Expansion of Successful SK Group Partnership
for Hydrogen Commercialization of Fuel Cells in South Korea
SK E&C Projects Future Annual Sales of 400
Megawatts in South Korea
Launches New Solid Oxide Electrolyzer Product
for Renewable Hydrogen Production Scheduled for Commercial
Deployment in 2021; Projects Cost Parity with Gasoline
Bloom Energy (NYSE: BE) announced today that it is entering the
commercial hydrogen market by introducing hydrogen-powered fuel
cells and electrolyzers that produce renewable hydrogen. These
products will be first introduced to the South Korean market in
2021 through an expanded partnership with SK Engineering and
Construction (SK E&C), an affiliate of SK Group. Bloom’s
technologies are critical in enabling South Korea to execute on its
government-mandated Hydrogen Economy Roadmap. Bloom’s existing
partnership with SK E&C has already sold 120 megawatts (MW) of
fuel cells in South Korea, generating over $1 billion in equipment
and future services revenue for Bloom.
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Electrolyzer technology in the future
hydrogen economy (Graphic: Business Wire)
“The Bloom Energy Servers are a proven market leader in clean,
reliable, and resilient on-site power,” said KR Sridhar, founder,
chairman, and CEO of Bloom Energy. “This expansion of our product
offering enables zero-carbon electricity and transportation
solutions. Innovation and execution are fundamental tenets of our
business and we are excited about the opportunity to advance the
hydrogen economy with our long-time partner, SK E&C.”
Delivering Hydrogen Fuel Cells to South Korea
Bloom Energy announced in June 2019 that its fuel cells could
run on hydrogen to generate zero-carbon electricity. By the end of
2020, Bloom expects to ship a 100 kilowatt pilot Server to South
Korea to power an SK E&C facility in early 2021. The second
phase, a 1 MW hydrogen Server installation, is targeted for a 2022
deployment. Both companies have committed to fully fund and
resource these two phases.
“Our three-year collaboration with Bloom Energy has reinforced
to us our view that Bloom’s fuel cell technology is the best in the
world,” said Jason Ahn, CEO of SK E&C. “Given the Korean
government’s ambitious directive of deploying 15,000 MW of fuel
cells by 2040, we forecast to sell 400 MW per year of fuel cells in
the future.”
The Proven Importance of Electrolyzers
Bloom Energy’s core technology is based on research done by its
founders on using electricity generated by a solar panel to produce
fuel and oxygen on planet Mars for NASA. Bloom Energy Servers
reversed this process by taking in fuel and air to generate
electricity. Bloom is capitalizing on this technology by taking
terrestrial renewable power and producing hydrogen using solid
oxide electrolyzers. The renewable hydrogen, when produced in this
manner, can fuel cars, power resilient AlwaysON Microgrids, or be
injected into natural gas pipelines to reduce carbon emissions.
“SK Group is the leading oil and gas provider in South Korea
with 3,400 gas stations,” said Ahn. “The South Korean government’s
roadmap requires the construction of 1,200 filling stations to fuel
6.2 million hydrogen cars by 2040. Bloom’s electrolyzers would
allow SK to play a vital role in helping to meet these
targets.”
Since 2002, Bloom has been awarded 19 patents for its solid
oxide electrolyzer technology. Over time, it has improved the
efficiency and aggressively reduced the cost of its products and
expects this trend to continue. This, combined with the rapidly
reducing cost of bulk solar and wind intermittent power, should
make the hydrogen generated with Bloom electrolyzers reach the U.S.
Department of Energy’s goal of gasoline price parity faster than
other technologies.
“Generating low-cost hydrogen from intermittent renewables is a
sine qua non for decarbonization,” said Jack Brouwer, professor of Mechanical and
Aerospace Engineering and director of the National Fuel Cell
Research Center (NFCRC) at the University of California,
Irvine. “Solid oxide electrolyzers hold the greatest
potential to generate low-cost green hydrogen because of their
superior efficiency, rapidly declining costs, and scalability.
Achieving zero emissions in many sectors will depend upon making
massive amounts of renewable hydrogen. Because Bloom is the market
leader in solid oxide technology, I am very encouraged by this
announcement.”
About Bloom Energy
Bloom Energy’s mission is to make clean, reliable energy
affordable for everyone in the world. The company’s product, the
Bloom Energy Server, delivers highly reliable and resilient,
always-on electric power that is clean, cost-effective, and ideal
for microgrid applications. Bloom’s customers include many Fortune
100 companies and leaders in manufacturing, data centers,
healthcare, retail, higher education, utilities, and other
industries. For more information, visit www.bloomenergy.com
Forward-Looking Statements under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the federal securities laws that involve risks and
uncertainties. Words such as “anticipates,” “could,” “expects,”
“intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,”
“can,” “may,” “will,” “would” and similar expressions identify such
forward-looking statements. These statements include, but are not
limited to statements regarding the Company’s ability to
commercialize its products for hydrogen, the development of an
ecosystem for hydrogen, the anticipated results of the
collaboration and demand for the Company’s product in South Korea
and the marketplace opportunities in 2020 and beyond; policy
changes in the South Korean market and the effectiveness of the
products in reducing cost. These statements should not be taken as
guarantees of results and should not be considered an indication of
future activity or future performance. Actual events or results may
differ materially from those described in this press release due to
a number of risks and uncertainties, including those included in
the Risk Factor section of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2019, most recent Quarterly Report
on Form 10-Q and other risks detailed in Bloom’s SEC filings from
time to time. Bloom undertakes no obligation to revise or publicly
update any forward-looking statements unless if and as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200715005286/en/
Investor Relations: Mark Mesler Bloom Energy +1 (408)
543-1743 Mark.Mesler@bloomenergy.com
Media Contact: Erica Osian Bloom Energy +1 (401) 714-6883
Erica.Osian@bloomenergy.com
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