I recommend installing your lubricator on a separate line isolated by a valve. You can run all your air tools that require lubrication off of that line and run your plasma off the non oiled line.
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We put a lot of research into our air system and have come up with something that in my experience keeps the air pretty dry. We spent money where it made sense (we installed a Milton particulate filter and desiccant pack after the compressor for example) and then saved it where we could using pex lines. No soldering of copper pipes and picked up any specialty odds and ends at out local Hose Power store.
High level we put our air through a transmission cooler with cooling fan is wired into the compressor motor. Temps at the inlet easily hit 200-300°F but the outlet temps are maybe 1-3°F above shop ambient. The transmission coolers are easily more efficient at dumping heat than the copper contraptions others have shown off, with smaller diameter internal plumbing (better air to heat sync ratio) and all those aluminum fins? On top of that they are silly cheap and easily replaceable.
After the cooler we have a water separator so that all the water we just pulled out of suspension doesn’t just get dumped into the compressor tank.
After compressor tank air goes through a particulate and oil filters, then a large desiccant filter before going through the PEX lines and to our various air tools/plasma.
If you want details, links to what we bought, etc. here is a full write up we put onto Hobby Machinist.
Dry Shop Air - Step 1 (Compressor After-Cooler) | The Hobby-Machinist
Dry Shop Air - Step 2 (Compressed Air Manifolds) | The Hobby-Machinist
Is the desiccant filter even needed at that point? How often do you have to change the desiccant?
The desiccant dryer, or a refrigerant dryer, is absolutely needed. An after cooler won’t reduce your dew point very much. You’ll want to lower your dew point further.
The primary benefit of the after-cooler is to ensure that you aren’t pumping hot, super-saturated air into your plasma system when the compressor pump is running. And on a longer job your pump will be running. Without the after-cooler you’d be saturating a desiccant dryer very quickly (a refrigerant is a better idea if you aren’t using an after-cooler).
Secondarily, an after-cooler is keeping most of the water out of your compressor tank (get an auto drain too). Tanks that go boom are no bueno.
We’re changing desiccant the equivalent of weekly (we’re part timers). We do the regen in the oven - definitely working to dry the air/lower dew point further (note: a good desiccant dryer will lower dew point more than a refrigerant dryer but with more maintenance).
I saw your post while digging around for some info on air setups, and it reminded me of my own compressor project. One thing I learned is to stick a pressure gauge near your tools, not just at the compressor—it’s a game changer for spotting pressure drops when something’s off in the line.
If you’re not using an after-cooler, it’s worth thinking about. It keeps hot air from dumping moisture into the system and stops your tank from turning into a rusty mess. Nobody wants their tank popping, right?
Oh, and if you ever hit a snag with plumbing—whether it’s for air or water—having a good plumber on call can save your butt. I usually reach pm247.co.uk. They’ve pulled me out of a jam a couple of times when I was way in over my head.