Octopus Energy launches $4bn offshore wind fund with Tokyo Gas
New fund will invest in projects by 2030 as Japanese giant commits $236m
UK power group Octopus Energy has launched a landmark investment fund with Japan's Tokyo Gas, with plans to invest £3bn ($3.7bn) in developing offshore wind projects through 2030.
Octopus described the new initiative as "a first dedicated offshore wind fund aimed at boosting energy security and reducing global reliance on fossil fuels".
The Octopus Energy Offshore Wind fund is being launched with a £190m ($236m) cornerstone investment from Tokyo Gas.
It will invest in development, construction, and operational stage offshore wind farms, both fixed bottom and floating, as well as companies contributing to growth in the sector. The launch of the fund comes amid a challenging period for the global sector, which has been hit hard by inflation and supply chain issues that have led to the cancellation of several major projects.
The fund will invest globally, although Octopus Energy, which currently manages £6bn in green energy projects, underlined in its statement Europe's need to reduce fossil fuel reliance and boost energy security.
The UK utility said it has wider plans to invest £15bn in the offshore wind sector by 2030.
Octopus kick-started offshore wind investments last year with stakes in the Hornsea One and Lincs wind farms in the UK.
The new fund has acquired a 5% stake in the 731.5MW Borssele III & IV offshore wind farm in the Netherlands, Tokyo Gas stated in its own release.
Octopus, founded by UK entrepreneur Greg Jackson, says it is investing in development initiatives aimed at new offshore wind farms in countries including South Korea, Norway, Sweden, Ireland and Spain.
Zoisa North-Bond, CEO of Octopus Energy Generation said: “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.”
Octopus already partners Tokyo Gas in supplying renewables-sourced energy in Japan though TG Octopus Energy.
Kentaro Kimoto, vice president of Tokyo Gas, said: “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.”
Earlier this year, Octopus also announced plans to scale Asia-Pacific renewables investment as well as expanding its Tokyo tech innovation and energy retail hub.
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