The investment vehicle founded by former US Vice President Al Gore has bought a 13% stake in UK based Octopus Energy.
Generation Investment Management said it will inject 600 million dollars (£437 million) into Octopus to help accelerate its global green energy strategy.
The deal will involve an immediate 300 million dollar (£218.8 million) investment, with another 300 million dollar package due in June 2022.
The move, which comes amid turmoil in the UK energy sector as firms tackle soaring gas prices, increased Octopus’ valuation to around 4.6 billion dollars (£3.3 billion).
Octopus Energy founder and chief executive officer Greg Jackson said: “Whilst the UK energy market is currently in a tough state, it’s highlighted the need for investment in renewables and technologies to end our reliance on fossil fuels.
“So we are delighted to announce our agreement with Generation Investment Management, created to back sustainable companies changing the world for the better.
“Three years ago, the management team of Octopus Energy met to discuss growth plans for our fledgling company.
“We watched An Inconvenient Sequel and were inspired to accelerate and expand our mission to make energy greener faster, cheaper, across the globe. Being backed by Generation, co-founded and chaired by Al Gore, enables us to make that dream come true.”
Octopus manages over £3 billion of renewable generation contracts, creating enough green energy to power about 1.5 million homes.
Tom Hodges, partner in the long-term equity strategy at Generation Investment Management, said: “Octopus Energy has an extraordinarily good fit with Generation’s mission of investing over the long term to support system and climate-positive companies.
“The world is at the early stages of an unprecedented energy transition which is essential to reach the goals of the Paris Agreement.
“This can be done in a way that is better for the environment and consumers.
“Octopus and its software platform Kraken are at the forefront of innovation and helping to create the dynamic and flexible renewable energy system needed.”
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