Bloom Energy (NYSE:BE) shares are ticking higher today after the energy solutions provider announced a sale of its Solid Oxide Electrolyzer (SOEC) technology to SK ecoplant, a subsidiary of South Korea’s SK Group.
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Bloom’s technology will be utilized to deploy hydrogen in a large-scale green hydrogen demonstration with Korea Southern Power Co. and local authorities. The demonstration is expected to utilize 1.8 MW of Bloom’s technology to develop hydrogen as a transport fuel on Jeju Island, South Korea.
So far, Bloom and SK have teamed up on multiple projects in South Korea. The country is a leading name in the development of clean hydrogen technologies. A successful demonstration could help SK to pursue various domestic and international projects by using Bloom’s SOEC.
Under its Carbon-Free Island 2030 project, Jeju Island aims to transition all vehicles and power generation to renewable sources by 2030. Since the commencement of their strategic partnership in 2018, Bloom and SK have deployed 400 MW.
Last month, Bloom reported a 36.9% year-over-year growth in its top line for the third quarter. Its energy servers continue to gain traction due to their quick deployability. For Fiscal Year 2023, the company expects revenue in the range of $1.4 billion to $1.5 billion.
Is Bloom Energy a Good Buy?
Amid rising optimism around renewable energy and the world’s push for lowering emissions, shares of the company have gained nearly 18% over the past month. Overall, the Street has a Moderate Buy consensus rating on Bloom Energy. The average BE price target of $18.46 points to a 21% potential upside in the stock.
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