IKEA retailer buying into 9-GW offshore wind portfolio of Sweden's OX2

Renewables developer OX2 AB (STO:OX2) said today it has agreed to shed a 49% stake in an up to 9-GW portfolio of offshore wind projects to the investment arm of Ingka Group, the biggest retailer in the IKEA franchisee system.

Under the arrangement, Ingka Investment will buy a minority interest in three projects that are under development and undergoing permission. Namely, these are the Galatea-Galene project off the coast of Halland, western Sweden, the Triton scheme in the waters off the country’s southernmost county of Skane, and the Aurora scheme off the coast of Gotland and Oland.

The capacity set to be installed through the developments is expected to generate up to 38 TWh of electricity annually, equal to 25% of Sweden’s total power consumption in 2021, OX2 said.

Under the deal, the seller will get an initial payment of SEK 610 million (USD 57.1m/EUR 57.4m) for the stake. Once the projects receive the needed approvals, it will receive up to EUR 100,000 per MW for 49% of the overall capacity.

The deal is pending regulatory clearance and is seen to be completed in two months. OX2 expects that once finalised, it will add SEK 584 million to its second-half operating profit and help it bring its full-year operating profit to slightly above SEK 1 billion.

The transaction is the second one between OX2 and Ingka Investments this year, coming on the heels of Ingka’s purchase of 92-MW ready-to-build wind farm and solar park portfolio in Poland from OX2 in June.

(SEK 10 = USD 0.936/EUR 0.941)

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