Tokyo-based energy tech startup Sustech has raised $50 million in its latest funding round, pushing its valuation to over $800 million. This marks a significant increase from the previous year’s valuation of 35 billion yen ($236 million), representing a 3.5-fold jump. The company aims to capitalize on the surging global demand for cleaner energy solutions, as highlighted by the International Energy Agency's projection that investment in clean energy technology and infrastructure will reach $2 trillion this year—double the investment in fossil fuels.

Founded in 2021, Sustech specializes in building renewable power plants designed to help clients reduce their carbon footprints. The company also develops AI-driven systems for predicting power generation and optimizing profits from power sales in the wholesale market. The latest funding round was led by NGK Insulators, a ceramics manufacturer already partnering with Sustech in the energy storage sector.

The capital raised will primarily support the construction of new renewable energy plants and enhance AI technologies to improve power grid stability, a critical factor as the integration of wind and solar resources increases. Sustech's diverse investor base includes Sumitomo Mitsui Trust Group and Katsunori Sago, former Chief Strategy Officer of SoftBank Group.

Sustech is also planning a Nasdaq market debut by early 2028, reflecting its ambitions for growth. Additionally, the startup has established a 150 billion yen fund in collaboration with property developer Tokyu Land and a 20 billion yen fund with transport operator Ryobi Holdings to advance its renewable energy initiatives.

This robust funding and valuation position Sustech as one of Japan's promising energy tech startups, on the verge of joining the ranks of Japanese unicorns valued at over $1 billion.