UK green energy company Octopus has acquired US start-up Evolve Energy as part of a $100m investment in the American market.
Octopus Energy US, based in Texas initially, is targeting 25 million US energy accounts on its technology platform by 2027.
In the US Octopus will deploy its cloud-based energy technology platform, Kraken.
The software tool is designed to give customers access to cheaper electricity when renewable energy is abundant.
Kraken is already licensed as a software and operating model provider to other energy companies, allowing them to offer “greener, cheaper energy” to customers.
Across all its operations and licenses, Kraken is now contracted to serve 17 million energy accounts worldwide, including customers of Eon UK, Origin Energy in Australia and now Evolve Energy in the US.
Evolve Energy is a Houston and Silicon Valley-based energy start-up that uses AI and machine learning to optimise energy usage, providing customers with the best energy prices for renewable power.
The company was launched in 2018 by technology entrepreneur Michael Lee to challenge the country’s legacy suppliers.
It has been backed by Matt Rogers, the cofounder of Nest, through his fund Incite.
Octopus Energy CEO and founder Greg Jackson said: “We knew that Evolve was a leading innovative energy firm that was doing great things with real-time energy, connected home devices, and renewables.
“We’re excited to be working with Michael and the Evolve team to bring futuristic technology, green energy and excellent customer service to Texas.
“In just four years, we have attracted 1.7 million customers to our business with a total of 17 million accounts contracted to our platform between ourselves and our license partners. Our ambitions for the US are high, but we haven’t missed a target yet.”
Lee added: “Octopus Energy is inspirational in growing a customer base of over one million households in just four years.
“It has done so while also achieving customer satisfaction scores similar to Netflix and Amazon. It matches our aspiration for innovation and we’re thrilled to be part of the Octopus family.”