IKEA franchisee to buy stake in USD-1.4bn wind project in Victoria

The investment arm of Netherlands-based Ingka Group, the largest franchisee of Swedish furniture retailer IKEA, will buy a 15% stake in the AUD-2-billion (USD 1.43bn/EUR 1.3bn) Stage One of the 1,300-MW Golden Plains wind project in Victoria, Australia.

Ingka Investments said on Wednesday that the acquisition aligns with its plan to boost renewables spending and expand the renewable energy portfolio of its parent in the Asia-Pacific region. The move represents its first major investment in renewable energy in the country.

The deal is pending clearance from the Foreign Investment Review Board. Its value was kept under wraps.

The Golden Plains complex will be built near Geelong by Aussie renewable energy enterprise TagEnergy. The construction of its 756-MW first stage is due to begin early this year after financial close on the project was reached at the end of November.

The Stage One wind farm will be equipped with 122 units of Vestas’ V162-6.2 MW turbines and is slated to begin operations by the end of 2025. Vestas will handle the engineering procurement and construction (EPC).

Pro-rata to the ownership stake, Ingka Investments will be able to claim up to 15% of the wind farm’s 2-TWh annual output and renewable energy attributes and link it to the local Ingka Climate Footprint. The move will back the Ingka Group’s goal to cut its carbon footprint.

In 2021, Ingka Group, which operates more than 370 IKEA stores globally, pledged to pour EUR 6.5 billion (USD 7.2bn) in order to reach 100% renewable energy across the value chain.

(EUR 1.0 = USD 1.102)

(AUD 1.0 = USD 0.714/EUR 0.648)

Choose your newsletter by Renewables Now. Join for free!