UK's Octopus Invests $1B in California Clean Energy Tech

Octopus Energy, the UK's largest energy provider, is betting big on California's climate future with close to $1 billion in clean energy investments across the Golden State.

The London-based company is spreading its money across three breakthrough areas: carbon removal projects that restore grasslands and forests, industrial heat batteries that replace fossil fuel boilers, and a massive solar storage facility set to power up next July. Together, these deals mark one of the largest clean energy partnerships between the UK and US to date.

California Governor Gavin Newsom traveled to Octopus headquarters in London last week to celebrate the announcement. The visit highlighted just how serious both sides are about this partnership.

The carbon removal investments target degraded land that can be transformed into natural CO₂ sponges. Major tech companies have already lined up to buy the carbon credits, showing strong corporate demand for credible climate solutions.

The heat battery technology tackles one of the toughest challenges in clean energy: decarbonizing industrial heat. These Bay Area systems run on renewable electricity instead of fossil fuels, offering manufacturers a real alternative to polluting boilers.

The solar-plus-storage project will add significant clean power capacity to California's grid. Battery storage solves the key problem of renewable energy by saving sunshine for when it's actually needed.

The Ripple Effect

This investment is part of Octopus's $2 billion commitment to American clean energy projects by 2030. The company already supplies renewable power to Texas households and has backed offshore wind and solar farms across Ohio and Pennsylvania.

The partnership makes sense when you look at the numbers. California now generates over two-thirds of its electricity from clean sources, making it the largest economy in the world to cross that threshold. The state employs more than half a million people in green jobs, creating positions four times faster than its already booming overall economy.

Meanwhile, the UK's clean energy sector grew three times faster than its total economy in 2024. Both regions are proving that climate action and economic growth go hand in hand.

"California is an ideal place to back long-term investment partnerships that will benefit the UK economy," says Zoisa North-Bond, CEO of Octopus Energy Generation. The goal is bringing innovation and returns back across the Atlantic while accelerating America's energy transition.

California aims to reach 100% clean electricity by 2045. With billion-dollar commitments like this one, that ambitious target is starting to look achievable.