The investment arm of IKEA owner Ingka Group has expanded its renewable energy acquisitions by purchasing a ready-to-build wind farm and solar park, located in north-western Poland.
The new agreement has been signed with OX2, who has developed both projects that have a combined capacity of 92MW and are expected to be fully operational by the end of 2024.
The total value of the transaction is €190m and will secure long-term access to renewable energy for IKEA Retail operations and its value chain partners in Poland.
The investment will help to further reduce the IKEA climate footprint across the value chain and support a broader transition to a net-zero society, Ingka added.
Ingka Investments already owns and operates six wind farms with a total capacity of 180MW in Poland producing 450GWh per year, well in excess of the electricity consumption of the Polish IKEA Retail and Distribution.
The total value of the transaction with OX2 is €173m.
Ingka Investments managing director Krister Mattsson 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 €2.9bn 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 €6.5bn as the next step towards 100% renewable energy across the value chain.
OX2 chief executive Paul Stormoen: “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.”
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 2.3GW, 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.