Octopus Energy Generation, a European investor in renewable energy, is investing nearly $1 billion in California’s “next-gen” tech scene – deepening its foothold in one of the world’s more advanced clean energy markets.

Through its funds, Octopus will back two Californian carbon removal companies pioneering grassland restoration and reforestation to transform degraded land into CO2-absorbing assets – with several big tech companies already lined up as carbon credit offtakers, the company reports.

The funding will also invest in heat batteries to help speed up the decarbonization of hard-to-electrify industries. Developed in the Bay Area, the tech allows swapping polluting fossil-fuel boilers with systems powered by renewable energy.

Additionally, Octopus will acquire a solar and battery project in California, which is expected to become fully operational by July 2026. This builds on Octopus’s previous investments in state-side clean tech infrastructure, with the company aiming to deploy a total $2 billion in the U.S. energy transition by 2030.

California is also already generating more than two-thirds of its electricity from clean sources. It’s the world’s largest economy to reach this milestone with plans to achieve 100% by 2045. With over half a million people already employed in the green sector, the state is creating four times as many clean energy jobs as in all other areas of its booming economy.

“Octopus and California are both leading the way in clean energy innovation,” said Zoisa North-Bond, CEO at Octopus Energy Generation. “With supportive policy and world-class entrepreneurship in and around Silicon Valley, it’s an ideal place to back long-term investment partnerships that will benefit the UK economy. We’re excited to expand Octopus internationally, backing the booming U.S. clean tech sector while bringing innovation, growth and returns to the UK.”

This investment follows a string of deals across North America, including investments in floating offshore wind company Ocergy and solar farms in Ohio and Pennsylvania. The announcement was made during Governor of California Gavin Newsom’s visit to the Octopus Headquarters in London.