Ingka Group, the principal owner of IKEA stores globally, is exploring its first renewable energy investment opportunities in South Korea and Japan.

The company’s investment arm, Ingka Investments, has identified offshore wind as a particularly promising option for these markets.

Peter van der Poel, Managing Director of Ingka Investments, shared with Reuters that while the company continues to actively seek investments in Europe, its focus also includes South Korea and Japan, where IKEA has a significant presence.

Despite not currently owning wind or solar assets in these Asian countries, Ingka is considering offshore ventures as a strategic entry point, given the high land costs in the region.

Japan has set ambitious goals for offshore wind power, aiming for 10 gigawatts (GW) by 2030 and up to 45 GW by 2040. The government recently expanded potential turbine installation areas to include exclusive economic zones (EEZ), signaling a commitment to renewable energy growth.

Ingka Investments has committed a substantial 7.5 billion euros to renewable energy investments by 2030, with 4 billion euros already allocated. The company boasts a current capacity of 2.5 GW from its existing assets.

Despite acknowledging the challenges posed by higher costs, inflation, and supply chain issues in the offshore wind sector, van der Poel emphasizes Ingka’s long-term commitment to decarbonization, not just for the company but also as a contribution to Europe’s green transition.

The group’s recent involvement in Norway’s first commercial offshore wind farm auction, alongside Japanese-backed partner Parkwind, underscores this commitment.

The consortium plans to install 90 wind turbines, each with a capacity of 17 megawatts (MW), aiming for operational status by 2030. Van der Poel expressed confidence in the viability of the Norwegian project, despite the current economic climate.

Ingka’s strategic moves in renewable energy investments highlight the company’s dedication to sustainability and its proactive approach to addressing the global climate crisis.