UK and Japan create $3.7-bln renewables fund

Octopus Energy has teamed up with Tokyo Gas to create a USD 3.7-billion fund to develop offshore wind assets, the UK renewable energy group announced on Friday.

The fund has been set up with a cornerstone investment of USD 273 million from Tokyo Gas, with plans to ramp up investments to USD 3.7 billion by 2030.

The fund is expected to fuel offshore wind projects and companies in Europe and around the world.

The move is part of Octopus Energy’s plans to unlock USD 21.1 billion worth of investments into the green energy sector by 2030.

Octopus Energy’s power generation arm currently manages green energy projects worth around USD 8.69 billion.

The UK company began working in the offshore wind segment in 2022 with stakes in HornSea One and Lincs projects in the UK and is now involved in major projects across the world including the Borssele III & IV in the Netherlands and other projects in South Korea, Norway, Sweden, Ireland and Spain.

According to the company, offshore wind assets currently produce 64 GW of power around the world, with estimates expecting this to grow to 447 GW in the next decade.

“Tokyo Gas has set a target to acquire and trade 6 GW of renewable power sources by 2030,” said Kentaro Kimoto, representative CEO and vice-president of Tokyo Gas.

“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.”

In 2020, Octopus Energy and Tokyo Gas set up an energy supply arm in Japan.