Octopus Energy Generation is injecting nearly $1 billion in California CleanTech – a move which it says will boost growth back here in the UK.
One of Europe’s leading investors in renewable energy, Octopus will back two Californian carbon removal companies pioneering grassland restoration and reforestation to transform degraded land into high-quality CO2-absorbing assets.
It says several Big Tech companies have already been lined up as carbon credit offtakers.
The newly unlocked funding will also invest in heat batteries to fast-track the decarbonisation of hard-to-electrify industries. The tech allows swapping polluting fossil-fuel boilers with systems powered by renewable energy.
Additionally, Octopus will acquire a solar and battery project in California, aiming to help turn the state’s abundant sunshine into clean, cheap power. The project is expected to become fully operational by July 2026.
This builds on Octopus’s previous investments in Stateside CleanTech infrastructure, with the company aiming to deploy a total $2bn in the US energy transition by 2030.
California is already generating more than two-thirds of its electricity from clean sources. It’s the world’s largest economy to reach this milestone with plans to achieve 100% by 2045.
Zoisa North-Bond, CEO at Octopus Energy Generation, said: “Octopus and California are both leading the way in clean energy innovation. With supportive policy and world-class entrepreneurship in and around Silicon Valley, it’s an ideal place to back long-term investment partnerships that will benefit the UK economy.
“We’re excited to expand Octopus internationally, backing the booming U.S. clean tech sector while bringing innovation, growth and returns to the UK.”
This marks the latest step in Octopus’s mission to accelerate the global energy transition and help enable a fully zero-carbon future. It follows a string of deals across North America, including investments in floating offshore wind company Ocergy and solar farms in Ohio and Pennsylvania.
Through its US business, Octopus already powers thousands of homes in Texas with green electrons, bringing clean energy and smart, money-saving tariffs to people across the region.
The announcement was made during a visit by the Governor of California to Octopus’s headquarters in London.