Bloom Energy And SK ecoplant Announce 500 MW Sales Agreement Strengthening Existing Partnership; The Transaction Is Expected To Generate ~$1.5B In Product Revenue And $3B Of Service Revenue Over 20 Years For Bloom Energy
Portfolio Pulse from Benzinga Newsdesk
Bloom Energy (NYSE:BE) and SK ecoplant have extended their Preferred Distributor Agreement, with SK ecoplant committing to purchase 500 MW of Energy Servers from Bloom Energy through 2027. The deal is expected to generate around $1.5 billion in product revenue and $3 billion in service revenue over 20 years for Bloom Energy. The partnership, which began in 2018, has already seen the deployment of 400 MW and aims to strengthen market leadership in power generation and the global hydrogen economy. SK ecoplant has also invested approximately $566 million in Bloom Energy, owning about 10% of the company's shares.
December 22, 2023 | 2:02 pm
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POSITIVE IMPACT
Bloom Energy's extended agreement with SK ecoplant for 500 MW of Energy Servers is expected to bring in $1.5B in product revenue and $3B in service revenue over 20 years, solidifying its market position and financial outlook.
The extended agreement with SK ecoplant is a significant development for Bloom Energy, as it not only ensures a steady stream of revenue but also reinforces the company's strategic partnership and market position. The substantial expected revenue from this deal is likely to be viewed positively by investors, potentially leading to a short-term increase in stock price. The confidence in this analysis is high due to the clear financial benefits and reaffirmed commitment from a major partner, though market conditions and broader economic factors could affect the stock's performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100