Bloom Energy is upbeat about a new generation of fuel cells that pack more electric generating power in less space.
The company, which operates production site in Newark and retains its headquarters in California’s Silicon Valley, is taking a low-key approach in rolling out the new generation of fuel cells.
So far, it has been inviting members of the local media to briefings on the generation of servers rather than making a major announcement. (See previous story).
Recently, Delaware Business Daily was invited to talk with a company official and to receive a briefing on its new technology. Photos of the new servers are not being released at present.
Asim Hussain, Bloom marketing and customer experience vice president, noted in a telephone interview that previous models had their limitations, due to a configuration that is about the size of a vehicle parking space.
The multiple fuel cells, usually fueled by natural gas, operate continuously, providing a part of the power for the commercial complex and allowing backup power should an outside outage occur
The new generation of fuel cells is more versatile, with the ability to be transported to rooftops via a freight elevator. The fuel cells can also be used in tight quarters.
That opens up Bloom fuel cells to large urban markets like New York City and Japan, areas where electricity costs are high and Bloom fuel cells can provide dependable electric power.
An agreement with the Constellation unit of utility and nuclear generation giant Exelon will lead to the installation of 40 megawatts in Bloom servers on the East Coast and California.
That adds up to a near doubling of the total installations in the nation and comes on the heels of a previous Constellation deal that was about half the size of the most recent agreement.
Constellation will have an ownership stake in the servers, which will be installed at various locations for companies like discounter Walmart as well as the first Bloom “microgrid” installation in Hartford, CT. The microgrid will generate power in a small area of the city and provide emergency generation in the event of an overall electrical outage.
Asim says the company’s marketing strategy centers on building on its current user base that includes household names like Walmart, AT&T, and eBay.
Bloom hopes to build on those existing relationships while making a case for other retailers, data enters and others powering their stores with Bloom boxes.
Information from Bloom indicates servers have been installed in 5 0 Walmart stores, with the recent Constellation deal setting the stage for a wider footprint.
Bloom has also gained notice in the data center market. Server farms require reliable power supplies at all times, but also require large amounts of electricity that power and cool the heat generated by the servers.
Another large user is Apple, which uses Bloom servers at its North Carolina data center, said to be the home for its Siri and its iCloud data storage system. Details are few, given Apple’s nondisclosure requirements that often mirror those of Silicon Valley neighbor Bloom.
In a related development, Bloom recently entered into an agreement with an Austin, Texas-based start-up company that sees Bloom servers as part of a revolutionary change in data centers.
The company has designed server technology that can drop pre-packaged server units that deal with the heat generated by the data storage systems. Such units could be dropped into smaller footprints in urban and suburban areas.
Asim said the current market that has seen natural gas prices fall as supplies increase has less than ideal for Bloom.
On the plus side, the low natural gas prices allow Bloom fuel server users to lock in low long-term prices for natural gas, Asim noted.
Bloom has used the example of an installation at a data center operated by online auction giant eBay in making its case for the use of its technology.
The Bloom site in Delaware employs about 200 at last report, well below original estimates that came with a state aid package and a deal that uses electricity from the Bloom servers.
The electricity is fed into the grid, with Delmarva Power customers paying the added cost that can run about $50 a year, based on calculations from the utility,
The numbers get murky when tied into the state’s alternative energy mandates and their costs. Those costs have led to calls to repeal mandates that are seen as holding back manufacturing.
Bloom officials refrain from discussing the cost issue, but note possibility that existing fuel cell installations can be retrofitted with the more efficient technology. That could cut the added monthly costs.
