---

Nuclear fusion energy is gaining global attention as a sustainable energy source that has the potential to simultaneously solve both energy and environmental problems. In October 2024, Mizuho made our first investment in a nuclear fusion company outside Japan, investing in Zap Energy, a US-based firm focused on commercializing fusion energy using Z-pinch technology. Through this investment and partnership, Mizuho aims to support Zap Energy's efforts while contributing to the strengthening of Japan's industrial competitiveness and the achievement of carbon neutrality for society and clients.

Project Flow

STEP 1: Inquiries & Requests
STEP 2: Research & Analysis
STEP 3: Execution

At Mizuho, we have identified fusion energy as a key solution for achieving carbon neutrality and enhancing energy security while deepening our understanding of the technology and industry. In collaboration with Zap Energy, a company eager to develop its technologies and expand into the Japanese market, we have conducted thorough research and analysis. This effort has culminated in the establishment of a strategic partnership, including an investment in the firm.

Challenge

Supporting fusion energy startups as a key step toward achieving carbon neutrality

Fusion energy is the immense power released when light atomic nuclei fuse to form heavier nuclei. Research is advancing the technology towards commercial readiness. With fusion's main fuel, deuterium, available from seawater, fusion energy is regarded as a promising solution for carbon neutrality. Among other benefits, it avoids natural resource depletion and drastically reduces the emission of greenhouse gases such as carbon dioxide during the fusion process. Additionally, there are systems that can generate electricity on demand and are recognized for their high level of safety and environmental sustainability. Along with large-scale international projects like the International Thermonuclear Experimental Reactor (ITER)—involving collaboration among 33 countries—fusion energy research and development by startups, particularly in Europe and the US, has accelerated rapidly in recent years.

Mizuho has been focusing on fusion energy as a potential new power generation method for the energy transition. The Industry Research Department of Mizuho Bank and Mizuho Research & Technologies have conducted studies on the fusion energy sector. Given fusion energy's highly specialized nature and the fact that it is still in the experimental stage, evaluating the technology has been challenging. Experts are divided on which fusion method will achieve a breakthrough, and some remain skeptical about fusion energy’s potential as a viable next-generation energy source. To navigate this, Mizuho has engaged with multiple experts, including clients, and developed our own evaluation criteria for startups to prepare for supporting fusion energy development.

Against this backdrop, Mizuho received an inquiry for collaboration from Zap Energy, a US company focused on developing Z-pinch fusion energy technology, which offers the potential for a compact and simple reactor design.

Zap Energy was founded as a spin-off from a joint research initiative between the University of Washington and the Lawrence Livermore National Laboratory, and has been securing funding and advancing technology development with the goal of establishing and commercializing its technology. A key factor behind its reaching out to Mizuho was Japan's strong ecosystem of companies with world-class core technologies that can be applied and utilized in the fusion energy sector, as well as the potential demand for fusion power in the Japanese market. With our extensive and robust client base—including companies with expertise in fusion energy—and our focus on industrial research, Mizuho was seen as a valuable partner for providing financial support and facilitating connections between Zap Energy and high-tech companies and potential collaborators. 

How nuclear fusion power and Z-pinch work

Zap Energy's co-founders, from left to right: Chief Technology Officer Brian A. Nelson, Chief Executive Officer Benj Conway, and Chief Science Officer Uri Shumlak.

Solution

Establishing a partnership including investment to become a financial institution with fusion energy expertise

Mizuho began considering Zap Energy as a potential investment target and strategic partner due to our ambition to build expertise in fusion energy, enhance our presence in the sector, share knowledge with clients, and strengthen Japan's industrial competitiveness. Through in-depth research on the players and market surrounding fusion energy, we recognized that Japan was in a strong position, with industry-leading technologies developed through initiatives like the ITER program and the largest number of active research facilities globally. However, we also noted the accelerating R&D efforts in Europe, the US, and China. Based on these circumstances, we not only evaluated Zap Energy's potential but also assessed whether or not the partnership could contribute to Japan's industrial competitiveness. In the end, we identified collaboration with Zap Energy as an opportunity to establish fusion energy technology and enhance Japan's global presence in the area. This perspective was repeatedly discussed and refined, leading to consensus among all stakeholders.

In addition to strategy development, we worked closely with Zap Energy on engaging with stakeholders, engaging employees from various levels of both companies to align on goals and expectations. Building on the trust established through this collaboration, Mizuho took steps such as signing a memorandum to access more detailed information, ultimately implementing the investment through our dedicated subsidiary Mizuho Innovation Frontier. This investment marks the first time a Japanese financial institution has invested in a fusion reactor development company outside Japan and makes Mizuho Zap Energy's first strategic investment partner.

The “Century” fusion power prototype, which is roughly the size of a double-decker bus.

Result

Driving the advancement and commercialization of fusion energy technology to strengthen Japan's industrial competitiveness

Through our investment in Zap Energy, Mizuho aims to be a strategic partner bringing about collaboration between Zap Energy and Japanese companies, and will focus on four main areas: Fundraising support, technological collaboration with Japanese companies, support for market entry into Japan, and knowledge sharing and co-creation.

Fusion energy technology development requires substantial funding, making fundraising support crucial. As a strategic partner that has invested in the firm, Mizuho will provide Zap Energy with advice on fundraising methods. Additionally, we will promote technological collaboration with Japanese companies by facilitating connections between Zap Energy and Japanese firms that have expertise in fusion power generation, helping to enhance Zap Energy's technical capabilities. After the announcement of the investment, we received inquiries from clients about how they could contribute to fusion energy development, which led to us making introductions for multiple companies. Furthermore, with a focus on future market entry into Japan, we will offer market entry support by facilitating connections with potential Japanese business partners.

At the core of our strategy is knowledge sharing and co-creation. By supporting Zap Energy, we will enhance collaboration with Japanese companies and industries and leverage the insights we gain. As a financial institution with deep expertise in sustainability and the ability to foresee future industry trends, we are committed to advancing sustainable energy solutions and contributing to the achievement of carbon neutrality.

Mizuho believes that while reinforcing current efforts for the energy transition is important, long-term strategies are also necessary. The development of fusion energy technology holds the potential for significant societal impact. Advancing toward practical implementation is expected to not only transform the energy industry but also reshape carbon neutrality roadmaps across all industry sectors.

In light of such potential, we will continue support new energy solutions and strengthen Japan's industrial competitiveness through this investment and partnership with Zap Energy.

A conceptual design of a pilot plant using Z-pinch fusion technology

Partner's Voice

Mr. Ryan Umstattd
Vice President of Product & Partnerships
Zap Energy Inc.

Forming strong partnerships with investors is crucial for our success and the investment from Mizuho exemplifies the type of strategic partnership that can have an outsized impact on a company's success, direction, and value creation. Through our meetings with the Mizuho team, we came to determine they were the type of partner that would both roll up their sleeves and help work through immediate challenges and also be there for the long term, supporting Zap Energy through multiple milestones, from our current stage to the delivery of our commercial power plants.

We are particularly excited about this partnership because it provides a foundational stone in what we believe will be one of the most important fusion markets globally. One day we expect fusion to produce power in well over a hundred countries, but it is our belief that the U.S. and Japan will be among the very first to adopt and fastest to scale. We are proud to be working with Mizuho towards our mission to realize the transformative potential of fusion energy.

Mizuho's voice

Kotaro Tanaka
Sustainable Business Promotion Department
Mizuho Financial Group

Shohei Yamashita
Sustainable Business Promotion Department
Mizuho Financial Group

Fusion energy has the potential to address both energy and environmental challenges, making it a highly promising next-generation power source. We are honored to partner with Zap Energy as we work towards a future shaped by fusion energy.

At Mizuho, we are dedicated to supporting Zap Energy's efforts and, through this collaboration, sharing the knowledge and insights we gain with our clients and the broader industry. Our aim is to contribute to the growth of the fusion energy market.

While it may be rare for a Japanese financial institution to invest in startups pursuing disruptive innovation outside Japan, we believe this proactive approach reflects our commitment to innovation. We will continue to work closely with Zap Energy and other stakeholders—across academia, industry, and government, both in Japan and globally—toward a sustainable future.

* The content of this article is based on information available at the time of the interview.