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CPP Investments bats for net-zero world with $300M in Al Gore’s Octopus Energy

As energy becomes the new gold and investors make a beeline to invest in the sector, its been a great ride for the UK green energy tech startup Octopus Energy Group. After Al Gore put $600m into the entech startup, the company has bagged another major deal. The five-year-old global energy tech company which now supplies to 3.1m customers across the UK has announced a long-term partnership with Canada Pension Plan Investments (CPPI), one of the largest pension funds in the world.

As a part of this deal, CPP Investments will invest an initial $300 million into Octopus Energy as it looks to grow the level of committed capital over time to support Octopus in their mission to drive the global green energy revolution. The investment increases Octopus Energy’s valuation to approximately $5 billion.

In September 2021, Octopus Energy Group was valued at $4.6 billion after taking $600 million investment from Generation Investment Management, a firm co-founded and chaired by Al Gore to drive business that focus on sustainability and fight against climate change. This was the company’s third major investment round since launching to the market.

Bringing affordable green energy to UK and beyond

The global energy tech pioneer, Octopus Energy Group was launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. The entech is delivering customer-focused and affordable green energy services to over 3 million customers in the UK. Spreading its wings beyond the UK, Octopus Energy is now available in Germany, US, Spain, Italy, New Zealand and Japan as well. One of the UK’s leading electricity generators, it is creating enough green energy to power about 2 million homes.

Boost Octopus’s smart grid capabilities

Accelerating the transition of energy assets globally, the initial commitment from CPP and the broader partnership will help grow Octopus’s tech platform Kraken. It will also boost Octopus’s smart grid capabilities and help expand the company’s green energy generation, including but not limited to the Fan Club – the UK’s first renewable energy tariff that gives communities close to specific wind turbines cheaper power when the blades are spinning significantly (80% of the time).

Towards a net-zero world

Through the establishment of the Sustainable Energies Group (SEG), CPP Investments is building on existing strengths in renewables, conventional energy and innovation.

According to Deborah Orida, Chief Sustainability Officer and Senior Managing Director, Global Head of Real Assets, CPP Investments, this investment is a perfect example of how investors can work with tech-enabled energy companies to support the evolution to a low carbon world.

She said: “Some of the most fulfilling long-term investment opportunities are the ones that will enable and innovate along the path to a net-zero world. As a large, long-term investor, we are well-positioned to continue our leadership in investing in the whole economy evolution required by climate change. This investment and partnership with Octopus Energy, made through our Sustainable Energies Group, is a perfect example of how investors can work with leading tech-enabled energy companies to digitally disrupt the global energy system and support the evolution to a low carbon world.” 

Digitally disrupting global energy system

As the world transitions to a decentralised, decarbonised energy system, the company’s tech arm, Kraken Technologies offers a proprietary, in-house platform based on advanced data and machine learning capabilities to automate much of the energy supply chain.

Greg Jackson, CEO and founder of Octopus Energy Group, said:“We have pioneered the technology that allows citizens to benefit from cheaper energy as it gets greener. CPP is a global force in energy investing, and their investment will help us to build this innovative approach. This partnership is huge as it paves the way to billions of dollars of investment in the UK and globally.”

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