IKEA is Steadily Assembling its Renewable Energy Portfolio

Ingka Investments, the investment arm of the Ingka Group, IKEA’s parent company, has acquired a 49% share in three offshore wind development projects in Finland. The acquisition price for the renewables asset is reported to be €30 million.

The Swedish multinational furniture company with numerous outlets across Asia, said in a statement the projects have the potential to reach a total installed capacity of 6GW.

The three wind power projects are near Halla, Laine and Trysky in the Gulf of Bothnia in the Baltic Sea and have the potential to produce up to 29 TWh/yr combined, once operational, corresponding to as much as one-third of all electricity consumed in Finland in 2022.

Citing a critical decade for climate action, Ingka Investments has committed to expanding its investments in wind and solar power. IKEA’s parent company has emerged as a big investor in renewables globally and has said it plans to invest a total of €6.5 billion in renewables by 2030.

The group said the move is part of its next step towards enabling it to generate more renewable energy than it consumes across its global operations. The aim is to produce 15TWh and support the group’s climate footprint reduction with 6M ton of CO2 compared to the baseline in its fiscal year 2016.

Ingka Group now owns 575 wind turbines in 17 countries, 20 solar parks, and 935,000 solar panels on the roofs of IKEA stores and warehouses. Together, its total renewable energy power totals more than 2.3 GW, equivalent to the annual consumption of over 1.25 million European households.

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