Existing investors are backing privately-held Octopus Energy Group by injecting a massive $550 million of new funds. Expansions both territorial – deeper into continental Europe – and sectoral – building on its recent buy of a heat pump manufacturer in Northern Ireland – are on the cards.
In less than a year, Greg Jackson’s enterprise has welcomed big stakes from showcased angels such as former US vice president Al Gore’s Generation Fund and CPP, Canada’s biggest pension fund. With September’s £483 million buy, the ex-US veep’s fund purchased 13% of the British group.
The latest announcement deepens those partners’ participation. Delivering on a funding round from begun by existing investors in December, two new commitments have specific business goals.
CPP Investments, also known as Canada Pension Plan Investment Board, has committed an additional US $225m to Octopus’ efforts to accelerate the integration of renewables in the UK power system including by leveraging Octopus’ Kraken Flex platform.
For its own customers, as well as through licencing to suppliers such as E-On, EDF and M&S Energy, the group claims Kraken Flex hosts a total of 25 million accounts worldwide for fulfilment and billing.
Other investors are pledging US $ 325 million to support Octopus’ U.K. tech and global businesses.
In May Jackson confirmed Octopus are joining Essex-based startup Xlinks in raising the little matter of £16 billion, intended to fund new wind and solar generation in southern Morocco and pump it home to Devon via 3,800 kilometres of subsea cable.
Jackson, Octopus Energy Group’s CEO and founder, pictured, said of the latest fund-raise; “Octopus will continue to do all we can to help customers through the energy crisis, whilst investing in better solutions to make sure it never happens again.
“We are in grasping distance of a clean, cheap, secure energy system – but it needs continued boldness from innovators like Octopus, and the backing of visionary investors like CPP Investments, Generation, Origin and Tokyo Gas.”
CPP Investments’ head of sustainable energies Bruce Hogg opined: “Furthering our partnership with Octopus is an important milestone as we continue to support the long-term transition to lower-carbon energy solutions.
“Octopus is a significant innovator in the energy sector, and within the U.K. market it is continuing to provide renewable and clean energy to a growing customer base.
“As global investors, we seek to work with leading tech-enabled energy companies and in the evolution to a low carbon world. Investing in the energy transition is important to access untapped potential, and provide opportunities for delivering attractive long-term, risk-adjusted returns and to CPP contributors and beneficiaries.”