April 16th, 2025 — Mitsui & Co., Ltd. a global conglomerate with a growing clean energy portfolio, has made three strategic investments over the past year in companies at the forefront of carbon management. Powerhouse Innovation played a key role in these transactions by providing Mitsui’s Green Innovation Department with deal sourcing, techno-economic analysis, and due diligence support.
In December 2024, Mitsui announced its investment in Heirloom, a leading innovator in direct air capture (DAC) technology. Mitsui has since followed with investments in Twelve and Infinium, two companies pioneering different pathways to produce sustainable aviation electrofuels (e-SAF). These investments reflect a commitment to building a future where carbon dioxide is actively managed and utilized as a resource.
What is limiting the deployment of DAC and e-SAF?
Customer cost: DAC is easier to measure and potentially more scalable than other carbon removal technologies, but it’s expensive, often costing buyers over $500/tCO2. Similarly, e-SAF is estimated to cost over $8,000/tonne of SAF, about 10 times the price of conventional aviation fuel.
Capital cost for DAC: Capital investment and operational expenditures, such as materials replacement, are the major drivers of cost for DAC today – up to 75%.
Energy cost for e-SAF: production of e-SAF consumes tremendous amounts of electricity (around 100 kWh per gallon of e-SAF), so it is critical to use the lowest cost carbon-free electricity available, when it is available.
Offtake: In order to finance new project development, both DAC and e-SAF companies need to have contracted buyers to guarantee revenue.
How do Heirloom, Twelve, and Infinium meet these challenges?
Low-cost materials: Heirloom utilizes low-cost limestone to absorb CO2, reducing upfront capital investment and long-term operational expenses associated with sorbent degradation.
Flexibility: Twelve’s Opus™ CO2 electrolyzers operate near ambient temperature, allowing for quick adjustments to power consumption which may be required given fluctuating electricity costs, resulting in a more cost-efficient plant.
Scale: Infinium launched the world’s first commercial-scale e-SAF facility in 2023 and is currently developing an even larger project in West Texas.
How did Powerhouse Innovation facilitate these investments?
Sourcing: Powerhouse Innovation supported Mitsui in curating a landscape of high-potential startups, identifying and evaluating dozens of investment opportunities.
Techno-economic analysis: Powerhouse Innovation assisted Mitsui in conducting in-depth techno-economic analyses of each technology, modeling cost trajectories and evaluating competitive positioning.
Diligence: Powerhouse Innovation helped Mitsui draft investment memos for each transaction, covering technology feasibility, team assessment, and market benchmarks.
Powerhouse Innovation is proud to support Mitsui in identifying and evaluating leading climate technology startups. We look forward to continuing our collaboration with the Green Innovation Department at Mitsui to drive innovation and scale impactful solutions. To learn how Powerhouse Innovation can help your firm engage with the energy tech startup ecosystem, reach out to us here.
Authored by Dr. Octavi Semonin, Senior Director of Technology & Client Services.
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