Octopus Energy launches £3bn offshore wind fund with Tokyo Gas

OCTOPUS ENERGY has launched its first dedicated offshore wind fund aimed at boosting energy security in Europe and reducing global reliance on fossil fuels. 

The UK energy firm said it plans to invest £3bn (US$3.8bn) by 2030 in the development, construction, and operational stage of offshore wind farms, as well as in companies creating new offshore wind. 

Both traditional offshore wind turbines, which are fixed to the seabed, and floating offshore wind turbines, which can be installed in deeper sea waters, will be considered, the firm said. 

Tokyo Gas, the Japanese utility that owns almost 10% of Octopus, is backing the fund with a £190m cornerstone investment, while Octopus is in the process of raising the rest from outside investors, the Financial Times reports. 

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.” 

The funding is Octopus’ latest effort to expand business in the renewables market. The firm has earmarked a total of £15bn to grow its share in wind farms, and has already acquired stakes in two wind farms in the UK; Hornsea 1, one of the largest offshore wind farms in the world, and Lincs offshore wind farm. It has also invested in Borssele III & IV in the Netherlands, and Butendiek wind farm in Germany.  

Its rapid expansion has also seen Octopus snap up 1.5m former Bulb customers in the UK, as well as take over Shell’s household supply arm this year. The deal, which was completed in early December, means the firm is on course to become the UK’s second-largest household energy supplier, with 6.6m customers. The largest is Centrica-owned British Gas, with around a 20% share of the market.