SAN JOSE, CA - Bloom Energy Inc. (NYSE:BE), a significant player in the clean energy sector, has been granted a tax credit of up to $75 million to enhance its fuel cell manufacturing capabilities and operational efficiency at its Fremont, California facility.
The tax credit, awarded by the Department of Energy, Department of Treasury, and the Internal Revenue Service, is part of the Qualifying Advanced Energy Project 48C initiative.
The funding contributes to the $4 billion in tax credits announced by the White House, aimed at fostering domestic clean energy manufacturing and reducing greenhouse gas emissions. Bloom Energy's Fremont plant, which began operations in 2022, spans 164,000 square feet and is instrumental in the production of high-efficiency fuel cell stacks. These stacks are a core component of Bloom's Energy Server platform and Bloom Electrolyzer.
KR Sridhar, Founder, Chairman, and CEO of Bloom Energy, stated, "The $75 million of funding from the Federal government is a vote of confidence in Bloom's commitment to domestic manufacturing, in our solid oxide technology, and in our mission to facilitate the energy industry's decarbonization." The investment aims to boost the plant's stack capacity and improve its operational efficiency.
The Fremont site has increased Bloom's manufacturing space to over 524,000 square feet and has been a source of hundreds of clean energy jobs. Its annual output is capable of producing over 1 gigawatt of energy, comparable to adding a nuclear power plant each year.
Satish Chitoori, Bloom's Chief Operating Officer, commented on the significance of the tax credit, which covers up to 30% of the expenditures for expanding the Fremont facility's capacity. He emphasized the company's dedication to scaling up domestic manufacturing.
Bloom Energy's technology is based on proprietary solid oxide fuel cells that operate with high efficiency and without combustion. This allows for flexible deployment and operational customization, catering to cost, resilience, and sustainability needs.
With over a gigawatt of installed capacity, Bloom manages a billion real-time performance data points daily, leveraging data analytics to optimize the performance of its Energy Servers.
This investment is based on a press release statement and reflects Bloom Energy's ongoing efforts to contribute to the clean energy industry and the broader goal of reducing greenhouse gas emissions through advanced technology and increased manufacturing capacity.
InvestingPro Insights
Bloom Energy Inc. (NYSE:BE) has shown resilience with a market capitalization of $2.64 billion, reflecting investor confidence in the clean energy sector despite its current lack of profitability.
According to the latest data from InvestingPro, the company's revenue has grown by 11.2% over the last twelve months as of Q4 2023, indicating a positive trajectory in sales. However, it is important to note that the company's revenue saw a quarterly decline of -22.84% in Q4 2023, which may signal a need for cautious optimism regarding short-term growth.
InvestingPro Tips suggest that while Bloom Energy is not profitable over the last twelve months, analysts predict the company will become profitable this year. This aligns with the company's strategic investments in expanding its manufacturing capabilities and may be a harbinger of future financial success. Additionally, the company's liquid assets exceed its short-term obligations, which provides it with a buffer to navigate through its cash burn issues.
For those interested in a deeper dive into the company's financials and future outlook, InvestingPro offers additional tips that could help investors make more informed decisions. Currently, there are 11 additional InvestingPro Tips available for Bloom Energy, which can be accessed at https://www.investing.com/pro/BE. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive analysis and valuable insights into companies like Bloom Energy.
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