IKEA Owner Continues Acquisition Spree, Buys Stake in OX2 Swedish Offshore Wind Projects

November 29, 2023, by Adnan Memija

OX2 has agreed with Ingka Investments, the investment arm of Ingka Group, the biggest IKEA retailer, to sell a 49 per cent stake in next-generation Swedish offshore wind projects.

The transaction includes the Pleione offshore wind projects, located east of Gotland, and Neptunus, located southeast of Blekinge which amounted to 2.4 GW in OX2’s development portfolio in the third quarter of 2023.

According to the agreement, OX2 will receive an initial payment of around SEK 230 million (about EUR 20.2 million).

Following successful permitting, the company will receive a pre-agreed deferred consideration of approximately SEK 0.7 million (around EUR 0.6 million) per MW for 49 per cent of the planned capacity.

The transaction is expected to impact OX2’s operating income positively with approximately SEK 200 million (approximately EUR 17.6 million) in 2023.

OX2 and Ingka Investments are currently exploring future opportunities in the Swedish market including the project Ran located near Pleione.

Following the completion of the transaction, the development costs for the projects will be shared according to the respective party’s ownership, said OX2.

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In addition to offshore wind, the companies will investigate the establishment of offshore hydrogen production facilities and how this can enable artificial oxygenation of the Baltic Sea and thereby bring back marine life to parts of the Baltic Sea that suffer from anoxic conditions, according to OX2.

“Our next generation project pipeline, where we can combine offshore wind with hydrogen and e-fuel production, will meet the growing demand for renewable energy and enable business opportunities,” said Paul Stormoen, CEO of OX2.

This is OX2’s third offshore transaction with Ingka Investments. The previous agreements include Ingka Investments acquisitions of a 49 per cent stake in three offshore wind projects in Finland in June 2023, and in three projects in Sweden in 2022.

These transactions are in line with OX2’s strategy to diversify risk and capitalize on the value creation in offshore wind throughout the development phases, the company said.

“Our continued partnership with OX2 reaffirms our commitment to address climate footprint reduction well beyond our own consumption and into our value chain. So far Ingka Investments has invested and committed EUR 4 billion into renewable energy projects in wind and solar power,” said Peter van der Poel, Managing Director of Ingka Investments.