Origin infuses $114M investment in Octopus Energy’s U.K. expansion

By Vinisha Joshi  | Date: 2022-07-27

Origin infuses $114M investment in Octopus Energy’s U.K. expansion

Australian natural gas and electricity retailer, Origin Energy has reportedly invested an additional $114 million in British renewable energy group, Octopus Energy to maintain its 20% equity share in the company.

Following Origin’s last investment in Octopus in September 2021, the Australian company has noted exponential growth as the latter emerged as U.K.’s fifth largest energy retailer with a 25% rise in its customer base, reaching 3.1 million.

Origin is also betting on Octopus’s technology platform, Kraken, considering its successful trajectory and potential to surpass $602 million in revenue over the next three years. Meanwhile, the platform’s renewable energy assets have already surged by $723 million to $4.8 billion.

Apparently, Origin’s latest investment comes after notable international investments in Octopus by the Generation Investment Management & Tokyo Gas and Canada Pension Plan Investment Board, which contributed to a total of $211 million in the latest funding round.  

With the recent capital influx, Octopus’s valuation has multiplied by four times since the initial investment of Origin in May 2020, placing Octopus at $4.2 million.

Speaking on the investment, Frank Calabria, CEO of Origin emphasized Octopus’s endeavour to efficiently navigate through the volatile U.K. energy market, as it well positioned to deliver on its growth and strategy after emerging as the fifth largest retailer in the country.

According to Calabria, Octopus has already grown in terms of value since its first infusion into the platform in 2020.

Sources also reveal that with the additional investment, which is in line with Origin’s energy transition ambitions to achieve net zero targets, the platform will further deliver an important opportunity for future growth.

For the record, Origin is progressing well with the dynamic migration of all electricity and gas customers to Kraken, which is expected to be completed by the end of this year. Currently, Kraken has more than 2.3 million customer accounts, representing more than half of Origin’s customer base.

Source Credit: https://www.naturalgasworld.com/origin-invests-another-94mn-in-uks-octopus-energy-99840

About Author

Vinisha Joshi     thisisourtownrichmond.co.uk

Vinisha Joshi

As a qualified Engineering graduate, Vinisha Joshi takes pride in playing with words. Presently, she pens down insightful articles on business, core industry, technology, and the like for Thisisourtownrichmond in addition to other platforms. Creativity comes naturally...

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