Tuesday, March 5, 2024
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Octopus Energy secures $800m investment to accelerate global clean tech push

Octopus Energy is set to further accelerate its global expansion plans, after today announcing it has secured £800m in additional investment from existing shareholders.

The deal values the eight-year-old company at $7.8bn, which represents a 60 per cent increase on its previous investment round in December 2021 following its rapid expansion into a host of new markets.

The company said the latest funding round would help it create 3,000 new green jobs in the UK next year, while also enabling the rollout of heat pumps and renewables in a number of international markets.

Existing investors Origin Energy, Tokyo Gas, Canada Pension Plan Investment Board, and Generation Investment Management all participated in the funding round.

Greg Jackson, founder of Octopus Energy Group, said the investment would allow the company to build on the momentum that had seen it establish “market leadership in UK power”.

“We’ve built the UK’s leading specialist electric vehicle leasing business, in just two years we’ve almost doubled our renewable generation portfolio to $7.6bn, and tripled the contracted accounts on our technology platform Kraken from 17 million to 52 million,” he said. “2023 saw us launch into heat pump installation and manufacture our own models – we now need to drive real scale. This year, our non-UK business has more than doubled with Trustpilot scores of 4.8/5 in almost every country.”

He added that the company’s expansion plans had received a further boost from the UAE Consensus delivered at last week’s COP28 Climate Summit, which called on governments to transition away from fossil fuels, treble renewables capacity, and double the rate of energy efficiency improvements.

“With the renewed commitment seen at COP and our model proven, we will invest to accelerate our growth and create a truly global clean energy giant,” he said.

Frank Calabria, CEO at Origin Energy CEO, said: “The success of Octopus since our initial investment in May 2020 has exceeded all expectations and cemented our belief in its unique capabilities and strong platform for future growth.”

Nobuhiro Sugesawa, chief digital officer at Tokyo Gas, said the latest deal would build on the existing partnership between the two companies.

“Tokyo Gas has been advancing the retail electricity business in Japan through our joint venture, TG Octopus Energy, with Octopus Energy and most recently, we have started cooperating in renewable energy investments in Europe,” he said. “Tokyo Gas believes that technology innovation is essential for future corporate growth. Through our partnership with Octopus Energy, we aim to provide our customers with services using the latest technology and clean energy. We look forward to growing with Octopus Energy.”

The funding round is the latest in a string of recent announcements from Octopus Energy, including the finalisation of its acquisition of Shell’s Energy and Broadband business in the UK and Germany, its new £550m funding facility from Lloyds Bank in support of its electric vehicle business, and the confirmation of its inaugural project in Africa through a new wind and solar farm in Sierra Leone, which marks the fifth continent and 18th operating country for the group.