Conagra and Bloom Energy partner on clean power in Ohio

CHICAGO - Conagra Brands, Inc. (NYSE: CAG) has teamed up with Bloom Energy (NYSE: BE) to introduce Bloom’s fuel cell technology at its Ohio-based Troy and Archbold production facilities. The long-term power purchase agreement, spanning 15 years, aims to provide the plants with approximately six megawatts of electricity, fulfilling 70% to 75% of their power requirements. This move is projected to reduce greenhouse gas emissions by 19%, contributing to Conagra’s science-based climate targets for 2030. Bloom Energy, with a market capitalization of $4.5 billion, has shown strong momentum with a 92% price return over the past six months, according to InvestingPro data.

The installation of Bloom’s fuel cells, which generate electricity without combustion, will deliver continuous, sustainable energy to the facilities. This technology is known for its "always-on" power capability and for avoiding the release of pollutants typically associated with conventional power generation. InvestingPro analysis reveals Bloom Energy’s revenue grew by 10.5% in the last twelve months, with analysts expecting 18% growth in the coming fiscal year. The company maintains a "FAIR" Financial Health score, suggesting stable operational performance.

Adam Colling, C&I Sector Leader at Bloom Energy, expressed enthusiasm for the partnership, highlighting Bloom’s commitment to clean energy solutions. Christine Daugherty, vice president of sustainability at Conagra Brands, anticipates that the fuel cells will enhance operational efficiency and play a crucial role in meeting the company’s environmental objectives.

In support of its sustainability ambitions, Conagra has also established a $9 million Sustainability Capital Allowance program. This initiative funds technology investments across Conagra’s production sites to advance sustainable practices and minimize environmental impact.

The collaboration with Bloom Energy is part of Conagra’s broader Citizenship strategy, which focuses on Good Food, Responsible Sourcing, Better Planet, and Stronger Communities. More details on the company’s sustainability efforts can be found on Conagra’s corporate social responsibility webpage.

Conagra Brands, a major player in the North American branded food industry, boasts a diverse portfolio that includes Birds Eye®, Duncan Hines®, and Slim Jim®. With a history spanning over a century, the company continues to evolve to meet changing consumer preferences.

Bloom Energy provides distributed power generation solutions to businesses and communities, offering a path toward lower carbon electricity today and a net-zero energy future.

The information presented is based on a press release statement.

In other recent news, Bloom Energy Corp. has been the focus of several analyst reports following its fourth-quarter results and future outlook. UBS analyst Manav Gupta reaffirmed a Buy rating with a $33.00 price target, highlighting Bloom Energy’s strong performance as it exceeded its 2024 revenue guidance with annual sales of $1.47 billion. RBC Capital Markets maintained an Outperform rating and a $28.00 price target, noting the company’s 30% year-over-year increase in backlog, which indicates strong demand despite operational expenditure cost increases. Meanwhile, TD Cowen raised its price target to $20.00, maintaining a Hold rating and emphasizing a more optimistic view of Bloom Energy’s future financial performance, particularly in the data center market.

Conversely, BMO Capital Markets adjusted its price target from $25.00 to $23.00, citing concerns about the company’s backlog growth and operating margins, while maintaining a Market Perform rating. KeyBanc Capital Markets sustained a Sector Weight rating, recognizing Bloom Energy’s solid alignment with its guidance and projecting nearly 20% revenue growth for 2025. Despite the positive revenue and margin results, KeyBanc chose to maintain a neutral stance on the stock’s investment potential. Bloom Energy’s guidance for 2025 suggests a robust sales increase, with expectations of significant growth in free cash flow, which is anticipated to enhance liquidity for operational expansion. The company’s ability to secure significant orders, such as 100 megawatts from American Electric Power, underscores the ongoing demand for its energy solutions.

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