In a major development, Bloom Energy (NYSE: BE) and SK ecoplant, a subsidiary of SK Group, have prolonged their Preferred Distributor Agreement (PDA) signed in 2021. SK ecoplant commits to buying 500 megawatts (MW) of Energy Servers from Bloom Energy by 2027, amounting to a significant financial commitment.
Financial Implications and Revenue Generation
The extended agreement is anticipated to yield approximately $1.5 billion in product revenue and an impressive $3 billion in service revenue for Bloom Energy over two decades. The partnership aims to provide reliable and clean power solutions to high-demand industries worldwide.
Strategic Partnership for Global Leadership
Initiated in 2018, the strategic collaboration between Bloom Energy and SK ecoplant has bolstered their market leadership in power generation and the global hydrogen economy. SK ecoplant will serve as the preferred distributor for Bloom Energy’s solid oxide fuel cells (SOFC) and solid oxide electrolyzers (SOEC) in markets where they have a competitive edge.
Positive Outlook and Ongoing Collaboration
Both companies express their commitment to advancing the global power and hydrogen market. Bloom Energy’s solid oxide platform, delivering resilient, 24/7 onsite power, has already witnessed success with 400 MW deployed since the partnership’s inception.
Bloom Energy’s CEO, KR Sridhar, and SK ecoplant’s CEO, Kyung-II Park, emphasize the enduring focus on energy transition and clean energy economy. The collaboration, reinforced by SK ecoplant’s equity investment of approximately $566 million, reflects confidence in Bloom Energy’s innovative contributions to a sustainable energy future.
About Bloom Energy
Bloom Energy is at the forefront of distributed electricity and hydrogen generation, empowering businesses globally to embrace lower carbon energy solutions.
About SK ecoplant
SK ecoplant, the environment and energy arm of SK Group, spearheads the group’s ESG initiatives. With a focus on waste recycling, renewable energy, and sustainable growth, SK ecoplant aims to address global environmental challenges.
Source: businesswire.com
