Ikea Parent Group Invests in an Australian Windfarm

The Ingka Group, which owns Ikea, has invested in a large wind farm in Australia.

The group's investment arm has acquired a 15% stake in TagEnergy's 756MW stage one of the Golden Plains Wind Farm near Geelong, Victoria.

It is Ingka Investments' first investment in utility scale renewable energy in Australia, and it will aid in securing renewable energy access in Ikea Retail countries throughout Asia.

The overall project has a total capacity of 1.3GW and is divided into two stages.

The first stage of the project, which included 122 turbines, reached financial close in November 2022.

The facility is expected to be fully operational by the end of 2025, with all construction contracts completed.

Ingka Investments will be able to claim up to 15% of the project output of electricity and Renewable Energy Attributes, pro-rata to its ownership stake, and link it to the local Ingka Climate Footprint.

TagEnergy and the original developer Westwind are also planning the construction of stage two (576MW with 93 turbines) and a 300MW battery storage facility, which will improve the electricity grid's flexibility and stability.

Ingka Group has committed to increasing its renewable energy investments to €6.5 billion through its investment arm, Ingka Investments, as the next step toward 100% renewable energy across the value chain.

It is now seeking to expand its renewable energy portfolio in the Asia-Pacific region, where Ingka Group operates retail stores in Australia, China, India, and Japan

Peter van der Poel, managing director of Ingka Investments, said: “Sustainability investments are a growth sector, where doing good business and being a good business comes together, and therefore are also a core strategic priority for Ingka Group.

“It is about making the necessary investments to meet sustainability goals and support the IKEA transition to become climate positive and transition to a circular business model, through offering affordable solutions enabling people to live within the planetary boundaries.”