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Swedish meatballs to clean energy

4C Offshore | Chloe Emanuel
By: Chloe Emanuel 29/11/2023 OX2

OX2 has agreed with Ingka Investments, the investment arm of Ingka Group – the biggest IKEA retailer – to sell a 49 percent stake in next generation Swedish offshore wind projects. The transaction is expected to impact OX2’s operating income positively with approximately 200 MSEK* in 2023. Following the transaction OX2 expects operating income for the full year 2023 to be approximately 1,000 MSEK.

The transaction includes the offshore projects Pleione located east of Gotland and Neptunus located southeast of Blekinge which amounted to 2.4 GW in OX2’s development portfolio in Q3 2023.
 
According to the agreement, OX2 will receive an initial payment of around 230 MSEK*. Following successful permitting OX2 will in addition receive a pre-agreed deferred consideration of approximately 0.7 MSEK* per MW for 49 percent of the planned capacity. OX2 and Ingka Investments are currently exploring future opportunities in the Swedish market including the project Ran located near Pleione. Following the completion of the transaction, the development costs for the projects will be shared according to respective party’s ownership.
 
The parties will in addition to offshore wind investigate establishment of offshore hydrogen production facilities and how this can enable artificial oxygenation of the Baltic Sea and thereby aim to bring back marine life to parts of the Baltic Sea which suffers from anoxic conditions.
 
This is OX2’s third offshore transaction with Ingka Investments. The previous agreements include Ingka Investments’ acquisitions of a 49 percent stake in three offshore projects in Finland in June 2023 and in three offshore projects in Sweden in 2022. These transactions are in line with OX2’s strategy to diversify risk and capitalize on the value creation in offshore wind throughout the development phases.
 
 “Sweden has excellent conditions for renewable energy, especially offshore wind. We look forward to further strengthening our partnership with Ingka Investments. Our next generation project pipeline, where we can combine offshore wind with hydrogen and e-fuel production, will meet the growing demand for renewable energy and enable business opportunities”, says Paul Stormoen, CEO of OX2.
 
“The future of energy is renewable. Our continued partnership with OX2 reaffirms our commitment to address climate footprint reduction well beyond our own consumption and into our value chain. So far Ingka Investments has invested and committed EUR 4 billion into renewable energy projects in wind and solar power”, says Peter van der Poel, Managing Director of Ingka Investments.
 
*Exchange rate EUR/SEK 11.40



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