IKEA GreenTech, an IKEA Group company, has invested an undisclosed amount into the Dutch-based DyeCoo Textile Systems.
The investment will be used to speed up the development and availability of DyeCoo's waterless dyeing technology for use in dyeing cotton applications. The technology, which uses recycled carbon dioxide (CO2) to avoid the large amount of water and chemical, has also been used in polyester fabric and for dyeing polyester.
IKEA GreenTech managing director Christian Ehrenborg said: "DyeCoo's waterless dyeing technology is a truly innovative system that could bring real environmental and costs benefits for the textile industry by reducing water and chemical use."
The textile industry, which IKEA claims to be the one of the largest consumers of water in Asia, can put pressure on the availability of clean water and contribute to environmental pollution in the discharges from manufacturing processes.
The DyeCoo system can offer benefits to the region by removing the need to use water in the dyeing process and eliminating the risk of effluent discharge.
IKEA Group chief sustainability officer Steve Howard said: "By helping to scale the DyeCoo system for use with larger production volumes, we could help to make a big difference for the environment as well as workers and communities around textile facilities."
NIKE, an American-based apparel and footwear brand company, had also invested in DyeCoo Textile Systems in 2012.
Nike sustainable business and innovation VP Hannah Jones said: "We're delighted IKEA shares a similar objective to accelerate development of more sustainable materials and manufacturing processes."