IKEA Ventures into Renewables, Invests in South Korea and Japan

Ingka, the majority owner of IKEA stores worldwide, is venturing into renewable energy investments in South Korea and Japan for the first time. Its investment arm, Ingka Investments, has become a major owner of renewable energy assets in Europe, aiming to decarbonize its business and supply chain.

According to Peter van der Poel, managing director of Ingka Investments, the company is actively seeking investment opportunities in South Korea and Japan, in addition to Europe. While exploring various types of renewable energy investments, offshore wind appears to be the most promising option. Currently, Ingka has no wind or solar investments in South Korea or Japan. Due to the high cost of land in these countries, offshore wind projects may offer the most viable entry into these markets.

Japan has ambitious goals for offshore wind power, aiming for 10 gigawatts (GW) of capacity by 2030 and up to 45 GW by 2040. In March, the Japanese government expanded areas for turbine installation to include exclusive economic zones (EEZ). Ingka Investments has allocated 7.5 billion euros for renewable energy investments by 2030, with 4 billion euros already committed. The company currently owns 2.5 gigawatts (GW) of renewable energy capacity.

Despite challenges such as higher costs, inflation, and supply chain disruptions, Ingka is taking a long-term perspective on offshore wind investments. Van der Poel emphasized the importance of offshore wind in both Ingka's decarbonization efforts and Europe's energy transition.