Bloom Energy Rises After Power Supply Agreement With Conagra, Fuels Retail Optimism
The company’s fuel cells would supply about 70% to 75% of the electricity needs at two Conagra facilities.
Bloom Energy (BE) stock extended gains in after-hours trading on Tuesday after the company signed an agreement to deploy fuel cells at Conagra’s production facilities in Ohio.
Conagra said that the 15-year power purchase agreement would see the deployment of about six megawatts at the branded food company’s Troy and Archbold facilities.
Latest Videos
Bloom Energy’s fuel cells would supply about 70% to 75% of the electricity needs at the two facilities, while Conagra expects a 19% decrease in greenhouse gas emissions at the plants.
"Our collaboration underscores Bloom's commitment to providing clean and reliable energy solutions and driving economic value in grid-constrained regions like Ohio and the greater Midwest," said Adam Colling, an executive at Bloom Energy.
A growing need for power in the U.S. from artificial intelligence data centers has already boosted demand for fuel cells. Morgan Stanley estimates a 42-gigawatt (GW) power shortfall in the U.S. for data centers being developed through 2028.
Last year, the company signed a 1 GW fuel cell supply contract with American Electric Power (AEP), a utility.
According to TheFly, RBC Capital Markets analysts said Tuesday’s agreement highlights power shortages and Bloom's market opportunity, which extends well beyond data centers.
The brokerage also believes that Bloom's serviceable addressable market continues to expand as energy grids become more constrained and utility prices continue to rise.
Retail sentiment on Stocktwits about Bloom jumped to the ‘extremely bullish’ (78/100) territory from ‘bearish’(38/100) a day ago, while retail chatter rose to ‘high.’
Retail users were cheering the deal.
One user hoped that the stock's upward move would continue on Wednesday but warned that any impact from President Donald Trump’s tariffs could result in a significant swing in share prices.
Bloom shares have fallen 5.6% year-to-date (YTD).
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.