Octopus Energy launches landmark £3bn offshore wind fund with Tokyo Gas
- Octopus’ first dedicated offshore wind fund aimed at boosting energy security and reducing global reliance on dirty fossil fuels
- Launched with major cornerstone investment from Tokyo Gas
- Next step in Octopus’ plans to unleash billions in offshore wind globally
London/Tokyo, 17th November 2023 – Octopus Energy’s generation arm - which manages £6 billion (€7 billion) of green energy projects - launches its first ever offshore wind fund.
The fund, set up with a £190 million (€220 million) cornerstone investment from Japanese energy giant Tokyo Gas, plans to invest £3 billion (€3.5 billion) in offshore wind globally by 2030. Projects will focus on Europe to reduce fossil fuels reliance and boost energy security.
The Octopus Energy Offshore Wind fund will invest in development, construction, and operational stage offshore wind farms, as well as companies creating new offshore wind.
It will look at both traditional offshore wind turbines which are fixed to the seabed and floating offshore wind turbines which harness strong winds deeper at sea.
This is the next step in Octopus’ plans to unleash £15 billion (€17 billion) into this sector and unlock this green energy for millions of homes globally by 2030.
Octopus first invested in offshore wind farms last year with its stakes in Hornsea One and Lincs in the UK. Since then it has rapidly scaled its activity, backing one of Europe’s largest farms, Borssele III & IV in the Netherlands.
It has also invested in developers of new offshore wind farms with projects in countries including South Korea, Norway, Sweden, Ireland, Spain, and more.
With 64 GW of installed capacity globally, offshore wind is already one of the most important renewable sources. It will play a key role in the future energy system, with forecasts expecting it to increase to 447 GW over the next ten years. It comes as offshore wind is set to be a trillion dollar industry by the end of the decade.*
Zoisa North-Bond, CEO of Octopus Energy Generation said: “It’s absolutely brilliant to launch our first ever fund dedicated solely to offshore wind investment together with such a visionary partner Tokyo Gas. The potential to make a positive impact, boost energy security and reduce fossil fuels dependence is massive with offshore wind.
“This latest partnership further deepens Octopus Energy’s relationship with Tokyo Gas - and we look forward to welcoming on board more investors so together we can tap into this huge offshore wind opportunity worldwide.”
Kentaro Kimoto, Representative Corporate Executive Officer, Vice President of Tokyo Gas, said: “Tokyo Gas and Octopus Energy have been providing more customers nationwide in Japan with clean electricity derived from renewable energy sources through TG Octopus Energy. It is our pleasure that our commitment to the Fund is developing and reinforcing the strategic partnership with Octopus Energy for investments in the offshore wind space.
“Tokyo Gas has set a target to acquire and trade 6 GW renewable power sources by 2030. To accomplish this goal, we have proactively taken multifaceted approaches for offshore wind projects, and will accelerate developments of offshore wind, including floating offshore wind.”
Julia Longbottom CMG, British Ambassador to Japan, said: “I am delighted to welcome this significant cornerstone investment from Tokyo Gas into the Octopus Energy Offshore Wind Fund, which will boost offshore wind development in the UK and globally. This is a clear sign of the growing partnership between the UK and Japan on offshore wind, which was further strengthened by the Hiroshima Accord.
“The UK is a world leader in offshore wind, and we are committed to growing this sector even further. I am particularly pleased that this investment is coming from Tokyo Gas, a leading Japanese energy company. Japanese companies are recognising the UK's potential as a global hub for offshore wind, forming strategic alliances with leading and innovative UK partners like Octopus. They also increasingly recognise the UK’s credentials as an international financial centre and global hub for asset and investment management.
“The UK-Japan partnership on offshore wind is growing in strength every year, and it is playing a vital role in our global efforts to tackle climate change. I am confident that this investment will help us to achieve our shared goals and build a better future for both of our countries."
This deal further strengthens Octopus Energy Group’s and Tokyo Gas’s strategic partnership who joined forces in 2020 to set up the energy supplier Octopus Energy in Japan.
Earlier this year, Octopus also announced plans to rapidly scale Asia-Pacific renewables investment as well as expanding its Tokyo tech innovation and energy retail hub.
And last month, Tokyo Gas licensed Octopus’ tech platform Kraken to enhance its service and speed up the drive to a greener system for its millions of energy customers.
Notes to editors:
** Wood Mackenzie, May 2022
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About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda and building green power for the future. This means reshaping the market by leading the transition to a cleaner, greener future through renewable projects connected more deeply to customers and businesses.
As one of Europe’s largest investors in renewable energy, its fund management specialist team launched in 2010 with a mission to accelerate the transition to a future powered by renewable energy. This team manages 3.2 GW of renewable energy projects like wind and solar farms across over 15 countries, worth £6bn. These projects generate enough green energy to power 2 million homes every year, and is the equivalent of taking over 1 million petrol cars off the road. The business also launched the Fan Club, the world's first local energy tariff that provides cheaper, greener energy to customers living near local turbines when it’s windy, with a discount of up to 50%. For more information, check out our website.
About Octopus Energy Group
Octopus Energy is a global energy and technology group, driving the affordable, green energy system of the future. Its operations span 17 countries and the entire energy value chain. The group invests in, builds and flexibly manages renewable energy, operating a £6 billion portfolio of projects – one of Europe’s largest.
Octopus serves 5.8 million customers globally through its retail arm, and has licensed its advanced data and machine learning platform, Kraken, to support 40 million customer accounts worldwide through licensing deals with companies such as EDF, E.ON and Origin Energy, with the potential for further 10 million to follow soon.
Kraken enables Octopus to drive the electrification of heat and transport through smart tariffs and innovative cleantech. Backed by pension funds, investors and energy giants, Octopus Energy Group businesses deliver cheaper, greener energy and cutting-edge tech to countries and customers worldwide. For more information, check out our website.
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