Group, HCL Foundation, GE, and Bharat Aluminum Company, Rishabh has excelled in managing strategic projects, leading ecological initiatives, driving lean deployments, and optimizing manufacturing processes. 

Rishabh’s career highlights include an invitation to Rashtrapati Bhawan for the National Innovation Clubs meeting at the 2017 Festival of Innovation, a bronze medal at the All India Student Design Awards, and a published business case study with Ivey Publishing, Canada.

At Energeia, he drives transformative change through cross-functional initiatives, pushing the boundaries of energy efficiency and sustainability worldwide.

Rimjhim Panwar

International Sales Manager

Rimjhim is a globally-seasoned manager who never forgets to dot her i’s and cross her t’s.

Adept at building lasting relationships across borders, she brings over a decade of expertise in the international energy sector. Her career spans key roles at Power Grid Corporation of India Limited (Powergrid), MEBSPL, and an almost seven-year tenure at Japan-based Mitsui & Co., Ltd. 

At Energeia, Rimjhim plays a pivotal role in driving international business strategy across Africa, the Middle East, and Southeast Asia. Her meticulous approach, humble leadership and strategic vision enable her to navigate diverse, global markets with precision and grace. 

With a strong focus on client satisfaction, Rimjhim is instrumental in expanding Energeia’s global footprint and advancing sustainable energy solutions across the Global South.

Riyaz Husain

Sr. Manager, Decarbonization

Riyaz is a growth-oriented leader whose curiosity is contagious.

He is a distinguished expert in decarbonization and sustainable technologies, holding a Mechanical Engineering degree and an M.Tech in Renewable Energy from TERI School of Advanced Studies. 

His credentials – including a BEE certification as an Energy Manager, a PMVA certification from EVO, and a COBENEFITS specialist designation from Renewables Academy AG in Berlin – reflect his deep expertise.

Riyaz’s active involvement in the International Environment Forum and the Hong Kong Chemical Biological & Environmental Engineering Society (HKCBEES) highlight his leadership in global sustainable development. He’s also the co-author of the book, Joy of Engineering and Management.

His unique ability to demystify complex concepts, combined with technical expertise and field experience, makes him a growth-hungry leader who’s constantly pushing the boundaries of what’s possible.

Sumit Gupta

Vice President, Sales

Sumit is a veteran industrial energy expert and passionate mentor.

With over 20+ years of experience in advancing industrial sustainability, he’s held key leadership roles at Thermax, Smart Joules, Alstom Power (now part of GE), IHEL (ISGEC Heavy Engineering) and Clyde Bergemann Power Group.

Trained in Mechanical Engineering, Sumit’s multidisciplinary experience spans New Business Development, Sales, Project Management and Operations. From designing boilers to scaling startups and even managing a paper mill as CEO, Sumit understands the energy optimization business in and out.

At Energeia, he oversees the sales and business strategy, leveraging his deep knowledge of customer needs to help organizations reduce their emissions and energy expenses. He’s a great mentor and thrives on helping his team realize their full potential.

Amlan Panda

Co-founder & CTO

Amlan knows energy technology like the back of his hand.

With a BTech in Electronics & Communication Engineering from the Delhi Technological University, Amlan’s expertise lies in bridging complex technological concepts with practical, on-ground applications.

At Energeia, he’s the bridge between big ideas and brass tacks. One day he’s mapping out the future, the next he’s in the trenches, training factory engineers on the latest energy efficient tech.

Amlan’s previous work with industry giants like Bharti Airtel and Vodafone India helped him hone his skills in supply chain management and process automation. As a Khemka Scholar and a member of tGELF Foundation’s Leaders Forum, he’s passionate about social entrepreneurship and deeply believes in India’s potential to be a global leader in new-age energy technology.

Sookrit Malik

Co-founder & CEO

Sookrit lives and breathes data-driven industrial energy innovation.

With an MA in International Energy and Resource Policy from The Fletcher School and a BA from Tufts University, Sookrit’s expertise lies in building modern, data-driven solutions for energy-intensive industries.
His award-winning research on industrial energy efficiency, born from his MA thesis, forms the foundation of Energeia’s mission. An India Renewable Energy Innovation Fellow at LISD and a member of the Aspen Institute Socrates Program, Sookrit envisions the fourth industrial revolution as a ‘resource revolution’ where we need to leverage new technologies to optimize the use of our limited natural resources.

His career spans roles at Fidelity Labs in Boston working on AI and blockchain, and EOS GmbH in Munich, focusing on additive manufacturing strategy.

Sookrit champions ethical and altruistic leadership beyond just business. After the 2015 Nepal Earthquake, he led a team building resilient school shelters, earning The Impact Award from tGELF Foundation. It was during this project that he serendipitously met his future Energeia co-founder, Amlan Panda.

Sankriti Malik

Head, Marketing & Growth

Sankriti is a dynamic growth catalyst, turning customer insights into impactful strategies.

She’s held multifaceted roles at high-growth startups like Kodo Tech, Athena Education, and Hora.AI, where she drove initiatives in product management, UX research, and branding. She’s also contributed to strategy roles at Indian Oil, Times Internet (BCCL) and The Copenhagen Post.

A Psi Chi Honors graduate from Wesleyan University in the US, Sankriti blends her expertise in UX design, data, and strategy to lead Energeia’s marketing efforts – always keeping the customer at the heart of her work. 
 
She’s passionate about gender equity in climate tech and actively contributes to networks like Leap.club and Ladies Who Lead. Her commitment to impactful digital design led her to join communities like GrowthX, IxDF, and Terra.do. In the past, she’s been a Fellow at the Patricelli Center for Social Entrepreneurship and co-founder of the Design Think Tank.