I dug a hole for the drain for my HVAC unit about the size of a five gallon bucket, filled it with gravel. Lots more water than your compressor, never runs out in the yard. Right beside the basement wall and no problem.
My compressor is in a storeroom that shares a common wall with the workshop. It has an automatic drain that opens when power is turned on and at a set time interval as long as it has power. There is normally pressure in the tank at all times. I’m in a high humidity area so the compressor collects lots of water. Running the discharge through an outside wall wouldn’t work because I like the neighbors. I’ve been thinking about building a trap made of a 5 gallon bucket and some rocks in the bottom. The air/water would enter through the side at the bottom. Maybe just 6” or so of rocks, just to slow and disrupt the airflow. A cartridge type filter on the lid would vent the bucket and contain any errant water.
I'm not saying that you should or your shouldn't vent outdoors for a bunch of reasons, but the air in the compressor will have no issues pushing the drainage up to a level where it's a lot easier to get through an outside wall....
one more thing about this.. it smells awful. My bedroom is above the area in the basement. So venting would be close by if I poked a hole outside..
When I open the windows I would not like to have that under the window.
I think a baffled pipe like a suppressor is sort of the right idea but think big. Build it based on 3" pvc pipe. Air/water mix enters at the top and the pipe is tilted 45 deg downward angle. An opening at the bottom to drain the water and air. put some baffles in the pipe to cause the water to drip/run slowly to the bottom drain exit. Do not close off the drain off so no pressure builds up in the PVC. or something like this.
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