Bloom Energy BE announced that it will extend the existing partnership with SK Engineering and Construction (SK E&C), an affiliate of SK Group, to expand its operation in the commercial hydrogen market. The company has plans to introduce hydrogen-powered fuel cells and electrolyzers that produce renewable hydrogen. The products will be introduced in the South Korean market in 2021 through SK Group.
Bloom Energy — through its existing tie-up with SK E&C — has already sold 120 megawatts (MW) of fuel cells in South Korea, and generated more than $1 billion in equipment and future services revenues for Bloom.
Opportunity in South Korea
The South Korean government, which is aiming to lower emissions from electricity generation units, has a goal of deploying 15,000 MW of fuel cells in the country by 2040. Hence, there is immense opportunity for fuel cell shipments in South Korea and to benefit from the same.
Bloom Energy expects to ship a 100 kilowatt pilot Server to South Korea by 2020-end to power a SK E&C facility in early 2021. The second phase, a 1 MW hydrogen Server installation, is targeted for a 2022 deployment. Eventually, both these companies expect to sell 400 MW of fuel cells per year in the Korean market and assist the government in meeting the fuel cell installment target.
Rising Demand for Clean Energy
The demand for clean energy is rising on a global scale. Utilities are moving away from coal units, and focusing on generating electricity from natural gas as well as renewable sources. They are also investing in the clean energy technology. Achieving zero emissions in many sectors will depend upon making massive amounts of renewable hydrogen. Bloom Energy has been awarded 19 patents for the solid oxide electrolyzer technology that helps in the production of renewable hydrogen and can reduce rising emissions by producing clean energy.
Apart from Bloom Energy, companies like Ballard Power BLDP, Plug Power, Inc. PLUG and FuelCell Energy, Inc. FCEL are working on the fuel cell technology to supply clean energy.
Zacks Rank & Price Performance
The stock currently holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, shares of the company have moved up 158.4%, outperforming the industry’s 8.8% growth.
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FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
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