Tokyo Gas is paying $200m for a 9.7% stake in the clean energy utility while existing backer Origin energy is kicking in another $50m.

Energy utility Tokyo Gas has invested $200m in UK-headquartered clean energy supplier Octopus Energy Group at a $2.1bn valuation.

Another energy utility Origin Energy agreed in May this year to pay approximately $327m over four years for a 20% stake in Octopus, and is supplying approximately $50m for the company alongside the Tokyo Gas funding, which will give it a 9.7% stake.

Octopus provides electricity from renewable sources for some 1.8 million UK customers, both directly and through distribution partners such as Co-op Energy, M&S Energy, Affect Energy, London Power and Tesla Power.

The latest investment was made in connection with the formation of a joint venture called TG Octopus Energy that will be partially funded by Tokyo Gas, and which will operate in its home country of Japan.

Tokyo Gas president Takashi Uchida said: “I believe Octopus Energy, which is delivering diversified tariffs and services using digital technology through low costs in the UK and overseas, is the most appropriate partner for Tokyo Gas.

“Through this partnership, we will contribute to the achievement of a better lifestyle for customers by realising value creation and delivery tailored to every one of them.”