Octopus Energy Generation to invest $1bn in California clean tech

Octopus Energy Generation is investing nearly $1bn in California clean-tech projects, deepening its exposure to the US energy transition and accelerating plans to deploy $2bn nationwide by 2030.

The funding, driven by funds managed by Octopus, covers carbon emissions, thermal battery technology and solar-plus-storage infrastructure, reinforcing the company’s strategy to fund next-generation decarbonisation assets in developed markets.

Octopus will support two California-based carbon sequestration companies that specialize in reforestation and reforestation, turning degraded land into high-quality carbon-absorbing assets. Several large technology firms have agreed to buy carbon credits from the projects, providing long-term revenue visibility.

The investor will also support the technology of thermal batteries developed in the Bay area, which aims to eliminate industrial processes that are difficult to electrify. The systems are designed to replace fossil fuel boilers with thermal storage with renewable energy, cutting carbon emissions in sectors that have proven difficult to replace.

As part of the investment campaign, Octopus is acquiring a solar and battery storage project in California. The site is expected to be fully operational by July 2026, helping to convert the country’s abundant solar energy into low-cost, dispatchable electricity.

The announcement builds on previous North American investments, including funding for offshore wind developer Ocergy and solar projects in Ohio and Pennsylvania.

The move comes as Octopus expands its international footprint while maintaining close ties to the UK market. Britain’s clean energy economy is set to grow three times faster than the wider economy by 2024, according to CBI data, and Octopus said overseas investment would ultimately support the UK’s recovery and professionalism.

Zoisa North-Bond, CEO of Octopus Energy Generation, said California’s local policy and technology ecosystem made it an attractive long-term partner.

“Octopus and California are both leaders in clean energy innovation,” he said. “With a supportive policy and world-class entrepreneurs in and around Silicon Valley, it is the perfect place to return investment that will benefit the UK economy.”

California currently generates more than two-thirds of its electricity from clean sources and aims to reach 100 percent by 2045, positioning it as one of the world’s most ambitious energy transition markets.

This announcement was made during the visit of the Governor of California to the headquarters of Octopus in London, emphasizing the growing transatlantic cooperation in clean technology and infrastructure investment.