Clean energy investor Octopus Energy Group announced today it has raised a total of $550 million to support its global expansion and renewables strategy.
The financing includes $325 million from existing shareholders to support Octopus’ U.K. tech and global businesses, as well as an additional $225 million from Canada Pension Plan Investment Board (CPP Investments) to back the company’s efforts to accelerate and enhance the integration of renewables in the power system. Proceeds will also be used to further improve the company’s energy technology platform, Kraken.
Bruce Hogg, Managing Director and Head of Sustainable Energies at CPP Investments, said:
“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.”
Launched in 2016, Octopus Energy Group manages 3 GW of energy projects. Its Kraken platform is based on advanced data and machine learning capabilities and automates much of the energy supply chain to enable efficiency, as the world moves to a decentralized and decarbonized energy system. The Kraken platform supports its own retail, generation, and flexibility businesses and is licensed to other energy players.
The latest financing follows a recent funding round in December 2021, in which Octopus raised $600 million from Generation Investment Management, a sustainability-focused investment firm chaired by former U.S. Vice President Al Gore, and $300 million from CPP Investments. The December financing valued the company at approximately $5 billion.
Greg Jackson, CEO, and founder of Octopus Energy Group, said:
“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.”