Octopus Energy Generation is investing nearly $1bn in Californian clean technology projects, deepening its exposure to the US energy transition and accelerating plans to deploy $2bn across the country by 2030.
The funding, channelled through Octopus-managed funds, spans carbon removal, heat battery technology and solar-plus-storage infrastructure, reinforcing the company’s strategy of backing next-generation decarbonisation assets in advanced markets.
Octopus will support two California-based carbon removal companies focused on grassland restoration and reforestation, converting degraded land into high-quality carbon-absorbing assets. Several large technology firms have already agreed to purchase carbon credits from the projects, providing long-term revenue visibility.
The investor will also back heat battery technology developed in the Bay Area, aimed at decarbonising hard-to-electrify industrial processes. The systems are designed to replace fossil-fuel boilers with renewable-powered thermal storage, cutting emissions in sectors that have proven difficult to transition.
As part of the investment drive, Octopus is acquiring a solar and battery storage project in California. The site is expected to be fully operational by July 2026, helping convert the state’s abundant solar resource into dispatchable, low-cost electricity.
The announcement builds on earlier North American investments, including backing floating 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 grew three times faster than the wider economy in 2024, according to CBI data, and Octopus said overseas investments would ultimately support UK returns and expertise.
Zoisa North-Bond, chief executive of Octopus Energy Generation, said California’s policy environment and technology ecosystem made it an attractive long-term partner.
“Octopus and California are both leading the way in clean energy innovation,” she said. “With supportive policy and world-class entrepreneurship in and around Silicon Valley, it’s an ideal place to back investments that will benefit the UK economy.”
California currently generates more than two-thirds of its electricity from clean sources and aims to reach 100 per cent by 2045, positioning it as one of the world’s most ambitious energy transition markets.
The announcement was made during a visit by the Governor of California to Octopus’s London headquarters, underscoring the growing transatlantic collaboration in clean technology and infrastructure investment.
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Octopus Energy Generation to invest $1bn in California clean tech