Octopus Energy invests up to £35m in battery startup Exagen

Octopus Exagen

The first investment from Octopus Energy’s new Development Partnership (OEDP) fund has gone to battery developer and solar power company Exagen.

Octopus Energy Group has bought a 24% in the sustainable energy company, valued at up to £35m, according to Exagen’s website.

Exagen said it will use the cash injection to accelerate the development of its clean energy tech projects. This includes the construction of three solar and battery storage facilities across the Midlands and Northeast. A 1GWh standalone mega-battery in the Midlands is expected to be operational in 2027.

The investment from Octopus serves as both a cash injection and a project acquisition, with Octopus partnering with Exagen for the upcoming solar and battery storage projects.

Exagen aims to produce over 500MW of generation and energy storage projects annually to further the goal of decarbonisation.

“All of us at Exagen are thrilled by this ground-breaking deal with Octopus, which will support us in our mission to build smarter, flexible renewable generation projects across the grid, said Exagen founder and CEO, Jeremy Littman.

“I believe our commitment to our staff, our technology-focused approach to operations, and above all our passion for local communities and the environment has aligned us with the Octopus team.”

The £185m OEDP fund was launched by Octopus Energy Group to invest in early-stage renewable energy firms. The fund is managed by Octopus Energy Generation, a green tech investment company formed as part of a deal with Generation Investment Management in September 2021.

“Making the first investment from this new renewable development fund is a major milestone for us and we’ve got some more coming up,” said Alex Brierley, the co-head of Octopus Energy Generation’s fund management team.

“Working with Exagen, there’s a massive opportunity to scale solar and battery storage projects – and these will play an absolutely integral role in the flexible renewable energy system of the future.”

Last month Octopus Energy Group raised $550m (£455.3m) in the firm’s latest funding round to improve its energy tech solutions and expand its renewables offering.