Ingka Group, the largest IKEA franchisee globally, has recently revealed its investment plans in a portfolio of offshore wind projects located in both Ireland and the UK. The group has announced its intention to acquire a 20% stake in the offshore wind project portfolio of Source Galileo, a renewable energy company headquartered in London and Dublin.
Source Galileo is currently engaged in the development of a substantial 10 gigawatts (GW) of offshore electricity generation and hydrogen production off the northwestern coasts of Europe and has the potential to power up to one million homes.
This investment aligns with the Climate Action Plan of the respective governments, which aims to connect up to 8GW of onshore and 5GW of offshore wind power to the grid by 2030. The goal is to achieve 80% of electricity generation from renewable sources.
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Kevin Lynch, CEO of Source Galileo, emphasizes the transformative impact of Ingka Group’s investment, especially as the UK has committed to deploying 50GW of offshore wind by 2030, a substantial increase from the current 14GW. Ireland is also expected to contribute with at least 20GW of offshore wind by 2040 as part of Europe’s climate goals.
In the long term, the Irish Government is targeting an impressive 37GW of electricity generation from offshore wind by 2050. Wind Energy Ireland reports that during September, wind power accounted for 32% of the country’s electricity needs, compared to 25% the previous year.
Source Galileo has already announced plans for five offshore wind farm projects in Ireland, with expected completion dates between 2030 and 2031. Two of these will be located in the Celtic Sea, one off the coast of Cork, one off the coasts of Wicklow and Wexford, and the final one near Malin Head in Donegal.
Ingka Group, based in the Netherlands, is most recognized for operating IKEA stores across 31 different markets. Although IKEA and Ingka were founded by the same individual, Ingvar Kamprad, Ingka operates as a franchise and does not own the IKEA brand. All IKEA franchisees pay a 3% franchise fee to the parent company, with Ingka generating 90% of IKEA’s sales.
Ingka Investments, the investment arm of the world’s largest IKEA franchisee, has confirmed its investment in a portfolio of large-scale offshore wind farm development projects around Ireland and the UK controlled by Source Galileo. Despite significant challenges in developing offshore wind energy potential in Ireland due to planning delays and other issues, this investment signals a commitment to clean energy.
Source Galileo is a joint venture between Source Energie and Galileo Green Energy, backed by Australia’s HRL Morrison, an alternative asset manager with over $18 billion in assets. The wind energy projects are expected to bring economic benefits to local communities and expedite national policies and supply chains to maximize the industry’s potential.
Ingka Investments’ involvement in this project is part of a larger initiative to support 100% renewable energy consumption across the IKEA value chain and beyond, with more than €4 billion already committed to renewable energy projects. Ingka Investments is also collaborating with Source Galileo on an offshore floating wind project in Norway as part of the UtsiraVIND Consortium.
This investment is seen as a significant step towards achieving ambitious offshore wind energy targets in both the UK and Ireland and addressing climate change on a larger scale.
