Startups to Watch – Yellow Duck
- Content Kesowa
- Jul 16
- 4 min read
Welcome to our "Startups to Watch" series, where Federal Synergies highlights groundbreaking companies that are reshaping industries through innovative technology and bold approaches to challenging problems.
Who is Yellow Duck?
As the world races toward decarbonization, innovative startups are emerging as critical players in the renewable energy sector. Among them, Yellow Duck stands out as a Japanese pioneer focused on harnessing the power of the ocean for clean energy and environmental restoration. They believe that real change comes from ideas that work with nature, not against it. Their mission is crystal clear: to create solutions that help people and nature coexist in harmony.
Based in Kobe, Japan, Yellow Duck is a cleantech venture led by CEO Shigeo Nakayama and has made its public debut with a splash at the Marinetech Grand Prix 2023, where they won the Grand Prize for their pitch on ocean-based hydrogen generation and Direct Air Capture (DAC) technology.
Their approach? Tap into renewable marine energy—specifically, wave power—to produce clean hydrogen and capture carbon from the atmosphere. It’s radical in its elegance and groundbreaking in its potential.
The Wave-DAC System: Direct Air Capture and Hydrogen Generation
A particularly noteworthy innovation from Yellow Duck is the Wave-DAC® system. This technology uses wave energy to power the direct air capture (DAC) of carbon dioxide from the atmosphere, a process known as carbon dioxide removal (CDR). The system also produces hydrogen through the electrolysis of filtered seawater, making it a dual-purpose solution for climate mitigation and clean energy production.
The mechanism is elegant in its simplicity. The Wave-DAC® is a floating, egg-shaped structure that tilts with the motion of the waves, generating electricity. This electricity is then used to drive the electrolysis process, which splits water into hydrogen and oxygen. Simultaneously, the system captures CO₂ directly from the air, storing it or utilizing it for other applications.
Yellow Duck’s R&D efforts have already confirmed the effectiveness of CO₂ capture and hydrogen production using relatively small waves (about 30 cm in height). The company is now focused on scaling up and improving the efficiency and stability of the system through longer-term demonstration experiments.
Marine Renewable Energy in Japan
Japan’s geography and energy needs make it an ideal location for marine renewable energy development. The country has a long coastline, abundant wave and tidal resources, and a strong industrial base. The Japanese government has set ambitious targets for offshore wind and marine energy, aiming for 10 GW of offshore wind capacity by 2030.
Several other companies and projects are also advancing Japan’s marine energy sector. For example, Proteus Marine Renewables recently installed Japan’s first 1.1 MW tidal turbine in the Naru Strait, marking a milestone for tidal energy in the country. Companies like Marine Power Systems are bringing floating wind technology to Japan, leveraging partnerships with local firms to scale up deployment.
Yellow Duck’s approach complements these efforts by focusing on wave energy and integrating environmental benefits, setting it apart from competitors.
Why Yellow Duck Matters?
Yellow Duck’s significance extends beyond its technological innovations. The company represents a new model for sustainable development, where energy generation and environmental restoration go hand in hand. By integrating renewable energy with marine conservation, Yellow Duck is helping to create a more resilient and sustainable future for coastal communities.
In a world facing the twin crises of climate change and biodiversity loss, Yellow Duck’s work is both timely and essential. Their technology has the potential to reduce carbon emissions, support marine ecosystems, and provide clean energy to remote and coastal areas.
Even their prototype speaks to their thoughtful design ethos—Yellow Duck’s prototype uses an inflatable yellow duck to keep the device afloat and visible to ships, emphasizing both functionality and safety. It’s an emblem of their commitment to practical, friendly innovation that engages both engineers and everyday observers alike.
Recent Milestones and Achievements
Yellow Duck has made significant strides in recent years, positioning itself as a leader in Japan’s marine renewable energy landscape:
Demonstration Projects: In January 2025, Yellow Duck began a demonstration experiment for marine renewable energy equipment at Hakata Fishing Port in Fukuoka. This project, supported by the city, marks a critical step toward real-world validation of their technology.
Awards and Recognition: The company was awarded the Startup Award in the Sustainability category at Plug and Play Japan’s Japan Summit 2024. It has also been selected for multiple accelerator programs and business competitions across Japan.
Industry Engagement: Yellow Duck has presented at major innovation events, including Fukushima Tech Create 2025 and Boost Up Okinawa 2024. The company collaborates with leading universities and energy companies to advance its research and development.
Environmental Stewardship: Beyond energy, Yellow Duck is involved in blue carbon ecosystem restoration projects, working to protect and regenerate coastal environments.
Where They’re Headed
Backed by accelerators like Tech Planter and connected to Japan’s growing green-tech ecosystem, Yellow Duck is laying the groundwork for:
Larger-scale hydrogen production powered entirely by marine energy
Deployable DAC units that can be installed in coastal regions
Partnerships with island nations vulnerable to sea level rise
They’re also cultivating a community of like-minded thinkers—engineers, biologists, designers, philosophers—who believe that the future should feel less like a machine and more like a forest. And that’s exactly what makes Yellow Duck so unique.
Final Thoughts: More Than a Startup
Yellow Duck isn’t just a company. It’s an invitation. An invitation to slow down. To breathe. To rethink how we solve problems. To remember that nature, when respected, already holds the answers we seek. In their quiet, contemplative way, Yellow Duck is doing something extraordinary: reminding us that simplicity isn’t weakness. It’s wisdom. And in a chaotic, overheating world, that might just be the boldest innovation of all.
So, keep your eyes on Yellow Duck. They’re not just a startup to watch. They’re a philosophy to follow.
We came across Yellow Duck through their feature at Expo 2025 Osaka Kansai on YouTube, and their innovative, nature-driven approach strongly resonated with our vision. (Watch their journey here)
Blog by Rimashree