Kuehne + Nagel
- Home
- Kuehne + Nagel
IRR
18.17%5.9 Years
Payback Period689%
ROI$9M
Hydro SavingsCase Study Kuehne + Nagel
Commercial Solar Solution for Global Logistics Leader
The Challenge
Kuehne+Nagel International AG operates at the forefront of global logistics, where energy-intensive operations are critical to daily performance but contribute to high and unpredictable electricity costs. At their Mississauga flagship facility, rising energy rates and increasing consumption threatened both financial targets and long-term competitiveness. Additionally, the organisation recognised a need to proactively address environmental sustainability and to gain greater control over its energy supply by reducing dependence on local utilities.
The Solution
To address these challenges, Kuehne+Nagel partnered with Otter Energy, Ontario’s leader in commercial solar solutions. After evaluating the facility’s needs and exploring available options, they selected Otter Energy for its proven track record, integrated project delivery, and technical expertise in large-scale solar deployment. Otter Energy’s in-house engineering and construction teams designed a tailored solar array leveraging 3,000 CanadianSolar modules and Huawei inverters, ensuring optimal system performance and compliance with industry safety standards. The seamless, turn-key process—from design and procurement to construction and commissioning—minimized operational disruption and maximized project value. As Peter Vogel, Director of Business Development, noted: “Our solar solution produces 89% of KUEHNE+NAGEL electricity needs and saves them $361,080 per year.”
The Results
The completed solar energy system now supplies the majority of the site’s electricity needs, delivering immediate and ongoing financial benefits. Kuehne+Nagel realizes annual savings of $361,080, with total lifetime savings projected at $9,026,996. The project achieves a payback period of just 5.91 years and a robust total ROI of 689%. Beyond financial returns, the installation significantly reduces greenhouse gas emissions, supporting Kuehne+Nagel’s Net Zero aspirations and reinforcing the company’s position as a sustainability leader in the logistics sector.
Challenges
- High Energy Costs: The client wants to significantly decrease operational costs with solar.
- Control: This Solar project successfully creates long-term electricity on-site that is dependable and inexpensive compared to rising utility rates.
- How to Make It Happen? Otter is a fully integrated solar company that provides experienced solar solutions with a fully integrated in-house design, procurement, construction and project management team. This is the Otter Energy difference.
Solutions
- Big Solar Savings: Design and deliver a 1,335 kW DC / 1,000 kW AC solar solution to offset electricity for the next 3 decades.
- Consistent Results: The 3000 solar panels consistently produce enough electricity to offset 89% of the facility’s requirements while reducing GhG contributions and helping with Net Zero targets.
- The Otter Energy Advantage: Drawing on 16 years of experience and deep construction roots, we were able to unlock the property’s hidden value and deliver an attractive ROI.