Bloom Energy Corp's stock surged 15.63% 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.
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. If these conditions are not satisfied, AEP will be financially compensated for all capital and costs incurred.
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