Igloo Energy is receiving an investment of up to £20 million from global utility firm Osaka Gas, in exchange for a minority stake in the supplier.
Formed in 2017, Igloo currently supplies more than 85,000 residential customers. A spokeswoman refused to confirm the scale of Osaka’s investment, confirming only that it was a “high single-digit minority figure” to begin with.
Igloo said the investment will fast-track the development of its home services arm, Igloo Works, aimed at reducing how much energy Igloo’s customers use at home.
Japanese firm Osaka, which serves more than 6 million customers in Japan, already has a 50 per cent in SES Water, which it purchased in 2013.
Matt Clemow, chief executive and co-founder of Igloo Energy, said: “Osaka Gas is one of the world’s largest installers of domestic combined heat and power (mCHP) boilers.
“Their experience in rolling out alternative heating technology to consumers’ homes at scale will be invaluable to Igloo as we undertake to do the same in the UK.
“We’re delighted to be working with a strategic partner who shares our vision for the future of energy allied with the scale and experience to help us achieve our ambitions.”
Eiji Natsuaki, associate director of Osaka Gas UK, said: “In the UK, as a number of renewable generation facilities have been installed in recent years, there has been an increasing necessity of demand side energy flexibility.
“With the prospect of great demand growth in this area, we look forward to participating in Igloo Energy’s strategy to develop and roll out new services related to demand side energy flexibility.
“Through the collaboration with Igloo Energy in the household energy supply business in the UK, we aim to enhance our expertise in business operation and new services development in an advanced energy market to expedite our business expansion in the field of demand side energy flexibility.”