Octopus Energy, one of the leading European investors in renewable power, announced that it is putting nearly $1 billion into carbon dioxide removal (CDR) and clean energy solutions in California, deepening its presence in the United States market.
Made through the company’s Octopus Energy Generation subsidiary, this investment forms part of a broader U.S. expansion strategy under which Octopus Energy has the ambition to allocate $2 billion into the U.S. energy transition by 2030.
This investment builds on the company’s previous support for stateside clean tech infrastructure, and it follows a string of North America deals that include financial contracts with Ohio- and Pennsylvania-based solar farms, as well as a partnership with floating offshore wind company Ocergy.
The newly announced investment will support two California-based carbon removal companies working on projects that tackle atmospheric CO2 emissions via grassland restoration and reforestation. The two selected projects are focused on restoring degraded land into potent CO2-absorbing assets and have already secured offtake partnerships with Big Tech clients.
Octopus Energy also shared that it plans to invest in heat batteries that will support the accelerated decarbonization of hard-to-electrify industries. As highlighted in the announcement, the batteries, developed in the Bay Area, will enable a switch from fossil-fuel-powered boilers to innovative systems driven by renewable energy.
Going forward, Octopus Energy’s ambitious U.S. market advance will also include a purchase of a solar and battery project in California, which will leverage the state’s abundant sunshine to generate clean and affordable power, slated to become fully operational by July 2026.
The news of this latest investment came during California Governor Gavin Newsom’s visit to the Octopus Energy headquarters in London at the beginning of this week.
Relevant: Stanford Study Maps California’s Path To Net Zero By 2045
Commenting on this major update, Octopus Energy Generation CEO Zoisa North-Bond stated, “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.”
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