Octopus Energy and Tokyo Gas launch £3bn offshore wind fund

UK-based Octopus Energy’s generation arm and Tokyo Gas have launched a fund to invest in development, construction, and operational stage offshore wind farms, as well as companies creating new offshore wind.

Japanese energy major Tokyo Gas contributed £190 million ($237 million) to the fund, which will invest £3 billion ($3.8 billion) in both fixed bottom and floating offshore wind globally by 2030.

Octopus first invested in offshore wind farms in 2022 with stakes in Hornsea One and Lincs in the UK. Since then, it has also invested in Borssele III & IV in the Netherlands.

This announcement marks the next step in Octopus’ broader strategy to invest £15 billion ($18.7 billion) into the sector.

Zoisa North-Bond, CEO of Octopus Energy Generation commented in a statement: “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 fuel 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 Energy Group and Tokyo Gas began partnering in 2020 to set up Octopus Energy in Japan. Furthermore, Tokyo Gas recently licensed Octopus’ tech platform Kraken to enhance service delivery for its millions of customers.

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Kentaro Kimoto, representative corporate executive officer, vice president 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.”

Offshore wind is expected to be a trillion-dollar industry by the end of the decade, with the Global Wind Energy Council forecasting 680GW of new capacity in the next five years (2023-27).

According to Julia Longbottom CMG, British Ambassador to Japan, the investment from Tokyo Gas into the Octopus Energy Offshore Wind Fund will allow both partners to tap into the opportunities presented by the burgeoning offshore wind sector in the UK and globally. It also signifies the growing partnership between the UK and Japan.

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Said Longbottom, “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.

“The UK-Japan partnership on offshore wind is growing in strength every year, and it is playing a vital role in our global efforts to tackle climate change."

Earlier this year, Octopus announced plans to scale Asia-Pacific renewables investment as well as expand its Tokyo tech innovation and energy retail hub.

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