Octopus Energy Generation has announced an investment of nearly $1bn (£736m) in Californian clean technology, focusing on carbon removal and renewable energy projects.
The funding will support two companies in California working to restore grasslands and forests, converting degraded land into areas that absorb carbon dioxide.
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Several large technology companies have already agreed to purchase the resulting carbon credits.
Octopus Energy Generation will also invest in heat battery technology developed in California’s Bay Area, aiming to reduce emissions from industries that are challenging to electrify by replacing fossil-fuel-powered boilers with systems that run on renewable power.
As part of its expansion, the company will buy a solar and battery project in California, expected to be operational by July 2026.
This initiative follows previous investments by the UK company in US clean technology infrastructure, with Octopus targeting a total of $2bn in investment in the US energy sector by 2030.
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By GlobalDataCalifornia produces more than two-thirds of its electricity from renewable sources and plans to reach 100% by 2045.
The UK’s clean energy sector has also grown rapidly, outpacing overall economic growth.
These developments are part of Octopus Energy Generation’s broader efforts to support the transition away from fossil fuels.
The company already supplies renewable electricity to households in Texas and continues to invest in solar and offshore wind projects across the US.
Octopus Energy Generation CEO Zoisa North-Bond said: “Octopus and California are both leading the way in clean energy innovation. With supportive policy and world-class entrepreneurship in and around Silicon Valley, it is an ideal place to back long-term investment partnerships that will benefit the UK economy.
“We are excited to expand Octopus internationally, backing the booming US clean tech sector while bringing innovation, growth and returns to the UK.”
The investment announcement coincided with a visit on Monday by the Governor of California, Gavin Newsom, to Octopus Energy’s headquarters in London.
