Octopus Energy Generation is investing almost $1 billion in California clean tech projects, the latest move by the UK‑based renewable investor as it scales up its presence in the US market.
Octopus Energy invests big in California clean tech
The funding will support a mix of technologies, including carbon removal startups, industrial heat battery systems, and a solar + storage project expected to come online by July 2026. The deals are part of Octopus’s broader plan to invest $2 billion in the US energy transition by 2030.
Two of the investments target California companies working on carbon removal through grassland restoration and reforestation. The goal is to turn degraded land into carbon‑absorbing assets, with several Big Tech companies already lined up to buy the resulting carbon credits.
Octopus is also backing heat battery technology developed in the Bay Area. The systems are designed to replace fossil‑fuel boilers in hard-to-electrify industries, using renewable power to generate and store heat.
The company is also acquiring a solar and battery project in California to convert the state’s strong solar resources into electricity. The project is expected to be fully operational by July 2026.
The latest investments add to Octopus’s existing North American portfolio, which includes funding for floating offshore wind developer Ocergy and solar projects in Ohio and Pennsylvania. Through its US retail arm, the company also supplies clean electricity to households in Texas.
Octopus says it sees California as a prime location for clean tech investment thanks to its policy support and concentration of energy startups. The state already generates more than two‑thirds of its electricity from clean sources and aims to reach 100% by 2045.
The UK is also seeing rapid growth in its clean energy sector. In 2024, Britain’s clean energy economy grew three times faster than its overall economy, according to figures cited by Octopus. California’s clean energy workforce has also expanded quickly, with more than half a million people now employed in the sector.
The announcement was made yesterday during California Governor Gavin Newsom’s visit to Octopus headquarters in London (pictured).
Electrek’s Take
Octopus’s latest investment push demonstrates that global capital will increasingly flow into regions with strong clean energy policies. California has long been one of the most predictable markets in the US for renewable developers, which lowers risk for investors compared to states where policy swings can stall projects.
What’s notable here is the spread of technologies. Solar and storage are proven, bankable assets, but carbon removal and industrial heat batteries are still emerging categories. That mix suggests Octopus is balancing safer infrastructure bets with higher‑risk, next‑gen tech plays.
This all comes as UK Energy Secretary Ed Miliband and Newsom signed a clean energy agreement in London aimed at deepening cooperation on tech sharing and mutual investment between California and the UK. The deal is meant to strengthen research links and open up more opportunities for companies on both sides of the Atlantic. This likely gave Octopus greater confidence to ramp up its California commitments.
If the company follows through on its $2 billion US target, it could become a much more visible player in the US clean energy market over the next few years.
Read more: $35B in US EV, clean energy projects vanished in 2025 – here’s what broke
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