IKEA is investing in a $2 billion Australian wind farm, and it’s not flat-packed

Swedish furniture company and eternal relationship tester IKEA has just announced its investment into a $2 billion wind farm in Victoria.

IKEA’s investment arm, Ingka Group, has purchased a 15% stake in the Golden Plains Wind Farm, which is located near Geelong. It is joined by TagEnergy, a French investment firm focused on renewable projects.

The wind farm has a planned capacity of 1.3GW and once completed it will provide power for more than 750,000 homes. According to IKEA, this is the equivalent of every home in regional Victoria.

IKEA’s stake will also come with up to 15% pro-rata on the electricity that comes from the farm, which will contribute to Ingka’s climate footprint.

In addition to Golden Plains, TagEnergy is also planning the construction of a 576MW and 300MW battery storage facility to help with the flexibility and stability of the electricity grid.

“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,” Peter van der Poel, managing director of Ingka Investments, said in a statement.

“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.”

This is the company’s first foray into a large scale renewable utility project in Australia. But much like a Billy Bookcase purchase, it cannot stop at just one. It plans to further expand into similar investments across the Asia-Pacific region.

It has also committed to widening its renewable energy investments to €6.5 billion ($10 billion). Since launching in 2009, Ingka has invested €3 billion ($4.6 billion) to renewable projects.

But despite this being its first large-scale project investment, IKEA has been investing in renewables here in Australia for a number of years. Sustainability and becoming climate positive by 2030 have been among its goals for a long time. It also aims to hit net-zero by 2050 at the latest.

Back in 2020, the company began offering its own solar panels for purchase and it has a fleet of EV delivery trucks operating in Sydney, Melbourne and Brisbane.

And back in 2018, it encouraged a cyclical economy within its stores by offering store vouchers to customers who bring back used IKEA products.