Industrial Technologies Program

BestPractices BestPractices Case Study Case Study

BENEFITS

• Saves $141,500 per year

• Saves 1,559,000 kWh annually

• Reduces maintenance costs

• Improves air quality

• Achieves a 1.2-year simple payback

APPLICATIONS

Compressed air systems are found throughout 

industry and can consume a significant portion of 

the electricity used by manufacturing plants. 

Upgrading worn and inefficient compressed air 

components within a system-level strategy to 

improve system efficiency can yield energy 

savings and better performance.

Raytheon: Compressed Air System Upgrade Saves Energy 

and Improves Performance

Summary

In 2003, Raytheon Companyʼs Integrated Defense Systems business upgraded 

the efficiency of the compressed air system at its Integrated Air Defense Center 

(IADC) in Andover, Massachusetts. The project included the replacement of worn 

compressors and dryers, the installation of a more sophisticated control strategy, 

and an aggressive leak detection and repair campaign. These measures significantly 

improved the systemʼs efficiency and led to important savings in energy and 

maintenance costs. The total cost of implementing the project was $342,000, 

but a $174,000 incentive payment from National Grid, a utility service provider, 

effectively reduced it to $168,000. With total annual energy and maintenance cost 

savings of $141,500 and energy savings of 1,559,000 kWh, the simple payback is 

1.2 years.

Company/Plant Background

Based in Waltham, Massachusetts, Raytheon was founded more than 80 years 

ago as a maker of radio tubes. The company began developing radar systems 

in the 1940s and has since grown into a major manufacturer of defense-related 

electronics. In addition to producing high-technology, defense-related electronics, 

the company converts such technologies for use in commercial and residential 

applications. Today Raytheon operates in many strategic business areas, including 

government and commercial electronics, space, information technology, technical 

services, and business aviation and special mission aircraft. It employs more than 

78,000 people and has annual revenues of $18 billion.

Raytheon has long been known as a leader in conserving natural resources and 

protecting the environment. The company has been an active Energy Star® 

partner since 1999, and it was recognized in 2003 by the U.S. Environmental 

Protection Agency and the U.S. Department of Energy (DOE) as a “Partner of the 

Year.” Energy-related issues receive critical attention at all Raytheon locations, 

particularly those with manufacturing operations.

At Raytheonʼs IADC, compressed air is important for the plantʼs production 

processes because it supports many precision operations as well as a variety 
Industrial Technologies Program

of pneumatic tools and air-operated 

cylinders. Before this project was 

implemented, the plantʼs compressed 

air system was served by four aging, 

lubricant-injected, rotary screw 

compressors totaling 1,050 horsepower 

(hp). This compressed air system 

generated an average of 1,850 standard 

cubic feet per minute (scfm) and sought 

to maintain a system pressure level of 

105 pounds per square inch gauge (psig) 

so that end-use applications would have 

95 psig air. 

Project Overview

Conscious of the need to remain 

competitive, the company established 

an energy management program at the 

IADC facility many years ago. After 

attending a Compressed Air Challenge 

(CAC) workshop, plant personnel 

elected to commission a system-level 

audit of the compressed air system to 

determine how it could be optimized. 

The timing was opportune because the 

plant was scheduled to be reconfigured 

in the near future. To review the system, 

plant engineers worked with Energy 

& Resource Solutions (ERS), a DOE 

Qualified Specialist based in Haverhill, 

Massachusetts. ERS used the AIRMaster+ 

software tool to gauge the systemʼs efficiency, evaluate the leak load, and obtain the baseline data against 

which the results of the project could be measured. 

The evaluation found that the existing compressors did not operate efficiently, for several reasons. 

First, they were individually controlled. One unit was in a separate room, so when it operated it often 

reacted to control pressures that were different from those affecting units in the other room. Second, the 

compressorsʼ onboard controls did not function properly, and this caused two compressors to operate 

at full load during conditions in which they should have been operating at part load. Third, because the 

compressors were installed in the early 1980s, they were near the end of their useful lives. In addition, 

a thorough ultrasonic leak detection campaign found that more than 400 leaks in the system were 

consuming as much as 750 scfm, or 40% of the systemʼs normal output. 

A compressed air dryer at the Raytheon plant.
BestPractice Assessment Case Study

Project Implementation

Using recommendations from 

the ERS evaluation, the IADC 

engineers and operations 

personnel initiated a project 

that would bring the systemʼs 

efficiency up to the level 

estimated with AIRMaster+. 

They replaced the existing 

compressors with two 250-hp 

lubricant-free rotary screw 

compressors and located them 

in one room. They installed a 

multiple compressor network 

control system to effectively 

modulate these compressors. 

They also replaced the dryers 

and installed a large storage 

receiver to replace two older 

ones. Because the plantʼs air demand was stable, pressure stabilization devices were not necessary. 

Finally, staff at the IADC facility repaired the leaks that were identified and tagged during the 

evaluation. Their work eliminated more than 700 scfm of the systemʼs leakage. 

Project Results

The project improved the systemʼs 

efficiency, which yielded important 

energy savings. Before the project 

was implemented, the IADC facility 

depended on the operation of one 

250-hp and one 350-hp compressor 

simultaneously to support a demand 

of 1,850 scfm. The plant currently 

operates one 250-hp compressor at 

full load and a second 250-hp unit 

at part load to deliver 1,400 scfm. In 

addition, because the pressure drop 

across the system declined, the plant 

needs to maintain a system pressure 

of only 100 psig. Furthermore, the 

systemʼs air quality is better.

AIRMaster+

AIRMaster+ is an assessment and analysis software 

tool that enables industrial users to optimize equipment and 

improve operations and maintenance practices. It helps to 

maximize the efficiency and performance of compressed air 

systems. Using plant-specific data, the software effectively 

evaluates supply-side operational costs for various equipment 

configurations and system profiles. It provides accurate 

estimates of potential savings from various energy efficiency 

scenarios and calculates associated simple payback periods. 

AIRMaster+ was developed by DOEʼs Office of Energy 

Efficiency and Renewable Energy (EERE); please see 

www.oit.doe.gov/bestpractices/factsheets/airmaster.pdf for 

more information, and visit www.oit.doe.gov/bestpractices/

steam/airmaster.html to download the software.

Raytheon’s plant in Andover, Massachusetts.
Industrial Technologies Program BestPractices is part of the Industrial Technologies 

Program, and it supports the Industries of the 

Future strategy. This strategy helps the country’s 

most energy-intensive industries improve their 

competitiveness. BestPractices brings together 

emerging technologies and energy-management 

best practices to help companies begin improving 

energy efficiency, environmental performance, 

and productivity right now.

BestPractices emphasizes plant systems, where 

significant efficiency improvements and savings 

can be achieved. Industry gains easy access to 

near-term and long-term solutions for improving 

the performance of motor, steam, compressed 

air, and process heating systems. In addition, 

the Industrial Assessment Centers provide 

comprehensive industrial energy evaluations to 

small- and medium-size manufacturers.

Because both lower compressor capacity and reduced compressor 

operating time are now required, the plant saves $140,000 

(1,559,000 kWh) in annual electricity costs. Also, because the new 

compressors are less maintenance-intensive, annual maintenance 

savings are $1,500, making the total savings $141,500 per year. 

Total project costs were $342,000, but with the incentive payment 

of $174,000 from National Grid, project costs effectively became 

$168,000, yielding a 1.2 year simple payback. The incentive payment 

was conditional and depended upon a successful reduction in energy 

consumption, as estimated by ERS using AIRMaster+ during the 

evaluation. Once the project was complete, measured energy use 

by the compressed air system was 6% under the predicted values 

in the AIRMaster+ scenario, which satisfied the criteria for success 

established by National Grid.

Lessons Learned

Using software tools can be very valuable in optimizing industrial 

system efficiency. The use of AIRMaster+ allowed the Raytheon 

IADC to evaluate several “what if” scenarios before acting to improve 

the efficiency of its compressed air system. AIRMaster+ also proved 

useful as a validation tool once the project was completed. The toolʼs 

estimated energy consumption levels established a reference point 

for Raytheonʼs utility service provider, National Grid, to determine 

the size of the incentive it could offer. By using a system-level 

approach, Raytheon engineers optimized their compressed air system 

to a degree that exceeded the compressed air energy consumption 

calculations predicted by AIRMaster+. This strategy has yielded 

important energy savings and better system performance.

A Strong Energy Portfolio 

for a Strong America

Energy efficiency and clean, renewable 

energy will mean a stronger economy, a 

cleaner environment, and greater energy

independence for America. Working with 

a wide array of state, community, industry, 

and university partners, the U.S. Department 

of Energy’s Office of Energy Efficiency 

and Renewable Energy invests in a diverse 

portfolio of energy technologies.

DOE/GO-102005-1935

April 2005

PROJECT PARTNERS

Raytheon Company

Andover, MA

Energy & Resource Solutions

Haverhill, MA

National Grid

Northborough, MA

FOR ADDITIONAL INFORMATION, PLEASE CONTACT:

EERE Information Center

1-877-EERE-INF

(1-877-337-3463)

www.eere.energy.gov

Visit our home page at

www.eere.energy.gov/industry

Industrial Technologies Program

Energy Efficiency and Renewable Energy

U.S. Department of Energy

Washington, DC 20585-0121

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