British electricity and gas supplier, Octopus Energy Group has announced a major strategic partnership with Tokyo Gas, one of Japan’s leading utilities to launch the Octopus Energy brand in Japan. It will be operated by TG Octopus Energy, a 30:70 joint venture backed by working capital and growth funding provided by Tokyo Gas. Through this deal, that values the UK company in excess of $2 billion, Octopus Energy will enter the Asian market with Tokyo as its launchpad.
Octopus Energy in Japan will provide 100 per cent renewable electricity amongst other services, helping to drive green energy uptake in the country. The potential for renewable energy development is huge in Japan where energy generation from renewables lags that of UK by 50 per cent.
Octopus’s technology platform ‘Kraken’ will be licensed by the joint venture for improved customer experience and cleaner and smarter energy solutions for residents in Japan. As part of this deal, Tokyo Gas will take a 9.7 per cent equity stake worth $200 million. Moreover, Origin Energy will also invest $50 million as equity, to continue its global expansion and technology development. This transaction has been approved by the boards of Octopus Energy Group, Tokyo Gas and Origin Energy Ltd. and is subject only to formalities and regulatory approval.
“We are delighted to announce our agreement with Tokyo Gas, one of the most respected and successful Japanese utilities, to launch ‘Octopus Energy’ in Japan. 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 revolutionize energy globally,” said Greg Jackson, Founder and CEO, Octopus Energy.
“I believe Octopus Energy, which is delivering diversified tariffs and services using digital technology through low costs in the UK and overseas, is the most appropriate partner for Tokyo Gas. Through this partnership, we will contribute to the achievement of a better lifestyle for customers by realizing value creation and delivery tailored to every one of them,” said Takashi Uchida, President and Representative Director, Tokyo Gas.