TOKYO: Mitsubishi Electric Corporation has announced a strategic investment in Pale Blue Inc., an innovative startup specializing in water-based propulsion systems for satellites, through its ME Innovation Fund. This move marks the fund’s 13th investment as it accelerates efforts toward advancing sustainable technologies in the fast-evolving global space sector.
Mitsubishi Electric’s Vision for Sustainable Space Technology
As the number of satellite launches surges and space constellations become mainstream, the demand for safer, more cost-effective, and eco-friendly satellite propulsion systems has grown significantly. Propulsion systems—akin to the engines of spacecraft—are vital for executing orbital transfers, maneuvering satellites, and fulfilling complex mission requirements. In response, Mitsubishi Electric’s investment signals a milestone in its commitment to technical innovation and sustainability in outer space.
Komi Matsubara, Executive Officer and Vice President of Business Innovation at Mitsubishi Electric, remarked, “Pale Blue possesses the potential to realize safety, efficiency, and environmental compatibility in space transportation through its innovative water-based propulsion technology. We believe that such sustainable propulsion solutions are essential for the future of space infrastructure and are closely aligned with the direction of our space business.”
Jun Asakawa, Co-Founder and CEO of Pale Blue, stated, “We are truly honored to receive an investment from Mitsubishi Electric, a company with a strong track record and advanced technologies in the field of space systems. … We will further enhance the reliability of our technology and work toward realizing our vision of establishing mobility as a core element of the space industry.”
Further, in a press release, Pale Blue said, “We have received our first investment from CVC Fund of Mitsubishi Electric Corporation, which is engaged in the space industry (operated by Global Brain Corporation). Going forward, we will promote technological collaboration in space-related businesses to enhance competitiveness and expand our business.”
“We have completed a third-party allotment of shares to venture capital and CVC funds. With this funding, we will strengthen our production and quality control systems. We will actively work on establishing the development base for production technologies, enhancement of our team, and improving quality management. In research and development, we will continue to work on the development of Hall-effect thruster and its demonstration in space to further expand our product lineup,” it added.
Founded in 2020 as a University of Tokyo spin-off, Pale Blue Inc. develops, manufactures, and markets a proprietary propulsion system for small satellites utilizing water as its propellant. This approach offers a stark contrast to conventional systems that often rely on hazardous chemicals. Pale Blue’s technology is underpinned by two principal innovations:
Low-Pressure, Ambient-Temperature Water
Vaporization: Leveraging the vacuum of space, water is vaporized without requiring high temperatures, enhancing safety and energy efficiency.
Low-Power Plasma Generation with Oxidation Resistance: This mechanism propels satellites effectively while maintaining structural and system integrity.
The advantages are profound. Water is non-toxic, abundantly available, cost-effective, and environmentally benign, making Pale Blue’s solution not only technically credible—as evidenced by successful in-orbit demonstrations—but also a significant advancement toward sustainable space operations. The company is also ramping up its R&D and manufacturing capabilities with a dedicated production engineering development site.
The ME Innovation Fund: A Platform for Open Innovation
Mitsubishi Electric’s ME Innovation Fund was launched in January 2022 in partnership with Global Brain Corporation, a leading venture capital firm. With a planned investment of five billion yen over ten years, the fund targets startups worldwide, aiming to foster breakthrough technologies primarily in digital and green-innovation domains.
The fund’s strategic objectives include:
- Investment in global startups aligned with Mitsubishi Electric’s business, particularly those with a focus on sustainability and digital transformation.
- Business development support beyond financing, such as management guidance and technical expertise.
- Promotion of open innovation, facilitating collaboration between the corporate giant and agile startups for mutual growth.
Global Brain’s role as the general partner ensures the fund leverages extensive hands-on support and a robust innovation ecosystem. Mitsubishi Electric and Global Brain both view the ME Innovation Fund as a model for creating new industries and addressing rapidly evolving business needs, including sustainability and technology advancements.
The investment in Pale Blue exemplifies the fund’s vision: uniting large-scale industrial strengths with the creative problem-solving drive of startups. Mitsubishi Electric intends to deepen technical collaboration with Pale Blue to further enhance the reliability, competitiveness, and sustainability of its own space business while supporting Pale Blue’s mission to establish “mobility”—the ability to move freely in space—as an industry standard.
As the space economy accelerates—with burgeoning satellite launches, rapid adoption of satellite constellations, and increasing private sector participation—the relevance of efficient, safe, and environmentally conscious propulsion systems will continue to rise. By backing Pale Blue, Mitsubishi Electric positions itself at the forefront of this transformation, championing innovation that benefits both the industry and society at large.
With revenues of 4,191.4 billion yen (U.S.$37.8 billion) for the year ended March 31, 2021, Mitsubishi Electric has been a global technology leader in fields ranging from information processing and communications, space systems, to energy and transportation for over a century.
Global Brain is an independent venture capital firm managing over 170 billion yen in assets, specializing in supporting startups and fostering open innovation through partnerships across industries.
