Multinational home furnishings retailer IKEA has clinched a deal with TransAlta and Teck Resources to buy a wind farm located near Drumheller, Alberta, Canada, for a price of $119.6 million, according to a January 26 report by local broadcaster CBC News-Calgary.
Located about 80 miles from Calgary, Wintering Hills Wind Power Facility is an 88- MW farm, comprising 55 General Electric 1.6-MW turbines that deliver power to the electrical grid. Wintering Hills began operating in November 2011, according to CBC News.
TransAlta told the local news outlet on January 26 that it would receive about $61 million for its 51 per cent interest in the wind farm; Teck said that it would receive $58.6 million for its 49 per cent stake.
“We are committed to having a positive impact on people and the planet,” said Brendan Seale, Sustainability manager, IKEA Canada. “This investment in renewable energy supports our business and moves us closer to our global ambition to produce more renewable energy than we consume by 2020.”
This is IKEA Canada’s second such investment in renewable energy in Alberta following the purchase of a 46-MW wind farm in Pincher Creek in 2013. Together, these two wind farms will produce the equivalent of more than four times the energy that IKEA Group operations currently consume in Canada.
This wind farm investment is part of a broader investment approach to support core business and strategic objectives. The completion of the transaction is expected in two to three weeks pending customary closing conditions.
The home furnishings giant already has allocated over $3.2 billion to become resource and energy independent. Since 2009, the IKEA Group has invested $1.6 billion in renewable energy; and has committed an additional $641 million for investments in wind and solar.
The company recently announced a financial frame of $1.06 billion to secure a long-term supply of sustainable materials by investing in forestry as well as companies active in recycling, renewable energy development and biomaterial developments. IKEA already owns forests in Eastern Europe and is looking at expanding its forestry portfolio to North America.