Octopus Renewables Infrastructure Trust PLC (LSE:ORIT) has announced investments worth up to £2mln in a new solar and battery storage development business.
Through an initial £0.7mln investment, the FTSE 250-listed fund, managed by Octopus Energy, will support the wholly owned businesses' development costs until 2025.
This new venture will target 350MW worth of projects already under development, Octopus said, with these later able to be sold or expanded as land rights and grid connections are offered.
“Investing in the early stages of creating new renewable energy projects brings huge growth opportunities,” chairman Phil Austin said. “[This is] both from value creation through successfully delivering projects, and from the exclusive opportunity to invest into the construction of the sites once they are ready to build.”
Octopus’ new business will receive exclusive development services from specialist BLC Energy to aid in getting projects approved and on the UK’s grid.
The company expects to invest some £2mln in the new business by 2025, with further funding able to be granted up to 2029 to bring the firm’s projects to “ready-to-build status”.
Shares in the fund fell 0.4% to 92.47p.