IKEA Acquires 49 Vestas Turbines in the United States

11 April 2014

The 98 MW wind farm is the largest single investment IKEA group renewable energy investment globally to date and will make significant contribution to the company’s goal to generate as much renewable energy as the total energy it consumes by 2020.

The project is currently being constructed by US-based wind and solar developer Apex Clean energy, and the wind farm will consist of 49 Vestas V100-2.0 MW wind turbines:

“The US has amazing wind and sun resources that will never run out. We are delighted to make this investment – it is great for jobs, great for energy security, and great for our business. Importantly, it’s great for the future of our climate,” says Steve Howard, Chief Sustainability Officer at IKEA Group.

Making good business sense

“We are committed to renewable energy and to running our business in a way that minimizes our carbon emissions, not only because of the environmental impact, but also because it makes good financial sense. We invest in our own renewable energy sources so that we can control our exposure to fluctuating electricity costs and continue providing great value to our customers,” said Rob Olson, Chief Financial Officer of IKEA US.

Hoopeston Wind is expected to generate up to 380 GWh of renewable energy each year, which is equivalent to any of the following, calculated annually:

The electricity needs of 34,000 average American households¹
A reduction in CO2 emissions equal to taking 55,000 cars off the road²
165% of the electricity consumed by IKEA US (38 stores, five distribution centers, two service centers and one factory)
130% of the total energy (electricity + heat) consumed by IKEA US
18% of the electricity used by IKEA Group worldwide
10% of the total energy used by IKEA Group worldwide
The energy consumed by 70 IKEA stores

Solar ambitious

IKEA Group has also installed 550,000 solar panels on IKEA buildings in 9 countries. In the US, these investments include solar installations completed on 90% of IKEA locations across 20 states, with a total of 165,000 solar panels providing 38 MW installed capacity.

Investing USD 2 billion in RE by 2015

In addition, IKEA integrated a geothermal component into the heating and cooling system of the IKEA store in Centennial, CO, with another geothermal project underway in the Kansas City-area.

In 2013, the IKEA Group produced 1,425 GWh of energy from renewable sources, including wind and solar, equivalent in 37% of the company’s total energy needs. The company has allocated USD 2 billion to invest in wind and solar until 2015 to get closer to its goal of producing 100% as much renewable energy as the total energy it consumes by 2020.

The IKEA Group is also making its operations more energy-efficient, and since 2010 has saved nearly USD 55 million³ through energy efficiency efforts in IKEA stores and warehouses.

Source: IKEA Group

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¹ Calculated using estimated project Net Capacity Factor and the U.S. Energy Information Administration’s ‘Average Residential Monthly Bill by Census Division and State’. (http://www.eia.gov/electricity/sales_revenue_price/html/table5_a.html

² http://www.epa.gov/cleanenergy/energy-resources/calculator

³ Euro to dollar conversion based on exchange rate 4/7/14