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UK’s Octopus Energy is launching a $3.7-billion (£3 billion) offshore wind fund in cooperation with Japan’s Tokyo Gas as part of an ambition to invest in projects in Europe to reduce fossil fuel reliance and boost energy security.
The Octopus Energy Offshore Wind fund will invest in the development, construction, and operational stages of both fixed and floating offshore wind farms, as well as companies creating new offshore wind, the UK company said in a statement on Friday.
The fund was set up with a $236 million (£190 million) cornerstone investment from Japanese energy giant Tokyo Gas.
“This latest partnership further deepens Octopus Energy’s relationship with Tokyo Gas - and we look forward to welcoming on board more investors so together we can tap into this huge offshore wind opportunity worldwide,” said Zoisa North-Bond, CEO of Octopus Energy Generation.
Kentaro Kimoto, Representative Corporate Executive Officer and Vice President of Tokyo Gas commented,
“Tokyo Gas has set a target to acquire and trade 6 GW renewable power sources by 2030. To accomplish this goal, we have proactively taken multifaceted approaches for offshore wind projects, and will accelerate developments of offshore wind, including floating offshore wind.”
Earlier this year, Octopus Energy said it plans to lead investments worth $18.6 billion (£15 billion) into offshore wind power projects globally by 2030. Octopus Energy said its plans “to unleash” the investments into offshore wind would go towards the generation of 12 gigawatts (GW) of renewable electricity a year, enough to power 10 million homes.
The offshore wind industry has seen several major setbacks since the summer—auctions in the U.S. and the UK were a flop and a large UK project was canceled due to surging costs and challenging market conditions pressuring new developments. Meanwhile, developers in the U.S. are seeking looser requirements for tax credits to make projects economically feasible. In addition, Siemens Energy is reviewing the scope of activities at its wind turbine-making unit, Siemens Gamesa, as quality issues, rising costs, and ramp-up challenges in the wind business dragged the company into a net loss of $5 billion for the 2023 fiscal year.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com