It is a surprising fact that 100% of the electrical power (energy) is converted to heat energy during the Compression process In an Air compressor & all the heat energy goes as a waste if not used judicially.In a typical compression system, the theoretical recoverable heat is 96% of the overall electrical energy consumption. It consists of heat dissipated in the oil cooler (78%) the aer cooler (13%) and the heat radiated from the drive Motor (5%). The rest 4% heat cannot be recovered since 2% radiates through the canopy and the other 2% vents inside the canopy. Keeping in mind the eﬀects of Global warming in the present environment. ELGi has come up with a system where in 96% of the waste heat generated from the compressor can be utilized for heating air (space) and heating water. This in turn eliminates the necessity to go for an additional equipment to heat water or Air, there by reducing the CO2 emission to a larger extent.