Swedish renewable energy company OX2 has entered into an agreement with Ingka Investments, the owner of IKEA, to sell a 49% stake in its three offshore wind projects in Finland. The three projects, named Halla, Laine and Tyrsky, are located in the Gulf of Bothnia in the Finnish Exclusive Economic Zone and are expected to have a potential total installed capacity of about 6000MW.
The sale of the stake is expected to have a positive impact on OX2's operating income in 2023, with an approximate SEK300m ($35m) gain. However, it will affect OX2's net revenues and operating profit by SEK390m ($45m) and SEK300m ($35m) respectively.
If both parties agree to continue development after the successful permitting process, OX2 will receive a pre-agreed price equivalent to SEK0.8m per MW for the 49% of the planned capacity. The total production could reach up to 29TWh once operational, which corresponds to more than one third of the electricity consumed in Finland in 2022.
Halla and Laine are two of the most advanced offshore wind projects in Finland and have the potential to become operational by the end of the decade. OX2 Chief Executive Paul Stormoen expressed his optimism in a statement, “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.”
Peter van der Poel, Managing Director of Ingka Investments, also expressed his enthusiasm for the partnership, saying, “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 €3.5bn today to €6.5bn before 2030.”
The completion of the transaction is subject to customary competition merger filing requirements and is expected to be finalized within two months. Once completed, the development costs for the projects will be shared according to each party's ownership.
This partnership highlights the increasing trend of large companies investing in renewable energy and taking actions to reduce their carbon footprint. As the world moves towards a more sustainable future, we can expect to see more collaborations like this one, driving the growth of renewable energy globally.
