Britain’s largest household energy supplier is making a half-billion-dollar bet on a California carbon removal startup — its second major investment in a U.S. company that’s seeking to pull carbon dioxide from the sky.
Octopus Energy on Thursday announced that it is providing $500 million of project financing for Living Carbon, which removes CO2 and sells carbon credits by expanding existing forests or planting trees on degraded landscapes. Octopus also purchased a $13 million stake in the startup.
“This is a landmark deal for us in the US and a huge step in our mission to invest in solutions that drive the planet toward a cleaner future,” said Zoisa North-Bond, the head of Octopus’s business and generation units, in a press release. “Nature itself is a remarkable force for capturing carbon — by restoring these ecosystems, we can make a real difference for both rural communities and the climate.”
The deal comes at an uncertain time for the carbon removal industry. Tech giant Microsoft, the sector’s largest customer, indicated in April that it plans to scale back its support for new projects.
