Ingka Investments, the investment division of Ingka Group, the largest IKEA retailer, has announced a minority investment in Vanguard Renewables, a company within BlackRock’s portfolio. This strategic partnership aims to convert food waste from IKEA stores into renewable fuel.
Renewable natural gas (RNG), or biomethane, is derived from organic waste, including agricultural, industrial, and household sources. It is chemically identical to fossil-based natural gas, allowing it to decarbonise sectors such as road transport and heavy industry without the need for new infrastructure.
Founded in 2014 and based in Massachusetts, Vanguard Renewables specialises in developing and operating anaerobic digesters to convert organic waste into RNG, thereby reducing dependency on fossil fuels. BlackRock’s Diversified Infrastructure business acquired Vanguard Renewables in 2022, valuing the company at $700 million, with plans to invest an additional $1 billion to support its expansion.
Currently, IKEA U.S. is piloting Vanguard Renewables’ food waste diversion service in five retail locations across Wisconsin, Connecticut, Massachusetts, and Illinois. Food waste, including leftovers from customer meals and unsellable packaged goods, is collected and processed into RNG and low-carbon fertiliser for local agriculture. IKEA intends to extend this programme to more stores nationwide following the pilot phase.
Javier Quinones, CEO and Chief Sustainability Officer of IKEA U.S., stated: “At IKEA, we see waste as a resource. With Vanguard Renewables, we’re turning our restaurant and Swedish Food Market’s food waste into renewable energy and fertiliser. After reducing our pre-consumer waste by close to 50% over the last seven years, the equivalent of saving 83,000 meals, we are excited about the next step. This partnership will make every plate count while improving our operational efficiency.”
Vanguard Renewables will join Ingka Group’s Circular Investments portfolio, initiated in 2017 to support IKEA’s circularity strategies. This involves investing in companies that develop technology or expand capacity to prevent waste or supply recycled materials, focusing on areas such as mattresses, plastics, textiles, wood, and food.
This new investment follows Ingka’s earlier announcement of plans to invest €1 billion in companies that enhance recycling infrastructure, aiming to increase the availability of recycled materials and reduce CO2 emissions.
Peter van den Poel, Managing Director of Ingka Investments, commented: “Addressing our food waste challenge is not just good business, it’s essential for a livable future. This investment in Vanguard Renewables aligns with Ingka Group’s broader ambition to invest EUR 1 billion in scalable circular solutions across the value chain that address global challenges and build a sustainable infrastructure.”
Michael O’Laughlin, CEO of Vanguard Renewables, added: “Vanguard Renewables is on a mission to divert unavoidable food waste from landfills and give it a second life as renewable energy. We’re proud to partner with Ingka to scale innovative food waste recycling solutions for retail supply partners like IKEA and deliver measurable progress toward a more sustainable future.”
