ANN ARBOR, Mich. -- UPS could save more than $7 million by harnessing landfill gas for energy, according to a team of students from the University of Michigan Ross School of Business.
The team investigated the how the company could benefit from using landfill gas to provide energy by looking at UPS' energy use, local energy and renewables markets, billing structures for energy types and costs and benefits associated with landfill gas.
UPS' Worldport worldwide air hub in Louisville, Ky., consumes more than 30 megawatts during peak operations. The facility is situated near Waste Management's Outer Loop Recycling and Disposal Facility, which already funnels landfill gas for use as energy to two other customers. The student team proposed that UPS build a 10-megawatt combustion turbine to generate electricity, powered by landfill gas from the Waste Management site.
The team predicts UPS could save $7.26 million and that the system would pay for itself in less than six years. However, the savings are contingent on the federal alternative energy Production Tax Credit.