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Octopus Energy’s generation arm has launched its first ever offshore wind fund worth £3 billion which it plans to invest globally by 2030.
The company said that the fund will specifically focus on European projects and will look at both traditional offshore wind and floating offshore wind turbines.
It has been set up with an initial £190 million investment from Tokyo Gas, with Octopus now seeking additional investors.
Zoisa North-Bond, chief executive 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.”
This deal builds on Octopus Energy Group’s and Tokyo Gas’s strategic partnership after they joined forces in 2020 to set up the energy supplier Octopus Energy in Japan. Last month, Tokyo Gas also licensed Octopus’ tech platform Kraken.
Julia Longbottom, British Ambassador to Japan, said: “The UK is a world leader in offshore wind, and we are committed to growing this sector even further. I am particularly pleased that this investment is coming from Tokyo Gas, a leading Japanese energy company.
“Japanese companies are recognising the UK’s potential as a global hub for offshore wind, forming strategic alliances with leading and innovative UK partners like Octopus. They also increasingly recognise the UK’s credentials as an international financial centre and global hub for asset and investment management.”
Octopus first invested in offshore wind farms last year with its stakes in Hornsea One and Lincs in the UK.
It has also invested in developers of new offshore wind farms with projects in countries including South Korea, Norway, Sweden, Ireland and Spain.
The fund has been announced a day after offshore wind developers were boosted by the UK government’s decision to significantly increase the strike price cap for the next Contracts for Difference (CfD) auction.
The administrative strike price – the maximum amount generators will be paid per megawatt hour (MWh) – has increased from £44 to £73 (2012 prices). It follows a disappointing auction round this year, which attracted no bids from offshore wind developers.
Energy analysts stressed that this is just the first piece of the puzzle with the budget allocation – due to be set next year – the next important factor.
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