Bloom Energy (NYSE: BE) announced today that it is entering the commercial hydrogen market by introducing hydrogen-powered fuel cells and electrolyzers that produce renewable hydrogen. These products will be introduced for the first time to the South Korean market in 2021 through an expanded partnership with SK Engineering and Construction (SK E&C), a subsidiary of the SK Group. Bloom’s technologies are critical for South Korea to execute its government-mandated hydrogen economy roadmap. Bloom’s existing partnership with SK E&C has already sold 120 megawatts (MW) of fuel cells in South Korea, generating more than $ 1 billion in equipment and future service revenue for Bloom.
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Electrolyzer technology in the future hydrogen economy (Graphic: Business Wire)
“Bloom Energy servers are a proven market leader in clean, reliable and rugged on-site power,” said KR Sridhar, founder, president and CEO of Bloom Energy. “This expansion of our product offering enables carbon-free transportation and electricity solutions. Innovation and execution are core principles of our business, and we are excited about the opportunity to advance the hydrogen economy with long-time partner SK E&C. “
Bloom Energy announced in June 2019 that its fuel cells could run on hydrogen to generate electricity without carbon. By the end of 2020, Bloom hopes to send a 100-kilowatt pilot server to South Korea to power a SK E&C facility in early 2021. The second phase, a 1 MW hydrogen server facility, is destined for deployment in 2022. Both companies are committed to fully funding and financing these two phases.
“Our three-year collaboration with Bloom Energy has reinforced our view that Bloom’s fuel cell technology is the best in the world,” said Jason Ahn, CEO of SK E&C. “Given the ambitious Korean government directive to deploy 15,000 MW of fuel cells by 2040, we forecast to sell 400 MW per year of fuel cells in the future.”
Bloom Energy’s core technology is based on research by its founders on the use of electricity generated by a solar panel to produce fuel and oxygen on the planet Mars for NASA. Bloom Energy Servers reversed this process by incorporating fuel and air to generate electricity. Bloom is taking advantage of this technology by taking renewable energy from the ground and producing hydrogen using solid oxide electrolyzers. Renewable hydrogen, when produced in this way, can power cars, power rugged AlwaysON microgrids, or be injected into natural gas pipelines to reduce carbon emissions.
“SK Group is the leading provider of oil and gas in South Korea with 3,400 service stations,” said Ahn. “The South Korean government’s roadmap requires the construction of 1,200 service stations to power 6.2 million hydrogen cars by 2040. Bloom’s electrolyzers would allow SK to play a vital role in helping to meet these goals.”
Since 2002, Bloom has received 19 patents for its solid oxide electrolyzer technology. Over time, it has improved efficiency and aggressively reduced the cost of its products, and it expects this trend to continue. This, combined with the rapid reduction in the cost of bulk solar and wind intermittent energy, should bring the hydrogen generated from Bloom electrolysers to meet the US Department of Energy target for more gas price parity. faster than other technologies.
Jack Brouwer, professor of Mechanical and Aerospace Engineering and director of the National Center for Fuel Cell Research (NFCRC) at the University of California, Irvine. “Solid oxide electrolyzers have the greatest potential for generating low-cost green hydrogen because of their superior efficiency, rapidly declining costs, and scalability. Achieving zero emissions in many sectors will hinge on producing massive amounts of renewable hydrogen. Because Bloom is the leader of the market in solid oxide technology, this announcement is very encouraging to me. “” data-reactid = “37”> “Generating low-cost hydrogen from intermittent renewable energy is a sine qua non for decarbonization” Jack Brouwer, professor of Mechanical and Aerospace Engineering and director of the National Center for Fuel Cell Research (NFCRC) at the University of California, Irvine. “Solid oxide electrolyzers have the greatest potential for generating low-cost green hydrogen because of their superior efficiency, rapidly declining costs, and scalability. Achieving zero emissions in many sectors will hinge on producing massive amounts of renewable hydrogen. Because Bloom is the leader of the market in solid oxide technology, this announcement is very encouraging to me. “
Bloom Energy’s mission is to make clean, reliable energy affordable for everyone around the world. The company’s product, the Bloom Energy Server, offers consistently reliable, highly reliable, and rugged electrical power that is clean, cost-effective, and ideal for microgrid applications. Bloom’s clients include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries. For more information, visit www.bloomenergy.com.
This press release contains forward-looking statements within the meaning of federal securities laws involving risks and uncertainties. Words like “anticipates”, “might”, “waits”, “aims”, “plans”, “projects”, “believes”, “seeks”, “estimates”, “may”, “may”, “will”, “” would “and similar expressions identify such forward-looking statements. These statements include, but are not limited to, statements about the Company’s ability to market its hydrogen products, the development of a hydrogen ecosystem, the anticipated results of the collaboration, and demand of the Company’s product in South Korea and market opportunities in 2020 and beyond, policy changes in the South Korean market and the effectiveness of products to reduce costs These statements should not be taken as guarantees of results and should not be considered an indication of future activity or future performance Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties, including those included in the Factor section Risk Report of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, most recent quarterly report on Form 10-Q and other risks detailed in Bloom’s SEC filings from time to time. when. Bloom assumes no obligation to publicly review or update any forward-looking statement, unless required by law.
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