Ingka Group, furniture retailer Ikea’s owner, has purchased a 15 per cent stake in TagEnergy’s $2 billion Golden Plains Wind Farm near Geelong, Victoria.

Ingka Investment – the group’s investment arm – says this is the first major renewable energy investment made by the company in Australia.

The project consists of two stages: a 756MW stage one featuring 122 turbines and a 500MW stage two featuring 93 turbines along with a 300MW battery storage facility at Golden Plains.

Peter van der Poel, MD of Ingka Investments, said sustainability investments are a “growth sector” and a core strategic priority for the company.

“It is about making the necessary investments to meet sustainability goals and support the Ikea transition to become climate positive and transition to a circular business model.”

Mirja Viinanen, CEO and CSO of Ikea Australia, said the company is increasing its efforts to invest in renewable energy production in countries where the output can be used to help reduce the footprint of the group.

“Understandably Australia has been identified as a location with rich potential for renewable investments and this agreement is the first for Ingka Investments in this country.”

According to Ikea, once complete, the wind farm can deliver a total of 1.3 GW of sustainable energy to more than 750,000 homes.

Moreover, Ingka Investments can also claim up to 15 per cent of the output and link it to the local Ingka Climate Footprint.

Andrew Riggs, TagEnergy’s managing partner in Australia, said the company is proud to have joined forces with a global company that shares a mutual belief in making sustainable investments with a purpose.

The facility is expected to be fully operational by the end of 2025.