Octopus Energy Group has announced a long-term strategic partnership with Canada Pension Plan Investment Board that will see the latter make an initial $300m (€266m) equity investment in the former.
The companies said that there is an aspiration to grow the level of committed capital over time to support Octopus in its mission to drive the global green energy revolution.
The deal follows a recent investment round with Generation Investment Management and increases Octopus Energy Group’s valuation to approximately $5bn.
The initial commitment from CPP Investments and the broader partnership will help grow Octopus’s Kraken platform.
It will also boost Octopus’s smart grid capabilities and help expand the company’s green energy generation.
CPP Investments chief sustainability officer Deborah Orida said: “In the decades to come, some of the most rewarding long-term investment opportunities in the global economy rest among those businesses that will enable, evolve and innovate along the path to a net-zero world.
“As a large, long-term investor, we are well-positioned to continue our leadership in investing in the whole economy evolution required by climate change.
“This investment and partnership with Octopus Energy, made through our Sustainable Energies Group, is a perfect example of how investors can work with leading tech-enabled energy companies to digitally disrupt the global energy system and support the evolution to a low carbon world.”
Octopus Energy Group chief executive and founder Greg Jackson said: “Octopus has pioneered the technology that allows citizens to benefit from cheaper energy as it gets greener.
“CPP Investments is a global force in energy investing, and their investment and partnership will enable us to build this truly innovative approach along the entire energy value chain.
“Innovating new ways to accelerate investment into the renewable energy revolution is vital to delivering governments’ net zero goals and the CPP Investments-Octopus partnership is globally significant, paving the way to billions of dollars of investment in the UK and globally. Make no mistake – this partnership is huge.”