Bloom Energy And SK ecoplant Supercharge Sustainable Power With Extended Deal: Details

Bloom Energy Corp BE has extended the terms of the Preferred Distributor Agreement (PDA), signed in 2021 with SK ecoplant, an engineering and energy solutions provider and subsidiary of South Korean conglomerate SK Group.

The agreement extends the initial term from 2024 to 2027 and includes a recommitment of about 250 MW from the 2021 agreement, with an additional 250 MW under this agreement.

Under the extended terms, SK ecoplant has committed to purchase 500 megawatts (MW) of Energy Servers from Bloom Energy through 2027.

The transaction is expected to bring in about $1.5 billion in product revenue and $3 billion of service revenue over 20 years for Bloom Energy. 

Bloom Energy and SK ecoplant have deployed 400 MW since the beginning of the partnership.

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 major presence and competitive advantage. 

"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," said KR Sridhar, founder, chairman, and CEO, Bloom Energy.

SK ecoplant has made a $566 million equity investment in Bloom and owns about 10% of the company's shares.

Price Action: BE shares are trading higher by 0.61% at $14.85 on the last check Friday.