# Tips on how to Market Compressed Air Energy Efficiency to Targeted Industrial End-Users

May 2006

A broad, comprehensive strategy should be used to market compressed air
energy efficiency to your targeted industrial end-users. This strategy
should include activities that target three important groups, each of
which is centrally involved in the ultimate decision to adopt compressed
air energy efficiency measures:

-   *Small end-users \~* (\<1 aMW/yr) small enough to have an assigned
    account representative or Commercial and Industrial representative,
    but that have sizable compressed air connected horse power (HP)
    load.

-   *Large end-users \~* (\>1 aMW/yr) have an account representative and
    are ideal candidates for compressed air technical assistance based
    on significant connected HP load.

-   *Compressed air market providers \~* specifically mechanical and
    electrical engineering contractors and vendors, which deliver
    compressed air efficiency services to industrial end-users.

    The table below provides recommendations regarding the types of
    activities to target to each of these stakeholder groups.

+-----------------------------------------+--------+--------+---------+
| Strategic Ideas                         | Target |        |         |
|                                         | Groups |        |         |
+-----------------------------------------+--------+--------+---------+
|                                         | S      | Larger | Com     |
|                                         | maller | Cus    | pressed |
|                                         | Cus    | tomers | Air     |
|                                         | tomers |        | Market  |
|                                         |        |        | Pr      |
|                                         |        |        | oviders |
+-----------------------------------------+--------+--------+---------+
| 1.  Compressed Air Information Packet   |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 2.  Basic Compressed Air Training       |        |        |         |
|     Information                         |        |        |         |
|                                         |        |        |         |
|     *Level I - Fundamentals*            |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 3.  Advanced CA Training Course(s)      |        |        |         |
|     Information                         |        |        |         |
|                                         |        |        |         |
|     *Level II -- Advanced Management*   |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 4.  Walk-through compressed air         |        |        |         |
|     facility audit                      |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 5.  Detailed compressed air facility    |        |        |         |
|     audit/technical assistance          |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 6.  Compressed air Energy Efficiency    |        |        |         |
|     account management strategy         |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 7.  Incentives toward compressed air    |        |        |         |
|     system audit costs                  |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 8.  Incentives toward compressed air    |        |        |         |
|     system efficiency measure costs     |        |        |         |
+-----------------------------------------+--------+--------+---------+
| 9.  Simple System Analysis Tool         |        |        |         |
+-----------------------------------------+--------+--------+---------+

**[Descriptions of each of the strategic Ideas:]{.smallcaps}**

**Compressed Air Information Packet (Item 1).** This packet contains
basic information about compressed air systems, compressed air
efficiency measures, upcoming compressed air training (CA training)
along with why they should attend, published case studies, compressed
air audit services, and compressed air incentives (for technical studies
and efficiency measures) that are available. It is suggested to use case
studies as a tool to demonstrate to industrial end-users on how they can
possibly save up to 30 percent on compressed air costs. Reference should
also be given as to whether energy efficiency incentives are available.

**Compressed Air Level I and II Training Courses (Items 2 & 3).**
Utilities are encouraged to invite all targeted industrial end-users
(both large and small), account managers, and compressed air engineering
contractors to attend the basic Level I -- Fundamentals of Compressed
Air Systems training. The advanced Level II -- Advanced Management of
Compressed Air Systems training would be reserved for larger customers,
account managers and representatives and even contractors.

CA training has proven to be an important first step towards the
adoption of compressed air energy efficiency O&M practices and measure
installation. The basic Level I CA training builds awareness of the
current high costs of compressed air inefficiency, and the
cost-effective actions that can be taken to improve compressed air
efficiency, while the advanced Level II CA training provides a more
in-depth technical instruction and demonstration of software that can be
used to benchmark current compressed air system operations and evaluates
compressed air efficiency measures.

The CA training courses and workshops are made available throughout the
Pacific Northwest by several sponsors including the Bonneville Power
Administration (BPA), US Department of Energy (USDOE) BestPractices,
Washington State University (WSU) and Northwest Energy Efficiency
Alliance (NEEA). It should be noted that utilities can provide a special
training session for targeted industrial end-users, if the other
sessions are not feasible to attend.

It should also be noted that information and training alone is not
enough to assure industrial end-users to take action. These need to be
followed up with a facility audit and/or more detailed technical and
financial assistance. The audit and technical assistance costs could be
co-funded between the end-user and serving utility, in order to provide
them with an incentive to implement the recommendations. Without
"co-funding" many end-users have little or no investment in the results
and many will not take further action.

**Walk-through Compressed Air Facility Audit (Item 4).** For smaller
industrial end-users, using a walk-through compressed air audit is
recommended. This audit would be conducted using a checklist approach
(*see CA2006-12 Compressed Air System Data Sheet*) and would involve
little or no on-site system performance data collection. The checklist
would provide a set of no or low cost compressed air efficiency measures
that could be implemented by the industrial end-user relatively easily.
Examples of these measures are simple O&M measures for both the supply
system and the distribution system. One option for utilities to consider
is using compressed air engineering subcontractors as the trained energy
auditors for these simple walk-through audits. The utility could co-fund
half of the audit cost with the industrial end-user paying the remaining
half.

**Detailed Compressed Air Facility Audit/Technical Assistance (Item
5).** For larger industrial end-users (over 1 aMW or over 100 HP of
compressed air), a detailed compressed air facility evaluation is
warranted. Firms with the appropriate expertise would perform the
evaluation. Again, co-funding by utilities and industrial end-users is
encouraged, as this strategy has been employed by other utilities in the
region. The detailed evaluation would involve the following types of
activities:

-   **Develop a general understanding of the compressed air system and
    how it fits into the overall plant** by talking over the phone with
    plant personnel who best know the system, and by reviewing drawings
    and specifications, if available.

-   **Collect on-site data** by installing monitoring equipment to
    measure key parameters, including the power draw for each
    compressor, and pressures in the main supply point and at important
    end uses.

-   **Assess the extent of leaks** using appropriate leak detection
    diagnostic equipment (e.g., an ultrasonic leak detector, etc.).

-   **Conduct an initial inspection** of the plant and its compressed
    air system accompanied by appropriate plant staff, to learn more
    about the compressed air system, operation, maintenance, and any
    problems they might be having. Begin collecting information needed
    to model the compressed air system and efficiency measures.

-   **Perform a detailed compressed air modeling/analysis** using
    AirMaster+ or equivalent software

-   **Prepare detailed findings and recommendations report** to improve
    compressed air system efficiency based on the data collected and
    modeling results.

    **Compressed Air Energy Efficiency (CAEE) Account Management
    Strategy (Item 6).** This is for larger industrial end-users that
    have an assigned account manager or commercial and industrial
    representative that can develop and follow a CAEE account management
    strategy. Utilities should limit the CAEE strategy to larger
    industrial end-users with significant compressed air-related savings
    potential (e.g., facilities with at least 150 HP of compressed air
    connected load, and/or operating more than 6,000 hours per year).

    The CAEE account management strategy should consist of a series of
    steps designed to lead the industrial end-user to implementation of
    the CAEE measures. These steps are as follows:

    [Step 1:]{.underline} Building awareness of compressed air
    inefficiency and associated costs (via

    informational materials, training, etc.)

    [Step 2:]{.underline} Educating the industrial end-user on
    compressed air efficiency improvements and benefits, and
    availability of utility audit/technical services, and incentives.

    [Step 3:]{.underline} Obtaining approval by senior management to
    invest in CAEE measures\
    that meet the company's financial requirements.

    [Step 4:]{.underline} Performing an assessment of the industrial
    end-user's facility to identify\
    areas of inefficiency and perform detailed modeling of CAEE
    alternatives.

    [Step 5:]{.underline} Working with the industry to implement
    recommended CAEE measures,

    partially funded by utility incentives.

**Incentives toward Compressed Air Audit Costs (Item 7).** Utilities are
encouraged to pay a portion of the compressed air audit costs, either
through specific incentives or by co-funding. One strategy is to pay up
to 50 percent of the audit costs for audits performed. Some programs
will also pay the remaining 50 percent of costs, once the customer has
installed the recommended measures.

**Incentives toward Compressed Air Measure Costs (Item 8).** If
possible, participating utilities should consider offering financial
incentives (or rebates) to help buy down the cost of compressed air
technical improvements undertaken by the industrial end-user. Incentives
by utilities have proven to be essential in motivating industrial
end-users to pursue efficiency improvements. These compressed air
measure incentives should be offered using a custom approach for system
improvements and a prescriptive approach for the most common types of
CAEE measures such as nozzles, controls, etc.