Compressed air users, buying “green” can boost your cash flow

As part of the government Enhanced Capital Allowance ( ECA ) scheme, Parker domnick
hunter energy saving compressed air drying products complete with Dewpoint Dependent Switching (DDS) have been added to the Energy Technology List ( ETL ) with effect fro

As part of the government Enhanced Capital Allowance ( ECA ) scheme, Parker domnick hunter energy saving compressed air drying products complete with Dewpoint Dependent Switching (DDS) have been added to the Energy Technology List ( ETL ) with effect from December 1st, 2008.

The ECA scheme for Energy Saving Technologies is a straightforward way for a business to improve its cash flow through accelerated tax relief, by encouraging investment in energysaving plant or machinery specified in the ETL which is managed by the Carbon Trust on behalf of the Government. Low cost temptation When replacing compressed air purification equipment, businesses are often tempted to opt for that with the lowest capital cost, however, such immediate cost savings can prove to be a false economy. By considering the life cycle cost before investing in equipment can actually help reduce overall costs and improve cash flow in the longer term.

The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure. This means that businesses can write off the whole cost of the equipment against
taxable profits in the year of purchase. This can provide a cash flow boost and an incentive to invest in energy saving equipment which normally carries a price premium when compared to less efficient alternatives.

Energy saving controls for desiccant air dryers An appropriate example is the provision of compressed air desiccant dryers where the regeneration costs can be significantly wasteful of energy if not optimised correctly. Compressed air desiccant air dryers are used on approximately 15% of industrial sites to remove the moisture present in the compressed air before it is used.
This type of air dryer is energy intensive, but it removes significantly more moisture than a refrigerant air dryer and is usually specified for exposed installations or special applications, for example, in circumstances where there is a risk of bacterial growth in the piping and the compressed air coming into direct contact with food products.

A Parker domnick hunter PNEUDRI desiccant air dryer fitted with DDS Energy Saving Controls will operate the dryer in a manner that eliminates unnecessary desiccant regeneration cycles to
provide considerable energy savings. The amount of energy that can be saved by fitting moisture-sensing control systems varies considerably depending on the application, and drying costs through the use of moisturesensing control systems can be as high as 80% of total operational costs.

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