A Leicester-based energy provider has contributed to helping the value of the UK’s net-zero tech sector almost double in a year.
Octopus Energy, now one of the biggest energy providers in Britain, is among the firms using technology to offset carbon emissions which saw their valuations rise from £17.8 billion in 2020 to £34.8 billion in 2021.
According to the Net Zero 2021 Report from start-up network Tech Nation the sector has been bolstered by the arrival of 10 new companies in the past year.
Meanwhile established companies have seen their values go up driven by funding rounds and stock market listings.
It comes as 20,000 delegates from almost 200 countries are descend on Glasgow for COP26 in a bid to draw up fresh plans to stop or at least slow the climate emergency.
Sustainable energy group Octopus Energy was valued at £3.6 billion after a funding round in September, and energy storage firm ITM Power jumped to a valuation of £2.1 billion after going public in June.
Octopus Energy was able to step in at the end of September to take on 580,000 customers from failed Hinckey-based energy company Avro after what Ofgem called a “competitive process” to get the best deal for Avro’s clients.
British electric vehicle manufacturer Arrival saw its valuation grow to £11.8 billion after listing on the Nasdaq in the US in March at a valuation of £9.5 billion), the biggest floatation for a UK tech company.
In all eight UK net-zero tech firms have passed the billion-dollar (£730 million) valuation “unicorn” status.
Investment in net-zero firms grew from £1.1 billion to £1.12 billion in 2021, but the figure was a major slowdown on the previous year.
Between 2019 and 2020, net-zero tech firms saw a jump in investment of £343 million.
Dr George Windsor, head of insights at Tech Nation, told the PA news agency: “If these net-zero companies are to fulfil their potential to save our planet, they need more help, support and funding from investors, UK pension funds and policymakers worldwide.”
Sweden topped the list of pounds invested per tonne of CO2 emitted, investing more than 10 times the amount in net-zero tech per tonne of CO2 emitted than any other nation.
Tech Nation called on investors and policymakers to prioritise supporting and investing in UK scale-ups ahead of Cop26 this week, setting a target of £11 billion by 2025.
