Octopus Energy’s generation arm has set up a £3bn (€3.4bn) European offshore wind investment fund with a £190m cornerstone investment from Japanese energy giant Tokyo Gas.
The Octopus Energy Offshore Wind fund will target projects that will focus on reducing Europe’s fossil fuel reliance to boost energy security by investing in the development, construction and operational offshore wind farms, as well as companies creating new offshore wind.
The partnership follows an energy-supplier agreement set up between Octopus Energy and Tokyo Gas in 2020.
While the fund represents Octopus Energy’s first dedicated offshore wind fund, the investor first invested in offshore wind farms last year with its stakes in Hornsea One and Lincs in the UK. Octopus Energy has invested in the Borssele III & IV in the Netherlands and has also invested in developers of new offshore wind farms with projects in countries including South Korea, Norway, Sweden, Ireland and Spain.
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.
“This latest partnership further deepens Octopus Energy’s relationship with Tokyo Gas, and we look forward to welcoming on board more investors so together we can tap into this huge offshore wind opportunity worldwide.”
Kentaro Kimoto, representative corporate executive officer and VP of Tokyo Gas, said: “Tokyo Gas and Octopus Energy have been providing more customers nationwide in Japan with clean electricity derived from renewable energy sources through TG Octopus Energy. It is our pleasure that our commitment to the fund is developing and reinforcing the strategic partnership with Octopus Energy for investments in the offshore wind space.
“Tokyo Gas has set a target to acquire and trade 6GW renewable power sources by 2030. To accomplish this goal, we have proactively taken multifaceted approaches for offshore wind projects, and will accelerate developments of offshore wind, including floating offshore wind.”
Julia Longbottom, British ambassador to Japan, said: “I am delighted to welcome this significant cornerstone investment from Tokyo Gas into the Octopus Energy Offshore Wind Fund, which will boost offshore wind development in the UK and globally. This is a clear sign of the growing partnership between the UK and Japan on offshore wind, which was further strengthened by the Hiroshima Accord.”
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