Zoisa North-Bond meets the PM at a Japan-UK business reception | Credit: Octopus Energy
Energy giant claims business in Japan is growing 'at an incredible speed'
As G7 leaders prepare to meet this weekend in Hiroshima, Octopus Energy has announced plans to invest £1.5bn in renewables projects in the Asia-Pacific region by 2027, with more than half the funds earmarked for Japan.
This morning, the energy company said the lion's share of the investment - around £1.2bn - is allocated for solar and wind generation projects, of which half will be spent in Japan, its second largest market .
A further £300m will be spent on the firm's "innovation and energy retail hub" in Tokyo, where much of the functionality for its energy management platform Kraken was developed.
Octopus Energy said the investment would enable it to increase its headcount in the Asia-Pacific region 10-fold by 2027 and create roughly 1,000 new jobs in the UK and abroad.
It said its business in Japan, where it operates a joint venture with Tokyo Gas, was "growing at an incredible speed", noting that it was "adding thousands of domestic customers each week".
The firm said it plans to raise £400m from Asia-Pacific investors as part of its strategic partnership with the Japanese energy giant, which it said it would be used to build more UK wind and solar farms.
Greg Jackson, founder of Octopus Energy Group, said international cooperation was "key" to creating an energy transition which benefits consumers and economies as well as the climate.
"Our partnership with Tokyo Gas has grown ever stronger and I'm delighted to be bringing even more investment to Japan and into the UK," he said. "Linking our businesses in Australia, New Zealand and Singapore to the UK and Europe, our operations in Japan have helped create a unique global technology ecosystem benefiting everyone."
Octopus' investment is one of a string of deals announced this morning at a Japan-UK business reception hosted in Tokyo by Prime Minister Rishi Sunak, who is visiting the city ahead of his participation in this weekend's G7 Leaders Summit.
Other green deals announced today include a commitment from trading house Marubeni to sign a memorandum of understanding (MoU) to invest £10bn with its partners in UK offshore wind, low carbon hydrogen, and other clean energy projects over the next 10 years. Sumitomo Corporation, meanwhile, announced its intention to invest £4bn in projects off the coast of Suffolk and Norfolk with its partners, and Sumitomo Electric Industries announced its decision to build a cable manufacturing plant in the Scottish Highlands.
UK consultancy Mott MacDonald similarly announced it had won a contract to help develop a major offshore wind project in western Japan.
Sunak said the investments were a "massive vote of confidence" in the UK's "dynamic" economy. "Working with the government and British industry they will create the kind of high-quality, reliable jobs and transformative local investment we are delivering around the country," he said.
The Prime Minister also applauded the UK firms investing in Japan. "It's great to also see leading UK businesses seizing the huge opportunities for growth and collaboration in Japan," he said.
Japan has emerged as a leader in solar energy generation and hydrogen and battery technologies in recent years, but it continues to depend on coal for roughly a third of its electricity and has been criticised by environmental groups for failing to do more to boost financing for clean energy and climate resilience projects in developing economies.
A recent report from the Ember think tank noted that Japan stands out as the only nation in the G20 that has not reduced its share of coal power since the Paris Agreement was signed.
Keep up to date with all the latest green business news by signing up to the free Daily and Weekly BusinessGreen Newsletters.
