Japan expands collaboration with foreign entrepreneurs by promoting Welsh startups

J-STORIES – From a shared love of rugby to shaping innovation, Japan and Wales kicked off 2025 with a showcase of fresh ideas and partnerships. The Welsh Startup Pitch and Networking event, held in Kitakyushu last month, aimed to strengthen cultural and economic ties while supporting Japan’s push for foreign investment. 

Kitakyushu was once heavily economically tied to coal mining, similar to South Wales. As Japan shifted away from coal in the mid-20th century, Kitakyushu faced a shrinking economy. In response, the city diversified into automobile manufacturing, robotics, and environmental technology. 

Today, Kitakyushu is a key player in Japan’s green technology and advanced manufacturing, successfully transitioning from a coal-based economy to an industrial powerhouse.

In 2019, a friendship between Kitakyushu rugby fans and Wales was forged when the Wales national team chose the city for its pre-tournament base. An open training session at Kitakyushu’s Mikuni World Stadium, Wales’ pre-World Cup training base, attracted an astonishing 15,000-plus fans.

The locals hospitality moved the team’s previous head coach Warren Gatland. “For the players to see all the flags and posters around town has been quite humbling. It’s brilliant that the city has got behind us. Ironically, there are so many similarities between Kitakyushu and Wales in terms of the history of the mining industry and the ports.”

‘Wales and Japan 2025’ is a year-long campaign by the Welsh government to stimulate new economic and cultural partnerships between the two nations, bringing long-lasting benefits to both countries. Two promising Welsh startups were invited to Kitakyushu to attend the Welsh Startup Pitch and Networking Event.

HydroWing, a tidal energy startup from Wales, told J-Stories that they had received a warm welcome from locals. They felt that although more than five years had passed since the World Cup, the hospitality for Welsh visitors had not waned.

Osian Roberts, Commercial Manager of HydroWing, said, “They understood our needs really well” and felt “super welcome.”

HydroWing is focused on producing clean energy through specialized fans that harness the power of the tides. Unlike other leading tidal energy producers, their innovative technology uses a compact mechanism with blade configurations that change direction automatically based on water flow. The compact design “makes the cost cheaper than everyone else to install, and much quicker,” says Roberts. 

HydroWing hopes that Kitakyushu, being a major port with proximity to leading cities in green energy, can adopt its tidal energy solution. In particular, the Goto Islands, located approximately 270km to the south, are also a strong candidate for green-energy startups. 

The Renewable Energy Basic Plan of Goto City was enacted in 2014, promoting the Goto Islands as the “Islands of Energy,” focusing on tidal and wind energy. By 2030, the Goto Islands plan to have a renewable energy output of 132.4%, thus becoming an exporter of clean energy.

Kitakyushu City recently announced its plan to invest ¥100 million yen into a startup fund officially launching in April of 2025. The fund will specifically aim to enhance tourism, support women’s initiatives, and promote sustainability. A new sustainability strategy office will be established, which would aid startups like HydroWing in implementing their projects within the area.

HydroWing sees Kitakyushu as a strategic location. “If our projects move forward, we would use its port as a base for operations,” said Roberts. “Japan’s geography makes it an ideal market for tidal energy. If land-based renewables are limited, the sea becomes the next logical option," he continued.

HydroWing staff attended the Welsh Startup Pitch and Networking Event to explore opportunities for collaboration and expansion in the Japanese market. While in Tokyo, they met with a major Japanese oil and gas company about transitioning to renewables and a large banking corporation that could help finance future projects.

HydroWing’s interest in Japan goes beyond its geographical access to the ocean. “I think utility companies in Japan, as well as oil and gas majors, are more interested in diversifying their portfolios to incorporate new renewable energy sources,” Roberts says.

Despite encountering challenges with the bureaucratic process to obtain marine licensing permission in Japan, “In Wales, you've probably got to do that yourself as a technology developer. It would just be easier to get from a project idea to project implementation in Japan,” he explains

After the 2011 Fukushima Daiichi nuclear power plant disaster, the call for Japan to transition away from nuclear energy grew significantly. From 2010 to 2023, Japan has decreased its energy derived from nuclear power plants by more than 70%. 

“There's more of a draw for tidal energy in Japan. Wales will just go nuclear,” explains Roberts.

Japan’s efforts to welcome foreign entrepreneurs go beyond Wales and Japan 2025. Organizations such as JETRO (Japan External Trade Organization) actively support global startups by providing opportunities to join the Japanese market, such as networking and financial incentives. A five-year plan announced in 2022 by JETRO will invest ¥10 trillion in startups by 2027.

Events like the 2024 Japan-Taiwan Innovation Summit and SusHi Tech Tokyo 2024 Global Startup Program help businesses showcase their ideas to Japanese investors.

While the push to open Japan's doors is steady, challenges such as the language barrier and cultural differences can make it difficult for overseas businesses to navigate the Japanese market. Yet, collaborative events like ‘Wales and Japan 2025’ make it easier for foreign investors to get involved in Japan’s evolving market.

“We have an opportunity to access a global market of 53 billion pounds annually. There are huge opportunities for progress,” says Roberts

Written by Lucas Maltzman

Edited by Takonori Isshiki, Randy Wagenheim    

Top video by HydroWing 

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