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OK, the Ragged Chute setup is sort-of free. The energy can be provide by the 17 meter difference between the inlet height and outlet height of the flowing water. This difference in potential energy can provide power -- the supply of water at the inlet is provided (indirectly) by the sun, as it evaporates water and causes rain which indirectly moves the water back uphill. More energy goes into the system than comes out as compressed air, but the energy flux from the sun doesn't cost anything. I grew up in Houghton, Michigan. This is right in the middle of the area where copper was mined extensively. With the possible exceptions of the Cliff mine, and maybe the Quincy mine, there were no readily available waterfalls or other convenient combinations of flowing water and geographical height differences to exploit in this way. So that's why I figured the air produced by such an arrangement, at least in Michigan, was not "free", since they'd have to dump water down a mine shaft to get the energy. The deepest copper mines ended up at 5000+ feet below the surface. Since the area is surrounded by Lake Superior, you can easily imagine how much water they had to pump out of these mines, and how much energy they had to spend to keep them de-watered. The cost of energy to run air compressors was quite small compared to the cost to run the pumps.
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