UK-based energy tech company Octopus Energy attained unicorn status this year. Following this, the company announced that it has agreed a major strategic partnership with Tokyo Gas, one of the leading utilities in Japan. The deal takes the UK company’s valuation to over $2B with $250M additional investment.
Notably, Tokyo Gas gets a 9.7% equity stake of $200M and an additional $50M equity investment from Origin Energy. This will be used for its global expansion and technology development. This will see Octopus enhancing its smart grid capability and to drive the green energy revolution around the world.
Forays into Japan in 2021
As a result of the strategic partnership, Octopus Energy brand will be launched in Japan. It will be operated by TG Octopus Energy, which is a 30:70 joint venture backed by growth funding and working capital from Tokyo Gas. With this, Octopus Energy enters into the Asian market.
In Japan, the UK-based energy tech company will provide 100% renewable electricity among other services. It will help drive the use of green energy in Japan, which is the biggest competitive energy market in the world. As per the company, Japanese renewables lag behind that of the UK by almost 50% but there seems to be a huge potential. Octopus Energy is at the forefront of driving the same and making use of this potential. Also, it supports the Prime Minister Yoshihide Suga’s target of reaching net zero by 2050.
Octopus Energy, Founder and CEO, Greg Jackson, said: “We are delighted to announce our agreement with Tokyo Gas, one of the most respected and successful Japanese utilities, to launch “Octopus Energy” in Japan. Tokyo Gas’s investment into Octopus Energy Group, and the additional investment from Origin, will enable our outstanding team to drive even faster at the forefront of the global energy revolution.
Tokyo Gas, President and Representative Director, Takashi Uchida, said: “I believe Octopus Energy, which is delivering diversified tariffs and services using digital technology through low costs in the UK and overseas, is the most appropriate partner for Tokyo Gas. Through this partnership, we will contribute to the achievement of a better lifestyle for customers by realizing value creation and delivery tailored to every one of them.”
Octopus Energy’s Kraken platform
Octopus Energy’s technology platform ‘Kraken’ will be licensed by the joint venture to deliver an improved customer experience and cleaner and smarter energy solutions to Japanese households. Kraken is contracted to serve 17 million energy accounts all over the world via Octopus’s own retail businesses and agreements with Good Energy, Hanwha Corporation, Origin Energy, nPower and E.ON.
It is now a fast-growth disruptor and has launched in the USA and Germany. In the UK, it has launched Electric Juice, the country’s first electric vehicle roaming network. Also, it partnered with Tesla to launch Tesla Power. In November 2020, Octopus Energy was named “Technology Company Of The Year” at the National Technology Awards.