Panevo Case Study: Compressed Air System Replacement
Case Study · Energy Optimization

Compressed Air System Replacement

Dairy Processing Facility  ·  Ontario, Canada  ·  24/7 Operations

Project Type
Audit, Compressor Replacement & M&V
Baseline Energy Use
~4,100 MWh/yr
Project Duration
8 Months
Simple Payback
1.02 Years (net incentive)
The Challenge

Compressed air is a key service at this 24/7 dairy processing operation, with demand peaking at over 2,000 CFM. A Panevo audit discovered that three aging 200 HP water-cooled rotary screw compressors were operating inefficiently, resulting in electricity consumption equivalent to almost 18% of the site's total usage. Once-through city water cooling added substantial water costs, while two older, air-purge desiccant dryers further affected system efficiency.

Compressor room: new installation
Panevo's Approach
1
Study
Baseline sub-metering & funded engineering study
2
Design
Right-sized equipment, multi-vendor LCA & incentive app
3
Implement
Turnkey implementation with minimal site interaction & zero system downtime
4
Verify
12-month IPMVP M&V with metered data to secure incentive
Proven Results
41%
Reduction in compressed air energy use
$427K
Annual cost savings (electricity + water)
5%
Reduction in facility water consumption
45%
Of project cost funded by IESO incentive
System Performance
<20
kW / 100 CFM
Verified post-installation Specific Energy Consumption
System performance data

Verified Specific Energy Consumption: Post-installation metering confirms the new system operates at industry-leading efficiency, validating the equipment selection and system design.

The Solution

Right-sized compressor fleet: Properly sized fixed-speed and variable-speed rotary screw compressors matched to the facility's load profile, eliminating chronic unloaded operation and delivering industry-leading system efficiency.

Air-cooled equipment with heated blower purge dryers: Elimination of once-through municipal water cooling and replacement of inefficient air-purge desiccant dryers, reducing both energy and water operating costs.

Multi-vendor lifecycle cost analysis: A rigorous cost-benefit assessment across vendors and configurations gave the client the information needed to make a confident, informed investment decision.

Custom sub-metering infrastructure: Dedicated power and flow metering deployed across all system components for IPMVP compliant verification and full incentive recovery.

Hurdles Overcome

24/7 live facility: All installation work was phased and sequenced around active production, with creative line tie-ins to ensure no disruption to site operation during the 8-month implementation.

Utility program compliance: Panevo managed the full IESO Save on Energy incentive application, technical submissions, and a 12-month IPMVP Option B verification program, along with ensuring $360,000 in funding was secured for the client.

Installed compressors with dryers