Renewables investor backs carbon removal, heat batteries and solar-plus-storage as part of $2bn US expansion plan
London, 16 February 2026 – The British renewables investor Octopus Energy Generation is to invest almost $1bn in clean technology projects in California, deepening its presence in the United States and betting on innovations it says will drive returns and growth back to the UK.
The investment will span carbon removal, industrial heat batteries and a large-scale solar and storage project, in what the company described as a significant expansion into one of the world’s most advanced clean energy markets.
The move forms part of a broader plan to deploy $2bn in the US energy transition by 2030.
Carbon removal and land restoration
Through its funds, Octopus Energy will back two California-based carbon removal companies focused on grassland restoration and reforestation. The projects aim to rehabilitate degraded land and convert it into high-quality carbon sinks capable of generating verified carbon credits.
Several large technology companies are already lined up as long-term buyers of the credits, reflecting growing corporate demand for nature-based offsets as businesses seek to meet climate targets.
Tackling industrial emissions
The company is also investing in heat battery technology developed in and around Silicon Valley. The systems store renewable electricity as heat, enabling factories and heavy industry to replace fossil-fuel boilers with low-carbon alternatives.
Industrial heat remains one of the most difficult sectors to decarbonise, particularly where electrification is costly or impractical. Supporters of heat batteries argue they offer a route to cutting emissions without extensive infrastructure overhaul.
Solar and storage
In addition, Octopus will acquire a solar and battery project in California, designed to convert the state’s abundant sunshine into clean power. The project is expected to become fully operational by July 2026.
California already generates more than two-thirds of its electricity from clean sources and has set a target to reach 100% by 2045, making it one of the most ambitious large economies in the energy transition.
Transatlantic clean energy ties
The UK and California have emerged as two of the fastest-growing clean energy markets. Britain’s low-carbon and renewable energy sector expanded at roughly three times the rate of the wider economy in 2024, while California employs more than half a million people in green industries.
Zoisa North-Bond, chief executive of Octopus Energy Generation, said the company saw strong alignment between the two markets.
“Octopus and California are both leading the way in clean energy innovation,” she said. “With supportive policy and world-class entrepreneurship, it’s an ideal place to build long-term investment partnerships that also benefit the UK economy.
“We’re expanding our international footprint by backing the US clean tech sector while bringing innovation, growth and returns to British investors.”
The announcement was made during a visit by the governor of California to Octopus’s London headquarters.
The latest deals follow a series of North American investments by the group, including backing the floating offshore wind company Ocergy and solar projects in Ohio and Pennsylvania.
Through its US retail arm, the company also supplies renewable electricity to households in Texas, part of its strategy to build a transatlantic clean energy platform as governments seek to accelerate the shift away from fossil fuels.
