Ingka Group, the Swedish holding company that owns the majority of IKEA stores worldwide, has acquired a 15 per cent share in the Golden Plains wind farm in Victoria, Australia. Reportedly, the company also plans to engage in green energy projects in South Korea, China, Japan, and India. TagEnergy is constructing the Golden Plains facility, and the first phase of the project, with a 756 MW capacity, has completed financial close. The first phase of the project, which will cost $1.4 billion, is planned to start operating in the first quarter of 2025.

The investment by Ingka Group is the first corporate direct investment in a sustainable energy project that will supply electricity to the Australian grid. In the project’s second phase, which has the capacity to produce 576 MW of wind energy and incorporate a 300 MW battery, TagEnergy would welcome more investment from Ingka Group. Currently, Ingka Group has 935,000 solar panels on the roofs of IKEA stores and warehouses, 575 wind turbines, and 20 solar parks.

In August 2022, OX2 sold its 49 per cent stake in three offshore wind projects in Sweden with a combined capacity of 9 GW to Ingka Investments, the investment division of the Ingka Group. OX2 would receive an initial payment of $56 million in accordance with the provisions of the agreement. 

REGlobal’s Views: This is Ingka’s first renewable energy investment in Australia and is a step to support the company’s goal to reach net-zero by 2050. The company also intends for 100% renewable energy across the value chain and this massive investment will also help it to support value chain partners with renewable energy.