LKQ Corporation Advances Renewable Energy Strategy with Solar Project at German Logistics Hub

Rhea-AI Summary

LKQ (Nasdaq: LKQ) has signed a 20-year PPA with Ecobility Services GmbH to install a rooftop solar system at its Sulzbach-Rosenberg logistics hub in Germany.

The installation will cover more than 12,000 m² with over 6,000 photovoltaic modules, is expected to generate ~2.7 GWh annually, and could supply up to 50% of the site's electricity, saving up to 1,000 metric tonnes of GHG per year versus grid power. Ecobility will handle planning, installation, operation, and maintenance. Installation starts in October with completion targeted by mid-2026. The project supports LKQ's broader GHG reduction roadmap including energy optimization, electric fleets, and circular practices in the DACH region.

Positive

• 2.7 GWh expected annual generation
• System could cover up to 50% of site electricity demand
• 1,000 metric tonnes GHG savings per year
• 20-year PPA secures long-term renewable supply
• Project area > 12,000 m² with > 6,000 modules

Negative

• Project covers only up to 50% of site electricity demand
• 20-year PPA creates a long-term contractual commitment
• Installation timeline runs until mid-2026

Insights

Sustainability Energy Analyst

Large rooftop PPA will supply roughly half the site’s electricity and supports LKQ’s GHG reduction roadmap.

The agreement with Ecobility Services GmbH uses a 20-year PPA to deploy over 6,000 photovoltaic modules across more than 12,000 square metres, aiming to generate about 2.7 gigawatt hours annually and cover up to 50% of the Sulzbach-Rosenberg site’s electricity demand. This structure outsources capital, operation, and maintenance to the service provider while locking in long-term renewable supply, which can stabilize site-level energy sourcing and support reported emissions targets.

Key dependencies and risks include the timetable and construction execution (installation begins in October and completion is expected by mid-2026), actual generation versus the stated 2.7 GWh, and grid integration or curtailment at the site; the release notes an estimated annual avoidance of up to 1,000 metric tonnes of GHG emissions. Monitor first-year generation data and PPA terms that affect expense recognition and operating cost variability over the next 12–18 months for clarity on operational impact.

ANTIOCH, Tenn., Oct. 21, 2025 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ), today announced that it has partnered with Ecobility Services GmbH to implement a large-scale rooftop solar power system at its central logistics centers in Sulzbach-Rosenberg, Germany.

The project will be delivered through a 20-year Power Purchase Agreement (PPA), representing a key step in LKQ’s broader sustainability and long-term greenhouse gas emissions reduction strategy.

Covering more than 12,000 square metres, the system will feature over 6,000 photovoltaic modules and is expected to generate around 2.7 gigawatt hours of electricity annually, covering up to 50 percent of the site’s electrical energy demand.

The system is also capable of saving the equivalent of up to 1,000 metric tonnes of GHG emissions per year compared with conventional grid electricity.

Richard Brasher, Vice President, Sustainability at LKQ Corporation, said: “In our 2024 Sustainability Report, we committed to the exploration of PPAs in our central distribution centers to complement our long-term commitment to deliver profitable and sustainable solutions as part of our GHG emissions reduction strategy. This initiative marks a significant step in this journey.”

Ecobility Services GmbH will oversee the planning, installation, operation, and maintenance of the rooftop photovoltaic system throughout the term of the agreement. Installation is expected to begin in October and completed by mid-2026.

Nicolas Holdschik, Managing Director of Ecobility Services GmbH, said: “With our latest photovoltaic project, we are sending a strong signal for sustainable energy supply in the commercial sector together with LKQ DACH. As a long-standing partner in the PV and LED sector, we are delighted to now be pursuing this path in the PPA model and look forward with confidence to the next 20 years of successful cooperation.”

The initiative contributes to LKQ’s long-term roadmap to reduce greenhouse gas emissions. This includes site-level energy optimization, transitioning to electric fleets and the use of alternative fuels where practical, and scaling circular economy practices. The DACH region - Germany, Austria, and Switzerland - continues to play a pioneering role as a testbed for innovations that can be rolled out across LKQ Corporation’s network.

About LKQ Corporation

LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe, and Taiwan. LKQ offers its customers a broad range of OE recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.

About Ecobility Services GmbH

Ecobility Services GmbH, based in Germany, provides sustainability-focused services that help companies improve energy efficiency, adopt clean technologies, and reduce carbon emissions across commercial and industrial operations.

Contact:
Joseph P. Boutross
Vice President, Investor Relations
LKQ Corporation
(312) 621-2793

jpboutross@LKQCORP.com

FAQ

What did LKQ (LKQ) announce on October 21, 2025 about solar at Sulzbach-Rosenberg?

LKQ announced a 20-year PPA with Ecobility to install rooftop solar at Sulzbach-Rosenberg generating ~2.7 GWh/year.

How much of the Sulzbach-Rosenberg site's electricity will the LKQ (LKQ) solar system supply?

The system is expected to supply up to 50% of the site's electrical energy demand.

What are the environmental benefits of LKQ's (LKQ) German solar project?

The project could save up to 1,000 metric tonnes of GHG emissions per year compared with conventional grid electricity.

When will installation for LKQ's (LKQ) rooftop solar in Germany start and finish?

Installation is expected to begin in October 2025 and be completed by mid-2026.

What are the main technical specs of LKQ's (LKQ) Sulzbach-Rosenberg solar system?

The rooftop system will cover > 12,000 m², include over 6,000 photovoltaic modules, and generate ~2.7 GWh/year.

Who will operate and maintain the LKQ (LKQ) solar installation under the PPA?

Ecobility Services GmbH will handle planning, installation, operation, and maintenance for the 20-year PPA.