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Intercoolers lower the temperature of air going from one stage of a compressor to another, it increases the efficiency as the air becomes more dense. As the recieving stage is compressing cooler air as result, there is less heat produced in the succeding stage. If the intercooler has a large surface area, the temperature can approach ambient temperatures, and moisture my drop out, requiring a method for it's removal; if not a slug of water could damage the recieving stage. Efficiency increases can be had >15%

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Q: What is the purpose of an intercooler in an air compressor?
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