Fuel Cells -Bloom Energy and SK ecoplant Announce 500 MW Sales Agreement Strengthening Existing Partnership
Fuel Cells -Bloom Energy and SK ecoplant Announce 500 MW Sales Agreement Strengthening Existing Partnership.
Bloom Energy (NYSE: BE) and SK ecoplant, an engineering and energy solutions provider and subsidiary of South Korean conglomerate SK Group, today announced they have extended the terms of the Preferred Distributor Agreement (“PDA”) the companies signed in 2021. SK ecoplant has committed to purchase 500 megawatts (MW) of Energy Servers from Bloom Energy through 2027. The transaction is expected to generate approximately $1.5 billion in product revenue and $3 billion of service revenue over 20 years for Bloom Energy. The agreement extends the initial term from 2024 to 2027 and includes a recommitment of approximately 250 MW from the 2021 agreement with an additional 250 MW under this agreement.
Launched in 2018, the strategic partnership between Bloom Energy and SK ecoplant has strengthened their respective market leadership positions in power generation and the global hydrogen economy. SK ecoplant will be a preferred distributor globally for Bloom Energy solid oxide fuel cells (SOFC) and solid oxide electrolyzers (SOEC) in markets where SK ecoplant has a significant presence and competitive advantage. Bloom Energy and SK ecoplant have deployed 400 MW since the beginning of the partnership.
KR Sridhar, founder, chairman, and CEO, Bloom Energy, said:
The continuation of our partnership with SK ecoplant is a strong testament to our companies’ shared commitment to expanding the global power and hydrogen market.
“High-demand industries need reliable, clean, and predictable power, and together with SK ecoplant, Bloom has proven that our solid oxide platform is a critical solution to meet growing power needs around the world while enabling the net-zero transition. The success of our work with SK ecoplant reinforces our commitment to actively lowering emissions worldwide.”
Kyung-II Park, CEO, SK ecoplant, said:
We are thrilled to expand our partnership with Bloom Energy, another signal of our enduring focus on an energy transition and facilitating a clean energy economy.
“In our five years of collaboration, SK ecoplant has maintained a consistent competitive advantage with the help of Bloom’s highly efficient fuel cells and electrolyzers. This commitment and expansion represents our confidence that Bloom will continue to drive innovation for a clean energy future.”
SK ecoplant continues to strengthen its partnership with Bloom energy, by having made a roughly $566 million equity investment in the company and owning about 10% of the company’s shares.
Bloom Energy’s solid oxide platform delivers reliable, resilient, 24/7 onsite power with world-leading efficiency. The company’s Energy Server enables businesses and communities to take charge of their energy and eliminate down times, while continuing to meet advanced sustainability targets.