Bloom Energy Corp's stock surged 16.69% in pre-market trading following the announcement of a $2.65 billion deal with American Electric Power (AEP). The deal involves AEP exercising its option to purchase a substantial portion of solid oxide fuel cells from Bloom Energy, signaling strong demand for the company's products.
The agreement, part of AEP's plans to develop a fuel cell power generation facility, includes the acquisition of 100 megawatts of solid oxide fuel cells with an option for an additional 900 MWs. AEP also signed a 20-year deal with an unnamed customer to supply the entire output from the facility, which will be located near Cheyenne, Wyoming. The deal is subject to certain conditions expected to be met by the second quarter of 2026.
Analysts view this as a significant positive for Bloom Energy, as it provides clarity on future revenue streams and underscores the growing demand for clean energy solutions. The deal is expected to drive long-term growth for the company.
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