Bloom Energy performed strongly in recent months, rising from USD 10 to over USD 19 until it was time for profit-taking. As expected, the stock is beginning to catch up to other fuel cell shares. Plus, Bloom [NYSE: BE] has formed a joint venture with Samsung Heavy Industries to come up with SOFC solutions for cargo vessels and tankers. The venture is regarded as a research partnership aimed at developing technologies Bloom wants to bring to market starting in 2022, with yearly production capacities of 300 megawatts.

Bloom is also profiting from the ambitious goals of South Korea‘s biggest oil and gas corporation, the SK Group. Expectations are that South Korea’s hydrogen production plant capacity will rise to 15,000 megawatts by 2040 and that 6.2 million FCEVs will be driving in the country by then. The group owns 3,400 gas stations and intends to add hydrogen pumps to 1,200 of them by 2040. Its management thinks highly of Bloom. Following a three-year partnership, the SK Group’s chief executive said the fuel cell firm has the best electrolyzer money can buy right now. The shared goal is to connect 400 megawatts of fuel cell output to the grid each year.

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Bloom said its electrolyzer technology will allow hydrogen production at a cost equal to that of gasoline by 2021. Wow! In a few years, this could lead to orders worth USD 500 million to USD 1 billion annually.

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read more in H2-international October 2020

Risk warning
Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small- and mid-cap businesses, which means their stocks may experience high volatility. The information in this article is based on publicly available sources, and the views and opinions expressed herein are those of the author only. They are not to be taken as a suggestion of what stocks to buy or sell and come without any explicit or implicit guarantee or warranty. The author focuses on mid-term and long-term prospects, not short-term gains, and may own shares in the company or the companies being analyzed.

Author: Sven Jösting