UK's Octopus tightens offshore grip with Deep Wind stake

Group adds investment in Norway-based developer to burgeoning interests in sector that's facing big pressures

Knut Vassbotn, CEO of Deep Wind Offshore.
Knut Vassbotn, CEO of Deep Wind Offshore.Foto: Deep Wind Offshore

Octopus Energy has invested in Norway’s Deep Wind Offshore as the UK-based group targets 10GW of offshore wind by 2032, despite soaring costs in the sector sending other developers running from projects.

Octopus Energy’s generation arm announced today (Thursday) its investment in Deep Wind, an international offshore wind developer with a pipeline of projects in Norway, Sweden, and South Korea.

Octopus said its 10GW of planned offshore wind will be enough to power 8.5 million homes.

Neither Octopus nor Deep Wind in its own announcement specified how much the UK company is investing or what equity stake it has taken.

Deep Wind Offshore was founded in Norway in 2021 and is backed by Norwegian shipping and energy companies Knutsen OAS, Haugaland Kraft, and Sunnhordland Kraftlag.

Since launching it has entered joint ventures with companies including EDF Renewables and BP.

The deal follows an announcement by Octopus in July that it will lead a $20bn investment spree to spur 12GW of offshore wind projects around the world by 2030. That push is being helped by the group's own backers – including former US vice-president Al Gore's Generation Investment Management – and partners such as pension funds.

Zoisa North-Bond, CEO of Octopus Energy Generation, said the potential for offshore wind is “absolutely massive and in many ways we’re only at the start of this burgeoning industry.”

“Working with Deep Wind Offshore is hugely exciting, providing access to new offshore wind markets for us where they have deep expertise. Ultimately, the more offshore wind farms built across the globe, the quicker we can drive down bills and create a more secure energy system for everyone.”

Knut Vassbotn, CEO of Deep Wind Offshore, said: "Welcoming Octopus as an investor will enable Deep Wind Offshore to accelerate international growth and strengthen its position in Norway.”

“The support from Octopus combined with our expertise means that we now have the strength to grow significantly, also internationally,” he added.

The investment by Octopus comes amid what has been described as a “perfect storm” of cost increases and supply chain issues for the offshore industry. Further afield, developers in the US have paid to exit projects or sought to renegotiate their contracts.
(Copyright)
Published 7 September 2023, 09:01Updated 7 September 2023, 09:01
United KingdomNorwayEuropeOffshoreOctopus Energy