Cornwall Pension Fund commits £40 million to Octopus Energy Transition Fund

Cornwall Pension Fund has made a £40 million commitment to the Octopus Energy Transition Fund (OETF), which is managed by Octopus Energy Generation.

OETF was launched last year to back innovative green projects accelerating the energy transition. The £500 million fund is raising capital from institutional investors for opportunities in fast-growing sectors decarbonising the economy, from heating to storage, transport and more.

This is the latest step by the Cornwall Pension Fund, which has over £2.4 billion of assets under management, on its journey to achieve a net zero investment portfolio and to effect positive, real-world change.

It comes as Octopus Energy Generation is one of Europe’s largest investors in green energy, with a £7 billion portfolio of renewables and energy transition projects globally.

OETF launched in May last year with an investment in Cornwall-based heat pump business, Kensa Group to scale the roll-out of heat pumps in Britain. Unlocking this investment is helping rapidly grow the country’s green economy and delivering jobs. The fund backed Deep Green this year, a disruptor scaling groundbreaking data centre heat re-use tech. In their first project, they slashed heating bills at a Devon public swimming pool, as this innovation gives excess heat from data centres to sites hosting them for free.

It also invested in Cultivo, regenerating nature at scale across the globe, as the fund gears up to deploy investment into Cultivo’s land regeneration and reforestation activities.

Alex Brierley, co-head of Octopus Energy Generation’s fund management business, said: “It’s brilliant to be working with Cornwall Pension Fund to turbocharge the energy transition and invest in a sustainable future for generations to come. Through the Octopus Energy Transition Fund, we’re backing massively scalable sectors decarbonising our economy that will drive down bills for customers, boost local economies, and help us get to net zero quicker than ever before.”

Matthew Chapman, Investment Manager at the Cornwall Pension Fund, said: “We are delighted to be working with Octopus Energy Generation through this innovative fund. The Cornwall Pension Fund has ambitious climate objectives, and we want to drive real change through how we invest. Through this partnership with Octopus Energy, we can make widespread positive impact, actively investing in and benefiting from the transition to a low carbon economy.”