Tokyo, Oct 25 - Japan's energy tech startup Sustech is poised to raise $50 million from investors, elevating its valuation to over $800 million. This marks a significant increase from last year's valuation of 35 billion yen, reflecting a growing global demand for clean energy solutions.
The funding round, which values Sustech at approximately 124 billion yen ($816 million), positions the company closer to becoming one of Japan's few unicorns valued at over $1 billion. The surge in valuation is attributed to the robust global appetite for clean energy investments, projected by the International Energy Agency to reach $2 trillion this year, double the investments in fossil fuels.
Founded in 2021, Sustech specializes in constructing renewable power plants and developing AI-driven systems to enhance power generation predictions and optimize profits in wholesale electricity markets. The recent funding round was spearheaded by ceramics manufacturer NGK Insulators, which is already collaborating with Sustech on energy storage initiatives.
The capital raised will support the construction of renewable energy facilities and the development of AI technologies aimed at stabilizing power grids, which is becoming increasingly important as renewable resources like wind and solar are integrated into energy systems. Notable investors include Sumitomo Mitsui Trust Group and Katsunori Sago, former chief strategy officer at SoftBank Group.
Sustech aims for a Nasdaq market debut by early 2028 and has initiated a 150 billion yen fund in partnership with property developer Tokyu Land, as well as a 20 billion yen fund with transport operator Ryobi Holdings to further its renewable energy projects.