Fuel Cell Revolution: Bloom Energy Shares Rocket on Major Utility Deal

Investors in Bloom Energy enjoyed a fantastic Friday as the renewable energy company’s stock rose 47.8%. On Thursday night, Bloom Energy said it has agreed to supply electric utility American Electric Power with up to 1 gigawatt of fuel cells.

The statement on Thursday night follows Bloom’s dismal earnings report from last week, which was offset by Bloom’s announcement of an agreement to install an 80-megawatt fuel cell plant for SK Eternix of South Korea. A gigawatt is 1,000 megawatts. That’s why investors are reacting so strongly to yesterday’s announcement, which is 12.5 times bigger than that one.

AI and Clean Energy: Bloom Energy’s Game-Changing Agreement with AEP

According to Bloom, AEP plans to purchase Bloom’s fuel cell units and install them at the locations of several of its clients’ AI data centers. In 2025, more fuel cells will be ordered and rapidly deployed. The rollout will start with an initial order of 100 MW of fuel cells, which is more than what was announced last week.

Overall, the AEP agreement aims to deploy almost 77% of the 1.3 GW of fuel cells that Bloom has already delivered in its 23 years of operation. While Bloom did not specify the size of the AEP deal in terms of revenue, a comparison of Bloom’s revenue history since 2014 indicates that the AEP deal may ultimately generate revenues for Bloom that are significantly higher than $7 billion.

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