Bloom Energy Corp

Business Summary

Company Overview

Our leading solid oxide platform for distributed power generation and hydrogen production is changing the future of energy.

The Future of Energy Starts Here

A Resilient, Energy Conversion Platform Designed for a Net-Zero Future

Our modular, scalable, and configurable solid oxide platform is capable of providing a variety of sustainable power solutions: from the generation of zero-carbon electricity to the production of clean hydrogen. We continue to evolve and expand our offerings as we pursue our mission to make clean, reliable energy affordable for all.

Microgrids

Bloom’s Microgrid and Advanced Bloom Microgrid offerings have grown to become an important solution to an increasingly unreliable centralized power grid. Our microgrids do not depend on transmission lines or the larger distribution system, eliminating the risk of being cut off from power due to natural disasters and have proven resilient during hurricanes, earthquakes, fires, and more. These microgrids can be installed alongside batteries and solar panels to increase flexibility and reliability. Globally, more than 170 Bloom microgrids maintain power supply for hospitals, supermarkets, data centers, high-tech manufacturers, university campuses, and more.

Waste to Energy

The solid oxide fuel cells in the Energy Server provide an electrochemical pathway to convert methane in natural gas or biogas directly into electricity without combustion. We have pioneered the cleanup of biogas as fuel on-site for our Energy Server operation, without the need for pipeline-quality biomethane. On-site biogas use avoids the release, combustion, or flaring of harmful methane. When the Energy Server uses treated biogas as a fuel, it has a similar emission profile as natural gas but a lower, and potentially even negative, lifecycle carbon intensity.

Carbon Capture Utilization & Storage (“CCUS”)

When operating on hydro-carbon fuel like natural gas, the non-combustion nature of Bloom’s Energy Server product generates a relatively pure stream of CO 2 devoid of nitrogen oxides, sulfur oxides, and other impurities that are difficult or expensive to separate. Pairing the Energy Server with existing exhaust processing technologies, we can isolate a highly purified stream of CO 2 that can be used or sequestered more economically than traditional forms of power generation. CCUS can partially or fully mitigate emissions from natural gas depending on the specific sequestration or utilization technologies and methods being used. When carbon capture is paired with biogas energy generation (bioenergy to carbon capture or “BECCS”) projects, complete or even negative carbon emissions can be achieved.

Combined Heat and Power

The Bloom Energy Server can be enhanced with mechanical exhaust adapters to allow for easy integration to combined heat and power (“CHP”) systems. The high temperature cathode exhaust from the Energy Server can be channeled, allowing the resulting exhaust heat to be

available for use. Once captured, this high temperature heat can be utilized in various applications to further increase the overall combined thermal and electrical efficiency of the system.

Be Flexible TM

Be Flexible offers customized solutions to address variable power generation needs (when grid connected) or dynamic loads (when grid independent). From supporting the grid operators in smoothing out power oscillations caused by renewable penetration, to taking on challenging load profiles when powering critical loads in a grid independent configuration, Be Flexible is a feature that shifts the classical paradigm by which fuel cells were considered baseload generators only and positions them as the best choice for demanding applications such as AI data centers or EV charging. Our Be Flexible solution is intentionally designed with the flexibility to adapt and meet the unique needs of our customers.

Hydrogen Fuel

As production of hydrogen becomes ubiquitous, Bloom’s Energy Server is hydrogen ready. The Energy Server can operate on a combination of blended hydrogen and natural gas or 100% hydrogen. Bloom’s Energy Server products present a highly-reliable, zero-carbon, or renewable power generation option for customers.

Electrolyzers

Using the same solid oxide platform as our Energy Server, the Bloom Electrolyzer is designed to produce scalable and cost-effective hydrogen solutions more efficiently than proton exchange membrane and alkaline solutions. Our modular design makes the Bloom Electrolyzer ideal for use with both nuclear and renewable power feedstocks and can be sited flexibly to efficiently serve a variety of industrial, transport, and power sector off takers. Because of high operating temperatures and innovation, the Bloom Electrolyzer requires less energy to break up water molecules, thus producing hydrogen more cost effectively.

Reliability

The modularity of the Bloom Energy Server allows for the design of highly reliable configurations suited to a specific site’s reliability and availability needs. Our base model has exceptional reliability through high levels of Mean Time between Failure (“MTBF”) and with concurrent maintenance has low Mean Time to Repair (“MTTR”). High MTBF and low MTTR results in very high availability of power to the customer’s load. Bloom’s base Energy Server for grid-parallel systems has a 99.9% availability which is at par with utility standards. Adding redundancy over our base Energy Server model results in higher availability to the order of 99.999% suited to meet the most critical load requirements on the market.

Products Designed with Reliability and Sustainability in Mind

No Combustion:

Unlike traditional power generation technologies Bloom does not require combustion, eliminating harmful criteria pollutants

Commercial Trends

There are many factors driving demand for our solid oxide technology across the energy landscape, including:

Financial Highlights

2023 Business Highlights

Demonstrated Bloom Electrolyzer capability: We held a successful demonstration of our Bloom Electrolyzer technology, producing 2.4 metric tonnes of hydrogen per day. Our 4 megawatt (“MW”) Bloom Electrolyzer is a high-temperature, high-efficiency unit, producing 20-25% more hydrogen per MW than commercially demonstrated lower temperature electrolyzers such as proton electrolyte membrane (“PEM”) or alkaline. Idaho National Lab testing has shown the Bloom Electrolyzer to be the most efficient technology available at the time of testing.

Strengthening our balance sheet: Our market reach continues to grow, with revenues for 2023 setting a new company record of $1.33 billion, up 11% from 2022. Our focus on cost reductions helped us improve our gross margins to 14.8%, up from 12.4% in 2022 (non-GAAP gross margins were 25.8%, up from 23% in 2022). Our product and service backlog, a key indicator of future growth, grew to $12 billion at the end of 2023, up from $10 billion in 2022. In May, we issued the 3% Green Convertible Senior Notes due June 2028 with an aggregate principal amount of $632.5 million. We also consolidated our production facilities in California at our Fremont, California multi-gigawatt factory.

Expanded our relationship with SK ecoplant: In December, we expanded our partnership with SK ecoplant through an incremental purchase commitment of 250MW through 2027 and we extended the timing of delivery of the remaining take-or-pay commitment under the original agreement and changed it to a minimum purchase agreement.

Successfully expanded into new international markets: In August, we commissioned a 10MW Energy Server in Taiwan and we also expanded our presence in Asia with a signed contract in Thailand. During 2023, our business development teams completed new market entry milestones in Germany, the United Kingdom, and Northern Europe.

Deployed first Fuel Cell CHP plant in Europe: Our versatile energy platform, with its Combined Heat and Power (“CHP”) solution, utilizes a high temperature (>350°C) exhaust stream for industrial steam production and absorption chilling. In partnership with Cefla, we deployed the first fuel cell co-generation plant in Europe to address gas reduction goals in the EU.

Indispensable technology in the data center and AI market: The data center market is facing significant growth and power challenges due to the increase of AI and EV loads. Due to our ability to deliver clean, reliable, and onsite power in months instead of years, this sector has become an important component of our pipeline. With the recent announcement of our Be Flexible offering, our products are well-positioned to serve this market with dynamic load following, power stability, and the modularity and fuel flexibility to advance the data center market into the hydrogen-fueled infrastructure of the future.