Bloom Energy share price up sharply on news of deal with Korean company


Bloom Energy shares rose more than  39% during the past two days   on news that  SK ecoplant, an affiliate of South Korean conglomerate SK Group, will expand its partnership with the company that has its main manufacturing site in Newark

Since the start of their strategic partnership three years ago, Bloom Energy and SK ecoplant have participated in projects totaling  200 megawatts with more than $1.8 billion in equipment and expected service revenue.

Over the next three years, the companies will expand this existing business with contracts for at least an additional 500 MW of power between 2022 and 2025, representing approximately $4.5 billion in equipment and future service revenue.  

“Bloom Energy is SK ecoplant’s largest strategic partner in clean energy,” said Kyung-II Park, CEO, SK ecoplant. “We have seen the unparalleled performance of Bloom Energy’s product over the past three years and the company’s ability to execute and deliver a superior solution. We have also had firsthand experience with Bloom’s new hydrogen fuel cells and highly efficient electrolyzers, and we are excited about the competitive advantage we will have. Our work together has established a shared commitment to sustainability, innovation, and creating value. We are demonstrating our confidence and furthering our commitment to this partnership by making this financial investment.” 

“From the start of our relationship with SK ecoplant, we have recognized that working together will accelerate our growth and enable SK to become a leader in clean energy and infrastructure solutions,” said KR Sridhar, founder, and CEO, Bloom Energy. “I am thrilled that over the past three years the superior performance of our products, execution capability, and the scale of our operations have led to such a strong relationship with SK ecoplant. SK ecoplant’s confidence to invest in us is a clear validation of our products and our people. Together, we can accelerate the hydrogen economy on a global basis. This is a win, win, win, win for our company, partners, customers, and investors.”

Bloom Energy and SK ecoplant agreed to create Hydrogen Innovation Centers in the United States and South Korea. The intent is to significantly accelerate Bloom Energy’s hydrogen fuel cell and electrolyzer products’ global market expansion.

In addition, Bloom Energy and SK ecoplant agreed to strengthen their strategic alliance through expanding business cooperation in global markets, which may include exclusive distribution rights in select new markets. 

SK ecoplant will invest $255 million in Bloom Energy by acquiring 10 million shares of zero-coupon, non-voting redeemable convertible preferred stock for $25.50 per share. SK ecoplant has the option to purchase a minimum of an additional 11 million shares of Class A common stock at a 15 percent premium to the prevailing stock price at the time, which must be no later than November 30, 2023, and is subject to a maximum ownership figure of 15 percent.

Upon completion of SK ecoplant’s purchase of its second tranche, SK ecoplant will add a member to the Bloom Energy Board of Directors. SK will give an irrevocable proxy to vote its shares to Bloom Energy.

Bloom Energy intends to use the proceeds for market growth, rapid commercialization of hydrogen solutions, and for general corporate purposes.

The Bloom electrolyzers use the technology from its fuel cells that generate electricity.

South Korea is banking on hydrogen as a way to reduce greenhouse gases. 

Bloom also has an agreement with a South Korean shipbuilder aimed at developing fuel cells to provide clean power for large ships.


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