Octopus Energy Snags $800M to Accelerate Clean Energy Growth

octopus energy offshore wind farm with an octopus boat in the foreground

(Credit: Octopus Energy)

by | Dec 18, 2023

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Octopus Energy, the United Kingdom’s largest power supplier, has received $800 million additional investment from existing shareholders to help it enhance low-carbon technologies and clean energy expansion, boosting the value of the company to $7.8 billion.

Octopus Energy is the owner of the Kraken technology platform, which has more than 52 million accounts. The platform supports E.ON, EDF, and Good Energy in the U.K. as well as clients in Europe, Japan, and Australia. The platform is an integrated utilities system.

The company said the $800 million will go toward international expansion. It will also help Octopus expand low-carbon technologies, especially heat pumps, the company said. Additionally, the company said the investment will help it add 3,000 clean jobs in the U.K. in 2024.

The new valuation is 60% higher than December 2021, when the company had its last funding round. Since then, Octopus has pushed into heat pump installation and manufacturing of their own models, according to Greg Jackson, founder of Octopus Energy Group.

“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.

In addition, the company has announced several other projects recently, including a wind and solar farm in Sierra Leone, and the company’s inaugural project in Africa. Plus, Octopus recently acquired Shell’s Energy and Broadband business in the U.K. and Germany. Its clean transport group also secured a nearly $700 million funding facility from Lloyds Bank for Octopus Electric Vehicles.

The company’s reach in the U.K. enables more than 1 million customers to save money during the energy crisis, returning more than $12 million to customers through Octopus’s Saving Sessions, which helps reduce demand on the energy grid during peak times.

Investors including Australian and Japanese giants Origin Energy and Tokyo Gas, Canada Pension Plan Investment Board (CPP Investments), and Generation Investment Management participated in the latest funding round.

In 2023 Octopus has expanded its reach in clean energy, pledging to invest $20 billion in offshore wind by 2030 while also committing nearly $2 billion in the Asia-Pacific energy market.

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