The hydrogen fuel cell industry is quite competitive. In this video clip from "The High Energy Show" on Motley Fool Live, recorded on April 5, Fool.com contributors Travis Hoium and Jason Hall outline how Bloom Energy (BE 10.99%), despite some risk, has a better chance of success than its rivals.
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Travis Hoium: Here is Bloom Energy's revenue and gross margin. Bloom Energy makes fundamentally a different product than Plug (PLUG 1.26%). They're both in the hydrogen fuel cell space. Bloom makes what's called a solid oxide fuel cell Plug makes a proton exchange membrane fuel cell, so in theory and I think this is starting to play out.
In reality, the solid oxide will be far more efficient. It runs hotter, but it's far more efficient. You can see over time their business is growing pretty rapidly. Their gross margins are improving the chart that I had earlier about the costs coming down over time 65% between, I think it was 2015 and 2020.
That was Bloom Energy's Chart. This is a company that's actually doing the thing. They've got a lot of moonshots on the horizon powering ships with hydrogen doing electrolysis could be a huge winner, could also be a zero. But if you're interested in the hydrogen space, that's where I think there's going to be better odds of success. I think generally, do you broadly agree with that Jason?
Jason Hall: I do. I think there's risk but there's actually a real risk-adjusted potential with that company.
