Ikea, the Swedish furniture giant, announced plans yesterday to make major investments into cleantech start-ups with the goal of carrying products like solar panels in their store. Ikea's GreenTech division will invest 50 million euros (approximately $77.3 million) into five categories of companies: solar panels, alternative light sources, product materials, energy efficiency and water saving and purification.

These investments will be limited to companies that have commercial prospects within the next five years — Ikea wants to make sure that these products will be available for sale in the near future. John Stenebo, the managing director of the GreenTech division, said that Ikea is hoping to make its first investments this year. Over the next two years, the company plans to invest in up to six companies. In total, Ikea will eventually invest in up to ten companies — a relatively small portfolio — because the company wants to offer developmental aid to startups. In addition to Ikea's financial help, the company wants to help startups reduce overall prices and create better products.

Stenebo said that Ikea wants to offer cleantech products that are in line with the company's other products. "Really low prices, and they should be of very good quality. That's the only thing we look at, we would never look at anything else, we would discard anything else that doesn't fall into those boundaries," he said. "Whether it's home furnishings or it's greentech products."

Photo — ktpupp