Energy Procurement, Commercial, Sourcing Renewables, Wind - January 31, 2017
IKEA to buy Canadian wind farm for $120M
IKEA Canada, through two separate purchases, is acquiring a Canadian wind farm for $119.6 million.
According to a statement from diversified resource company Teck Resources Ltd., The Swedish home furnishing will pay C$58.6 million for Teck's 49% stake in the Wintering Hills wind power facility. The joint owner, TransAlta Corp. subsidiary TA Wintering Hills LP, separately announced plans to sell its 51% stake in the facility to IKEA for about $61 million.
Wintering Hills is an 88 MW wind power facility located near Drumheller, Alberta, and was commissioned in 2011, according to Teck's Jan. 26 statement. The transaction is expected to close in February 2017, subject to the satisfaction of customary closing conditions.
The Canadian Press reported Jan. 26 that the facility will be the second Canadian wind farm owned by IKEA, which has 12 stores in the country. The other is a 46 MW wind farm, also in Alberta, that the company acquired in 2013, according to the Canadian Press.
IKEA has allocated $2.5 billion to invest in renewable energy globally through 2020. Consistent with its goal of being energy independent by 2020, IKEA has installed more than 700,000 solar panels on buildings across the world and owns approximately 300 wind turbines, including 104 in the U.S.