Ingka Investments expands its renewable energy portfolio

Ingka Investments already owns and operates 6 wind farms with a total capacity of 180 MW in Poland producing 450 GWh per year, well in excess of the electricity consumption of the Polish IKEA Retail and Distribution. The new agreement has been signed with OX2, a leading firm in large-scale onshore wind and solar power, who has developed both projects that are expected to be fully operational by the end of 2024. The total value of the transaction with OX2 is EUR 173 million.

Krister Mattsson, Managing Director, Ingka Investments said: “We are delighted to further grow our renewable energy portfolio in Poland. This investment represents another important step for Ingka Investments as it will mean a further reduction of the climate footprint of IKEA Retail including distribution and logistics, and also IKEA value chain partners based around the country. Having recently invested in renewable energy in Spain and Germany, this investment demonstrates our continued commitment to invest in countries where IKEA Retail operates and to increase the share of renewable energy across the IKEA value chain.” 

Since 2009 Ingka Group has invested EUR 2.9 billion into renewable energy projects in wind and solar power, enabling the company to generate more renewable energy than it consumes across its global operations. Entering a critical decade for climate action, Ingka Investments has committed to accelerating its investments in renewable energy to EUR 6.5 billion as the next step towards 100% renewable energy across the value chain.

“Solar power is a key part of OX2’s strategy to diversify our portfolio. Solar power will also play a central role in the energy mix of the countries we are active in and OX2 wants a leading role in accelerating this development. I am extra happy that Ingka Group is the buyer of our first solar project as we continue to build on the strong relationship established over the 12 years we have worked together,“ says Paul Stormoen, CEO, OX2 AB.

Today, Ingka Group owns and manages 575 wind turbines in 17 countries, 20 solar parks and 935,000 solar panels on the roofs of IKEA stores and warehouses. Together, our total renewable energy power totals more than 2.3 Gigawatt, equivalent to the annual consumption of over 1.25 million European households. By 2025, Ingka Group is aiming for the electricity consumption in its operations to be 100% renewable.

To achieve this consumption target, Ingka Investments continues to expand its renewable energy partners in Europe and North America plus targeting more key countries like Australia, Japan, South Korea, and India.

IKEA is committed to becoming climate positive** by 2030 by reducing more greenhouse gas emissions than the IKEA value chain emits while growing the IKEA business. IKEA is committed to the Paris Agreement and to contribute to limiting the global temperature rise to 1.5°C above pre-industrial levels. As the biggest retailer in the IKEA franchisee system, Ingka Group has an important part to play by reducing the climate footprint in its operations, customer deliveries and customer travel, as well as providing circular services to customers.

FACTS:
Wind Farm location Wysoka. Total installed effect: 63 MW, with an estimated annual production of 181 GWh. Turbines: 11 N149 5.X, with a hub height of 125 metres.

Solar farm location Recz. Total installed effect: 29 MW, with an estimated annual production of 31 GWh

ABOUT OX2:  
OX2 develops, constructs, and sells onshore and offshore windfarms and solar PV farms. OX2 also offer management of wind- and solar farms after completion. OX2’s project development portfolio consists of in-house developed as well as acquired wind and solar projects in various phases of development. The company is also active in developing projects based on other renewable energy technologies, such as hydrogen and energy storage. OX2 is operating on eleven markets in Europe: Sweden, Norway, Finland, Estonia, Lithuania, Poland, Romania, France, Spain, Italy and Greece. Sales in 2021 was about 5 billion SEK. The company has almost 300 employees and is headquartered in Stockholm, Sweden. OX2 is listed on Nasdaq Stockholm since 2022. www.ox2.com

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Read more about Ingka Group’s sustainability performance and commitments in the new Annual & Sustainability Summary report – Reporting | Ingka Group.

*The total investment transaction value of EUR 190 million includes a transaction value of EUR 173 million to OX2 and the remainder to other stakeholders involved in the original wind and solar project company.

**IKEA climate positive means to reduce more greenhouse gas (GHG) emissions than the IKEA value chain emits by 2030, while growing the IKEA business. IKEA is committed to the Paris Agreement and to contribute to limiting the global temperature rise to 1.5°C above pre-industrial levels. This includes a commitment to halve the absolute net GHG emissions from the total IKEA value chain by 2030. We will achieve this by drastically reducing GHG emissions through science-based targets and by removing carbon from the atmosphere through natural processes and storing it in land, plants and products through better forest and agriculture management within the IKEA value chain. We will contribute to further greenhouse emission reductions in society by going beyond IKEA, such as enabling customers to generate renewable energy at home. Read more about the IKEA commitment here.