PERTH (miningweekly.com) – Energy producer Origin Energy will invest an additional £94-million in UK technology and energy company Octopus Energy Group to maintain its 20% equity interest.

Since Origin’s last investment in September 2021, Octopus has made significant progress across its retail, renewable energy, and technology businesses, and has grown to become the UK’s fifth largest energy retailer, increasing its customer base by 25% to 3.1-million customers.

The company recently entered the French market through the acquisition of Plum Energie, adding 90 000 customers and the Kraken segment is profitable and has doubled its revenue forecast for the next three years, to more than £500-million. In addition, renewable energy assets under management have increased by £600-million, to £4-billion.

“We are very impressed with the way Octopus has navigated an incredibly challenging period for the UK energy market, with the company emerging much bigger and as the UK’s fifth largest retailer, better placed to deliver on its vision and growth strategy,” Origin CEO Frank Calabria said.

“Recent events have clearly underscored the significant advantage Octopus’ low-cost operating model and market-leading technology platform, Kraken, provides in a rapidly changing energy landscape, with Octopus able to grow and thrive while other companies failed to survive amid the consolidation of UK retailers.

“Octopus has already grown materially in value since Origin’s initial investment in 2020, and we believe our incremental investment provides a return well above our internal hurdle and is strategically aligned with our ambition to lead the energy transition to net zero. We believe Octopus provides an important avenue for future growth,” Calabria said.

The price of Origin’s investment is the same as the last investment in September 2021.