What happened
Shares of fuel cell company Bloom Energy (BE) have jumped 50.3% so far this week as of noon EDT on Friday, and the stock's momentum doesn't seem to be slowing down. The company signed a huge supply deal this week, and next week is earnings, so this is certainly a renewable stock to keep an eye on.
So what
The biggest news this week came on Monday when Bloom Energy and SK Ecoplant, which is an affiliate of South Korean company SK Group, announced a minimum 500 megawatt (MW) order. The deal will generate at least $4.5 billion in revenue and includes an agreement to build two hydrogen innovation centers. In addition, SK Ecoplant will buy about $500 million in Bloom Energy stock.
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SK Group has been one of the leaders in deploying clean energy technology, and the fact that it's committing to deploying 500 MW of fuel cells after installing 200 MW over the past three years is a big vote of confidence.
Now what
The hydrogen economy is early in its growth cycle, so getting big deployments like this with SK Group is a big deal for a company like Bloom Energy. This will give the company the revenue visibility to add capacity and potentially push it toward profitability. Investors will learn more about this deal and the company's outlook on Nov. 4, when Bloom Energy reports earnings.
