OX2 sells stake in its first offshore wind projects in Sweden and updates 2022 earnings forecasts for INGKA Investments, the company owned by the largest owner and operator of the IKEA store chain, is acquiring a 49% stake in three projects.

The projects will have the potential to reach a total installed capacity of up to 9,000 MW. OX2 will receive an initial payment of SEK 610 million. Once the permit for the projects has been obtained and if both parties reach an agreement on their implementation, OX2 will receive the previously agreed price equivalent to up to 100,000 Euros per MW for 49 percent of planned total capacity. The transaction is expected to positively impact operating income of MSEK 584 in the second half of 2022. Upon completion of the transaction, OX2 expects operating income for the full year 2022 to be just over MSEK 1,000.

The three projects are: (1) Galatea-Galene, located off the coast of Halland, (2) Triton, located off the coast of Skåne and (3) Aurora, located off the coast of Gotland and Öland. The projects have the potential to produce a total of up to 38 TWh once operational, equivalent to more than 25% of the electricity consumed in Sweden in 2021. Projects are underway, and construction permit applications for major wind farms have been submitted.

“We have received a lot of interest from the market to join the important mission of introducing large-scale offshore wind generation to the Swedish energy system. I am very happy and proud that we entered an agreement with Ingka Investments, and based on our history of jointly developing 10 wind and solar projects, we are confident that this partnership will be successful. Once built, the wind farms will create long-term jobs and business opportunities both locally and regionally, as demand for access to renewable electricity is growing”, says Paul Stormoen, CEO of OX2 AB.

“This collaboration is a bold move in expanding our investment activities with a purpose to reduce our carbon footprint well beyond our own consumption and across our value chain. We are increasing our global investments and commitments in renewable energy from more than €3 billion today to €6.5 billion by 2030”, says Peter van der Poel, Managing Director at Ingka Investments.

OX2 spent about €200 million on development costs for the three aforementioned projects. The transaction will allow the company to further develop its offshore organization, capabilities and, upon completion, development costs will be divided according to the respective parties’ share.

As of today, OX2 has a significant offshore wind development portfolio. The partnership in three Swedish wind projects is the first of its kind for OX2 and the first offshore wind transaction. OX2 intends to continue using project-specific partnerships for offshore wind development.

Entering a pivotal decade for climate action, Ingka Investments has pledged to increase their investment in renewable energy to €6.5 billion, as another step toward 100% renewable energy across the value chain. Since 2009, Ingka Investments invested more than €3 billion in renewable energy projects in wind and solar power, resulting in the group generating more renewable energy than it consumes in its global operations. The goal is to produce 15TWh and support reduction in the group’s climate footprint by 6M tons of CO2 compared to a baseline in its fiscal year 2016.

Investments in offshore wind energy can make an important contribution to Ingka Group’s ambitions to reduce its climate footprint. This is the second offshore wind investment for Ingka Investments.

Ingka Investment’s cooperation with OX2 began in 2010. Since then, Ingka Investments has acquired 10 projects from OX2 in Sweden, Lithuania, Finland and Poland.

Source: Ingka Investment and OX2