Ingka Group buys stake in $2b Australian wind farm

Image credit: Ingka Group

Ingka Group, which owns the majority of IKEA stores worldwide, has acquired a 15 per cent stake in the $ 2 billion Golden Plains wind farm of TagEnergy near Geelong, Australia.

The acquisition marks Ingka’s first investment in renewable energy in Australia and circularity, supporting the Group’s ambitions based on climate science while growing the company to reach net zero by 2050 at the latest.

The overall project has a total planned capacity of 1.3GW and consists of two stages, and once complete, Golden Plains Wind Farm said it will supply sustainable energy for more than 750,000 homes.

Stage one of the project consists of 756MW (122 turbines) with an expected annual production of over 2,000 GWh/yr. 

The second phase of the project, which will include a 300MW battery storage facility and 576MW/93 turbines, is also being prepared for construction by TagEnergy and the project’s original developer Westwind.

Peter van der Poel, managing director of Ingka Investment, said the Ingka Group has made sustainability investments a top strategic goal since they are a growing industry where being a good business and performing good business go hand in hand.

“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,” the managing director noted.

Meanwhile, according to Andrew Riggs, TagEnergy’s managing partner for Australia, the company’s ability to attract a principled investment from a like-minded partner and its dedication to accelerating the global transition to net zero emissions are evidence of the success of its innovative business model.

“We are proud to join forces with an innovative, global company that shares our belief in sustainable investments with purpose,” Mr Riggs said.

Stage one of the project reached a financial close in November 2022.

It is anticipated that by the end of 2025, all construction contracts would have been completed and the facility will be fully operational.