98 MW Hoopeston Wind Project Is the Largest Single IKEA Renewable Energy Investment Globally to Date
“The US has amazing wind and sun resources that will never run out. We are delighted to make this investment – it is great for jobs, great for energy security, and great for our business. Importantly, it’s great for the future of our climate,” says Steve Howard, Chief Sustainability Officer, IKEA Group.
The announcement was made by Rob Olson, Chief Financial Officer of IKEA US, at a business executive briefing by Climate Declaration signatories for members of the Bi-Cameral Task Force on Climate Change focusing on climate-related business impacts, strategies companies are using to lower their carbon footprints, and the policies needed to mitigate climate change and boost clean energy sources.
“We are committed to renewable energy and to running our business in a way that minimizes our carbon emissions, not only because of the environmental impact, but also because it makes good financial sense,” said Olson. “We invest in our own renewable energy sources so that we can control our exposure to fluctuating electricity costs and continue providing great value to our customers.”
The wind farm purchase is also indicative of the IKEA commitment to growth in the United States. IKEA will open three new stores in 2014 and 2015, and last month announced plans to expand its manufacturing partnership with a key US supplier.
Hoopeston Wind is expected to generate up to 380 GWh of renewable energy each year, which is equivalent to any of the following, calculated annually:
- The electricity needs of 34,000 average American households1
- A reduction in CO2 emissions equal to taking 55,000 cars off the road2
- 165% of the electricity consumed by IKEA US (38 stores, five distribution centers, two
- service centers and one factory)
- 130% of the total energy (electricity + heat) consumed by IKEA US
- 18% of the electricity used by IKEA Group worldwide
- 10% of the total energy used by IKEA Group worldwide
- The energy consumed by 70 IKEA stores
The Hoopeston Wind project will install 49 Vestas V100-2.0 MW wind turbines near Hoopeston in Vermilion County, Illinois, approximately 110 miles south of Chicago.
Hoopeston Wind will be fully owned by the IKEA Group and managed by US-based wind and solar developer Apex Clean Energy. Apex President Mark Goodwin said, “Wind energy has been the fastest growing source of new energy generation in the US, and the potential is only beginning to be tapped. This project with IKEA US is an opportunity for Apex to work with a new type of investor and partner to expand wind energy development in this country.”
Hoopeston Wind is the most recent in a series of renewable energy investments by the IKEA Group, which has now committed to own 206 wind turbines worldwide. This includes investments in wind farms in eight other countries to date: Canada, where it is now the largest retail wind energy investor; Denmark; France; Germany; Ireland; Poland; Sweden; and the United Kingdom.
IKEA Group has also installed 550,000 solar panels on IKEA buildings in nine countries. In the US, these investments include solar installations completed on 90% of IKEA locations across 20 states, with a total of 165,000 solar panels providing 38 MW installed capacity. In addition, IKEA integrated a geothermal component into the heating and cooling system of the IKEA store in Centennial, CO, with another geothermal project underway as part of a new Kansas City-area store slated to open in Fall 2014.
In 2013, the IKEA Group produced 1,425 GWh of energy from renewable sources, including wind and solar, equivalent to 37% of the company’s total energy needs. As part of its People & Planet Positive sustainability strategy, the company has allocated $2 billion to invest in wind and solar until 2015 to get closer to its goal of producing 100% as much renewable energy as the total energy it consumes by 2020. The IKEA Group is also leading in making its operations more energy efficient, and since 2010 has saved nearly $55 million3 through energy efficiency efforts in IKEA stores and warehouses.
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 305 IKEA Group stores in 26 countries. There are 38 IKEA stores in the US. In FY 13, the IKEA Group had 135,000 co-workers, 684 million visitors to the stores and 1.3 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment.
For more information, visit facebook.com/IKEAUSA, @IKEAUSANews, @DesignByIKEA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com, www.theshare-space.com/en/Blog
About Apex Clean Energy
Apex Clean Energy is an independent renewable energy company based in Charlottesville, VA. Since its founding in 2009, Apex has become one of the fastest-growing companies in the industry. In December 2012, Apex completed the development and construction of the 300 MW Canadian Hills Wind project outside Oklahoma City. The company has a diversified portfolio of wind energy facilities in development around the country and owns several operating solar PV assets. The company’s management team comprises experts from throughout the industry whose collective prior experience includes the development, financing, construction and operation of over $10 billion in wind and solar energy facilities now operating in the United States.
Contact: Mona Astra Liss ~ IKEA US Corporate PR Director
Mona.Liss@IKEA.com ~ 610.834.0180, ext. 5852
3 Euro to dollar conversion based on exchange rate 4/7/14