Aug. 8, 2008 - Swedish furniture giant IKEA is pouring more than $75 million into cleantech startups over the next five years with an eye toward selling solar panels and other home energy-saving devices in its stores, Cleantech Group reports.

The new IKEA GreenTech Fund will work with companies focusing on emerging technologies in five key areas - solar panels, alternative light sources, product materials, energy efficiency, and water saving and purification. The first products to result from these partnership may hit IKEA store shelves as soon as 2011.

"We will be very active on the boards of these companies," according to Johan Stenebo, managing director of IKEA GreenTech. "I think we can contribute somewhat in terms of commercializing the product they are developing, and then, obviously, distributing the product as well."

The fund will initially look at European companies, though there are no geographic restrictions on future investments, according to Stenobo. "IKEA is likely to make its first investments this year," he says. "We're already talking to companies."

IKEA has made significant efforts to meet consumer demand for greener products and practices. It recently launched a green-themed website to collect customers' feedback and communicate its environmental goals. In June, the company announced a 90% reduction in plastic bag use after consumers called for a shift to reusable bags whenever possible.