UK independent green energy supplier Octopus Energy heads across the pond with acquisition of the Silicon Valley-based startup Evolve Energy.
Octopus Energy is committing $100 million to its US expansion, which starts in Texas under the name Octopus Energy US. The target is 25 million US energy accounts on its technology platform by 2027 to comprise a quarter of the company’s global target of 100 million energy accounts at the same time.
Evolve Energy was launched in 2018 as an alternative to the legacy suppliers drawing on artificial intelligence and machine learning to optimise energy usage and provide customers with the best energy prices for renewable power. The deal has a value of $5 million and is pivotal to Octopus’s ambition in the US, according to a statement.
“We knew that Evolve was a leading innovative energy firm that was doing great things with real time energy, connected home devices, and renewables,” says Octopus Energy CEO Greg Jackson. “We’re excited to be working with Michael [Lee] and the Evolve team to bring futuristic technology, green energy and excellent customer service to Texas.”
Octopus’s USP is its proprietary cloud-based energy technology platform Kraken, which interfaces with customers and gives them access to cheaper electricity when renewable energy is abundant. The new partnership with Evolve Energy will enable the company to bring the platform to the US market.
The move into the US follows earlier expansions last year into Germany and Australia, the latter with an almost $400 million, 20% share acquisition by Origin Energy.
Octopus is considered to be the fastest growing private energy supplier in the UK, with 1.7 million customers to date.
Kraken is licensed as a software-as-a-service to other energy companies. Across all its operations and licenses, Kraken now serves 17 million energy accounts worldwide, including customers of E.ON UK, Origin Energy in Australia and now Evolve Energy in the US.