UK's Octopus Energy to trade renewable energy in China as ties strengthen

Jan 30 (Reuters) - Octopus Energy, Britain's largest electricity supplier by market share, said on Friday it has formed a joint venture with China's PCG Power to trade renewable energy in the Asian country, announced during UK Prime Minister Keir Starmer's state visit.

The partnership reflects Britain's push to export energy technology overseas and marks Octopus Energy's first foray into China, as Starmer seeks to improve ties, despite U.S. President Donald Trump's warning on getting into business with Beijing.

The new joint venture, Bitong Energy, aims to trade up to 140 terawatt hours of renewable power annually by 2030 and is targeting a valuation exceeding 500 million pounds ($687.25 million) within five years.

Octopus, which spun off its technology arm Kraken to focus on its energy operations, will contribute its energy trading software while PCG Power provides local expertise in China's renewable energy market, estimated to be at about 2.65 terawatt this year, according to Mordor Intelligence.

The venture expects to generate about 50 million pounds in annual profits by 2030, with half of those flowing back into Britain.

($1 = 0.7275 pounds)