Ikea invests $373 million in solar park projects

Ingka Group, the firm that owns most IKEA stores worldwide, has purchased nine solar photovoltaic (PV) park projects in Germany and Spain from developer Enerparc for a total of $373m, Reuters reports.

The furniture giant announced it was buying the projects on Wednesday, which will have a combined capacity of 440 megawatts.

“The expected production will be sufficient to cover all IKEA stores and warehouses in the two countries, making the operations of Ingka Group carbon neutral,” the company said in a statement.

The company is aiming to reduce greenhouse gas emissions by more than its entire value chain emits by 2030.

The projects are at early stages and are expected to become ready for construction at the end of 2022, continuing into 2023. The construction itself will take roughly six months.

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“We are delighted to be announcing this important initiative to enable renewable electricity consumption in Germany and Spain, which is another step in accelerating our energy production in Europe and North America,” Ingka Investments managing director Krister Mattsson said.

“With our own solar parks and wind farms, we want to make renewable energy available throughout the IKEA value chain and beyond.”

Enerparc chairman and chief executive Christoph Koeppen added: “This partnership is in line with our dedicated strategy to develop a total of 10GW solar PV plants for our own portfolio and third-party portfolios until 2030.”

“It is a wonderful signal that Ingka Group and Enerparc have joined forces to contribute to a world of carbon-neutral energy generation.”

Ingka Group currently owns 547 wind turbines in 14 countries, 10 solar parks and 935,000 solar panels on the roofs of IKEA stores and warehouses, which together produce more than 4 Terawatt hours of electricity.

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