Canada Pension Plan Investment Board invests further $300m in Octopus energy

The Canada Pension Plan Investment Board (CPP Investments) has committed an additional $300m (C$511m) to the Octopus Energy Group.

CPP Investments, the investment management arm of C$576bn Canada Pension Plan, stated that its latest commitment to Octopus Energy increases its stake in the UK-based energy company from 6 to 11%.

Octopus Energy was founded in 2015 and became the UK’s second-largest household energy supplier after it bought oil and gas supermajor Shell’s UK household supply division this year. In addition, it manages renewable energy projects worth £6bn, including wind and solar farms in 16 countries.

According to CPP Investments, its additional $300m commitment to Octopus will support its technology platform, Kraken, and the furthering of its renewable energy, heat pump and electric vehicle offerings.

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Bill Rogers, CPP Investment’s managing director and global head of sustainable energies, said: “CPP Investments backs leading companies across the energy transition with our flexible capital, global network and deep expertise – this follow-on investment in Octopus is an important example of this, while delivering attractive long-term, risk-adjusted returns to the CPP Fund.”

As of September 2023, CPP Investments had committed C$32bn to the global energy transition through its sustainable energies group.