Mitsubishi Electric’s ME Innovation Fund Backs Pale Blue, Developer of Water-Based Propulsion Systems for Satellites
Mitsubishi Electric Corporation announced that its ME Innovation Fund has made a strategic investment in Pale Blue Inc., a Japan-based startup specializing in the development, manufacturing, and sales of propulsion systems for small satellites that use water as a propellant. This marks the 13th investment by the ME Innovation Fund since its inception, highlighting Mitsubishi Electric’s continued commitment to supporting next-generation space technologies.
The global space industry has been experiencing rapid growth in recent years, driven in large part by the increasing number of satellite launches. Businesses worldwide are leveraging satellite constellations—large networks of interconnected satellites—to enable advanced communication, Earth observation, navigation, and other applications. As these networks expand, the demand for reliable propulsion systems, which serve as the driving force for satellite maneuvering, orbital transfers, and station-keeping, has risen sharply.
Propulsion technology plays a vital role in determining the efficiency, safety, and longevity of satellite missions. Industry stakeholders are now placing greater emphasis on systems that not only deliver performance but also offer improved safety, cost efficiency, and reduced environmental impact. In this context, innovative solutions that move beyond conventional propellants are attracting significant attention from both government and commercial operators.
Founded in 2020 as a deep-tech venture originating from the University of Tokyo, Pale Blue has positioned itself at the forefront of this shift. The company has been developing proprietary propulsion systems that use water as the primary propellant, offering an alternative to traditional chemical propellants. Its approach is built upon two core technologies:
- Low-pressure, ambient-temperature water vaporization – a method that allows water to be used safely and efficiently in space propulsion without requiring extreme temperatures or pressures.
- Low-power plasma generation with oxidation resistance – enabling sustained performance and durability in the harsh space environment.
By integrating these technologies, Pale Blue aims to make space mobility safer, more sustainable, and more accessible. Compared to conventional propellants, water offers multiple advantages—it is inherently safer to handle, widely available, environmentally friendly, and far more cost-effective to source and transport.
Pale Blue has already demonstrated the viability of its systems through multiple in-orbit tests using small satellites. These successful demonstrations have reinforced the technical credibility and reliability of its designs, paving the way for broader commercial adoption. In parallel, the company is investing in its own production capabilities, including the establishment of a dedicated production engineering development site, to support future scale-up and meet growing demand from satellite operators.
For Mitsubishi Electric, this investment is both strategic and collaborative. The company plans to work closely with Pale Blue to integrate its innovative propulsion solutions into future projects, thereby strengthening its own space business portfolio. This collaboration is also aligned with Mitsubishi Electric’s broader mission to contribute to the sustainable utilization of outer space, ensuring that space activities remain safe, efficient, and environmentally responsible.
Leadership Perspectives
Jun Asakawa, Co-Founder and CEO of Pale Blue Inc., expressed enthusiasm about the partnership, stating:
“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. At Pale Blue, we aim to contribute to the expansion of activity in space by providing mobility—that is, the capability to move freely in space—through our propulsion systems. Through collaboration with Mitsubishi Electric, 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.”
Komi Matsubara, Executive Officer (Vice President, Business Innovation) at Mitsubishi Electric Corporation, underscored the strategic value of the investment:
“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. With this investment as a starting point, we look forward to deepening technical co-creation with Pale Blue and spurring innovation and the creation of social value in the space industry.”
