Octopus Energy Group enters partnership with Tokyo Gas

Octopus Energy Group has agreed a major strategic partnership with Tokyo Gas in a deal that values the UK entech in excess of $2bn.

The agreement sees Octopus Energy and Tokyo Gas launch the Octopus Energy brand in Japan, operated by TG Octopus Energy, a 30/70 joint venture backed by working capital and growth funding provided by Tokyo Gas. Tokyo will now function as a launchpad for Octopus's future expansion into the Asian market.

Octopus Energy in Japan will provide 100 per cent renewable electricity amongst other services, helping to drive green energy in the world’s biggest competitive energy market. Japanese renewables currently lag the UK by 50 per cent (renewables in Japan in 2019 accounted for 18.9 per cent of electricity against 37.9 per cent in the UK) but Prime Minister Yoshihide Suga has set a target of reaching net-zero by 2050.

The deal also sees Tokyo Gas take a 9.7 per cent equity stake for consideration of $200m, alongside an approximate further $50m equity investment from Origin Energy, to continue its global expansion and technology development. This will see Octopus enhancing its smart grid capability and commitment to driving the green energy revolution around the world.

In November 2020, Octopus Energy was named “Technology Company of The Year” at the National Technology Awards.

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