Tokyo Gas and Octopus Energy will establish the Octopus Energy brand in Japan
New joint venture will be backed by working capital and growth funding provided by Tokyo Gas. (Credit: Michal Jarmoluk from Pixabay)
British retail energy firm Octopus Energy has entered into a strategic partnership with Japanese utility firm Tokyo Gas (TG) to form a joint venture to supply power to Japanese retail customers.
Under the deal, which values the Octopus Energy in excess of $2bn, the partners will establish the Octopus Energy brand in Japan.
The new entity, which will be operated by a 30:70 joint venture TG Octopus Energy, will launch in 2021.
TG Octopus Energy will be backed by working capital and growth funding provided by Tokyo Gas.
Additionally, the deal will also see Tokyo Gas acquire a 9.7% stake in Octopus Energy for $200m, along with approximate further $50m equity investment from Origin Energy to continue its expansion and technology development.
Octopus Energy founder and CEO Greg Jackson said: “This Joint Venture will bring our exciting approach to renewable energy and technology to the world’s largest competitive energy market, and the investment will turbocharge our mission to revolutionise energy globally.”
In May this year, Origin Energy agreed to acquire 20% stake in Octopus Energy for A$507m ($327.61m).
Jackson added: “When Origin invested, we said it was fuel for stage two of our mission. Since then, Octopus Energy has accelerated that mission to make the global green revolution faster and cheaper by launching Octopus Energy Germany and New Zealand, acquiring Octopus Energy USA and acquiring Upside Energy to deepen our smart grid capabilities with their powerful technology.
“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.”