Ingka Buys Stake in 6 GW Finnish Offshore Wind Portfolio from OX2

May 12, 2023, by Adnan Durakovic

Swedish developer OX2 has agreed with Ingka Investments to sell a 49 per cent stake in its three offshore wind projects in Finland with a total installed capacity of about 6,000 MW.

The three projects are Halla, Laine, and Tyrsky located in the Gulf of Bothnia in the Finnish Exclusive Economic Zone.

With a combined potential capacity of approximately 6,000 MW, the total production could amount to up to 29 TWh once operational, corresponding to more than one-third of the electricity consumed in Finland in 2022,m OX2 said.

OX2 added that Halla and Laine are among the most advanced offshore wind projects in Finland and have the potential to become operational by the end of this decade.

The sale is expected to affect OX2’s net revenues and operating profit by SEK 390 million (EUR 34.6 million), and SEK 300 million, respectively. Following successful permitting, and if both parties at that point in time agree to continue the development, OX2 will receive a pre-agreed price equivalent of SEK 0.8 million per MW for the 49 per cent of the planned capacity.

Ingka Investments is the investment arm of Ingka Group, the largest IKEA franchisee with 367 IKEA stores in 30 markets.

”This cooperation is a further bold move in expanding our investment activities to address climate footprint reduction well beyond our own consumption and into our value chain. We are increasing our global investments and commitments in renewable energy from over EUR 3.5 bn today to EUR 6.5 bn before 2030,” said Peter van der Poel, Managing Director of Ingka Investments.

Last year, Ingka Investments acquired 49 per cent of three of OX2’s Swedish offshore projects with a combined capacity of 9 GW, and OX2 has previously sold nine onshore wind farms and one solar farm to Ingka Group.

”We believe that large scale offshore wind production will be a powerful contributor to meet the growing energy demand in the region. I am very happy to reinforce our partnership and we look forward to continuing to drive the transition to renewable energy together with Ingka,” said Paul Stormoen, CEO of OX2.

The transaction is in line with OX2’s strategy to diversify risk and capitalize on the value creation in offshore wind throughout the development phases.

Following the completion of the transaction, the development costs for the projects will be shared according to the respective party’s ownership. The transaction is subject to customary competition merger filing requirements and is expected to be completed within two months.