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A compressed-air vehicle (CAV) is powered by an air engine, using compressed air, which is stored in a tank. Instead of mixing fuel with air and burning it in the engine to drive pistons with hot expanding gases, compressed-air vehicles use the expansion of compressed air to drive their pistons. One manufacturer claims to have designed an engine that is 90 percent efficient.

Engine
Main article: Compressed air engine
Typical compressed air engines use one or more expander pistons or rotary expanders. It is necessary to heat the air or the engine during expansion. For example, the Mekarski system heated compressed air with steam.
Tanks
Main article: Compressed air tank
The tanks must be designed to safety standards appropriate for a pressure vessel, such as ISO 11439.
The storage tank may be made of metal or composite materials. The fiber materials are considerably lighter than metals but generally more expensive. Metal tanks can withstand a large number of pressure cycles, but must be checked for corrosion periodically.
One company stores air in tanks at 4,500 pounds per square inch (about 30 MPa) and hold nearly 3,200 cubic feet (around 90 cubic metres) of air.
The tanks may be refilled at a service station equipped with heat exchangers, or in a few hours at home or in parking lots, plugging the car into the electrical grid via an on-board compressor. The cost of driving such a car is typically projected to be around €0.75 per 100 km, with a complete refill at the "tank-station" at about US$3.
Compressed air
Compressed air has a low energy density. In 300 bar containers, about 0.1 MJ/L and 0.1 MJ/kg is achievable, comparable to the values of electrochemical lead-acid batteries. While batteries can somewhat maintain their voltage throughout their discharge and chemical fuel tanks provide the same power densities from the first to the last litre, the pressure of compressed air tanks falls as air is drawn off. A consumer-automobile of conventional size and shape typically consumes 0.3–0.5 kWh (1.1–1.8 MJ) at the drive shaft per mile of use, though unconventional sizes may perform with significantly less.
Emission output
Like other non-combustion energy storage technologies, an air vehicle displaces the emission source from the vehicle's tail pipe to the central electrical generating plant. Where low emissions sources are available, net production of pollutants can be reduced. Emission control measures at a central generating plant may be more effective and less costly than treating the emissions of widely dispersed vehicles.
Since the compressed air is filtered to protect the compressor machinery, the air discharged has less suspended dust in it, though there may be carry-over of lubricants used in the engine. The car works when gas expands.