Octopus Energy Group continues to snap up major investment in further growing its business, building up its clean technology platform and expanding support for renewables worldwide, today announcing it has secured a total of $550m backing in its recent funding round.
The UK-headquartered energy giant said it had secured $325m from its existing shareholders to support its global expansion and renewables strategy, with all of them meeting or exceeding terms agreed during its fundraising round in December last year.
That comes in addition to a further $225m injection from the Canada Pension Plan Investment Board, also known as CPP Investments, thereby deepening the two companies’ relationship which had already seen the latter agree a $330m investment in Octopus late last year.
Octopus said the further $225m backing from CPP Investments would be used to help accelerate and enhance the integration of renewables in the power system, including through leveraging the energy firm’s leading KrakenFlex technology platform.
“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,” said Greg Jackson, CEO and founder of Octopus Energy Group. “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.”
Octopus Energy Group has rapidly grown in recent years to become one of the UK’s leading energy suppliers, as well as one of the largest renewables investors in Europe, managing 3GW of wind, solar and other green energy projects.
The pioneering Kraken platform has also proved highly successful in securing business for the firm, by supporting its own retail, generation and flexibility efforts as well as being licensed to other major energy players worldwide including E.ON and EDF in the UK.
In total, Kraken is now licensed to support 25 million energy supply accounts worldwide, according to Octopus, which has set a target to expand its reach to 100 million accounts by 2027.
Last year’s $330m injection from CPP Investments, which holds around $19.5bn in assets across the energy sector, helped drive up Octopus Energy Group’s valuation to over $5bn.
Bruce Hogg, managing director and head of sustainable energies at CPP Investments, said that furthering its partnership with Octopus marked “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 UK market it is continuing to provide renewable and clean energy to a growing customer base,” he said. “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.”