Due to the 4th quarter sales surge, Bloom Energy’s profitability target is projected as a year earlier. The annual deliveries of fuel cell increase to 132.6 Megawatts. Together with the effort of reducing cost, K.R. Sridhar, CEO of Bloom Energy, sees that 2021 will be the best year yet for the company.
Although the progress is consistent, Sridhar is expecting to fully adapt the company’s solid-oxide fuel cell technology. This technology aims to generate electricity from hydrogen. The plan was to obtain ‘green’ hydrogen through electrolysis and capture carbon in ‘blue hydrogen’ coming from natural gas. With this, the estimates will appear off the charts as the impacts are on a very large scale.
Bloom Energy introduces its first hydrogen-powered fuel cells last 2019 and has recently expanded on making electrolyzers, which reverses the aforementioned technology’s process. Together with SK Engineering and Construction as partners, Bloom plans to produce 1.8-Megawatt hydrogen-powered fuel cells starting in late 2021.
As the full adaptation of the technology is forecasted to be a multi-trillion-dollar opportunity, the company is just warming up. Bloom has touched the electric vehicle market with the joint agreement with Samsung Heavy Industries. Another field of interest of the company is on the manufacturing plants together with the promise of extracting carbon from the emissions of the natural-gas-powered fuel cells.
Bloom Energy has only been around lately but has attained the ‘unicorn’ status with over a billion dollars worth of investment. After the 2018 IPO, the share price has tumbled due to some problematic financial statements but the move towards the hydrogen-powered fuel cell technology save them from potential problems.
Bloom Energy’s signature product is still the natural-gas-powered energy savers. The units, having a capacity of 100 kilowatts, have helped a lot of establishments from data centers to factories and even to hospitals. Their ‘Bloom Electrons’ has met with many challenges over the years and recently, it was put aside for good.
Bloom is actively competing in the market, wherein they can yield customers in an area where the electricity is priced at least 9 cents per kilowatt-hour. In order to pursue the company’s goal on the next-generation fuel cell technology, they take a lot of effort to cut costs in many areas.
The drastic steps, together with tax extensions and the COVID-19 relief bill, help Bloom Energy see profitability as early as this month for the year 2021. The expected revenue for 2021 is around 950 million to 1 billion dollars.