Bloom Energy Inc. Signs Agreements with Shell to Investigate Opportunities for Innovative Large-Scale, Renewable Hydrogen Energy Projects

Rhea-AI Summary

Bloom Energy Inc. partners with Shell Plc. to explore decarbonization solutions using Bloom's SOEC technology. The collaboration aims to develop large-scale hydrogen systems to reduce carbon footprint in hard-to-abate industries. Bloom's electrolyzer technology produces clean hydrogen, offering a green alternative to grey hydrogen. The company has the largest operating electrolyzer manufacturing capacity globally and successfully demonstrated a 4 Megawatt solid oxide electrolyzer at NASA Ames.

Insights

Energy Sector Analyst

The partnership between Bloom Energy Inc. and Shell Plc. is a strategic move within the energy sector that could potentially accelerate the transition to a low carbon economy. The focus on solid oxide electrolyzer (SOEC) technology underscores the industry's push towards cleaner hydrogen production as a means to decarbonize energy-intensive industries. Bloom's claim of having the largest operating electrolyzer manufacturing capacity signifies a competitive edge in the hydrogen production market.

Hydrogen, particularly 'green' hydrogen, is gaining attention as a key energy vector for the future. Bloom's SOEC technology, which offers higher efficiency compared to traditional PEM or alkaline electrolyzers, could reduce the cost of green hydrogen production, making it more viable for commercial and industrial use. This collaboration could also enhance Shell's sustainability profile by potentially integrating Bloom's hydrogen into their operations, thereby reducing their reliance on 'grey' hydrogen produced from fossil fuels.

Environmental Economist

From an environmental economics perspective, the alliance between Bloom Energy and Shell could have significant implications for the carbon market and the economics of decarbonization. The deployment of SOEC technology at scale could lead to a reduction in carbon emissions, particularly in 'hard to abate' sectors such as heavy industry and transportation. The increased production of green hydrogen could serve as a substitute for fossil fuels, potentially leading to changes in energy price dynamics and a shift in investment patterns towards more sustainable technologies.

Moreover, the economic growth sustained by American-made energy technology like Bloom's SOEC could contribute to job creation and technological leadership in the clean energy sector. However, the long-term economic impact will depend on the cost-effectiveness of the technology, regulatory frameworks, carbon pricing mechanisms and the speed at which the technology can be scaled and adopted by the market.

Market Research Analyst

Market trends indicate a growing demand for technologies that support decarbonization efforts. Bloom Energy's collaboration with Shell to develop and deploy SOEC systems for hydrogen production is aligned with these trends. The ability of Bloom's SOEC technology to produce more hydrogen per megawatt than other types of electrolyzers could position the company favorably within the green technology market. Additionally, the successful demonstration at NASA Ames research facility, producing 2.4 metric tons of hydrogen per day, provides a proof of concept that may attract further investment and industry attention.

Investors and stakeholders in the renewable energy and clean technology sectors should monitor the progress of this partnership closely, as it may influence market dynamics and the competitive landscape. The success of Bloom's SOEC systems in reducing the carbon footprint of industrial processes could lead to increased market share and potentially impact the stock valuations of companies involved in hydrogen production and related clean energy technologies.

Bloom’s engagement with Shell will help the advancement of decarbonization opportunities for emergent SOEC technology.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Bloom Energy Inc. (NYSE:BE) is teaming up with Shell Plc. (Shell) to study decarbonization solutions, utilizing Bloom’s proprietary hydrogen electrolyzer technology.

Bloom and Shell will collaborate with the goal of developing replicable, large-scale, solid oxide electrolyzer (SOEC) systems that would produce hydrogen for potential use at Shell assets.

“This technology could represent a potentially transformative moment for opportunities to decarbonize several hard to abate industry sectors,” said KR Sridhar, founder, chairman, and CEO of Bloom Energy. “As the world leader in solid oxide electrolyzer technology, we are poised to provide customers around the world with our proprietary, American-made energy technology to both reduce carbon footprint and sustain economic growth.”

Bloom’s SOEC technology can produce clean hydrogen at scale to augment or replace existing fossil fuel-powered “grey” hydrogen supplies produced at refineries by high carbon dioxide-emitting steam-methane reformation. Clean or “green” hydrogen is produced from water electrolysis, using renewable energy, essentially eliminating greenhouse gas emissions.

Demand for the Bloom Electrolyzer®, which is manufactured in California and Delaware, has been growing given the increased interest in the low carbon economy. According to an independent analysis, Bloom now has the largest operating electrolyzer manufacturing capacity in the world of any electrolysis technology, double that of its closest rival. It staged a highly successful demonstration commencing in May of this year with the world’s largest solid oxide electrolyzer, with a capacity of 4 Megawatts, where it produced 2.4 metric tons of hydrogen per day at the NASA Ames research facility in Mountain View, California. The high-temperature, high-efficiency unit produced significantly more hydrogen per megawatt (MW) than commercially demonstrated lower temperature electrolyzers such as proton electrolyte membrane (PEM) or alkaline.

About Bloom Energy

Bloom Energy empowers businesses and communities to responsibly take charge of their energy. The company’s leading solid oxide platform for distributed generation of electricity and hydrogen is changing the future of energy. Fortune 100 companies around the world turn to Bloom Energy as a trusted partner to deliver lower carbon energy today and a net-zero future. For more information, visit www.bloomenergy.com.

Forward Looking Statements

This press release contains certain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or the negative of these words or similar terms or expressions that concern Bloom’s expectations, strategy, priorities, plans or intentions. These forward-looking statements include, but are not limited to, expectations for a successful demonstration between the companies; amounts of hydrogen that may be produced during the project; and the scope and terms of the proposed partnership. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors including, but not limited to, developments in the hydrogen and energy markets, Bloom’s ability to deploy its electrolyzer technology at scale, and other risks and uncertainties detailed in Bloom’s SEC filings from time to time. More information on potential risks and uncertainties that may impact Bloom’s business are set forth in Bloom’s periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 15, 2024, as well as subsequent reports filed with or furnished to the SEC from time to time. Bloom assumes no obligation to, and does not intend to, update any such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240306835639/en/

Media

Amanda Song

press@bloomenergy.com

Investors

Ed Vallejo

investor@bloomenergy.com

Source: Bloom Energy

FAQ

What is Bloom Energy Inc. partnering with Shell Plc. for?

Bloom Energy Inc. is partnering with Shell Plc. to study decarbonization solutions using Bloom's proprietary hydrogen electrolyzer technology.

What is the goal of the collaboration between Bloom and Shell?

The goal of the collaboration is to develop replicable, large-scale solid oxide electrolyzer (SOEC) systems to produce hydrogen for potential use at Shell assets.

How does Bloom's SOEC technology contribute to decarbonization?

Bloom's SOEC technology produces clean hydrogen at scale, replacing existing fossil fuel-powered 'grey' hydrogen supplies and reducing carbon footprint.

Where is Bloom's Electrolyzer® manufactured?

Bloom's Electrolyzer® is manufactured in California and Delaware.

What was the capacity of the solid oxide electrolyzer demonstrated by Bloom at NASA Ames?

The solid oxide electrolyzer demonstrated by Bloom at NASA Ames had a capacity of 4 Megawatts.