A subsidiary of Duke Energy recently announced it will acquire a portfolio of distributed fuel cell technology projects from Bloom Energy Corporation, as part of the company’s efforts to serve commercial and industrial customers’ evolving energy needs and provide behind-the-meter generation.
The company will purchase approximately 37 MW of Bloom Energy Servers and has already secured long-term power purchase agreements with creditworthy customers primarily located in California, Connecticut, Maryland, and New York.
Duke Energy One, a non-regulated subsidiary of Duke Energy, formed a potential long-term strategic alliance with Bloom Energy, marking another step forward in expanding energy products and services available for commercial and industrial customers.
Bloom Energy Servers are unique in the utility sector, producing energy by converting natural gas or biogas into electricity without combustion. Based on solid oxide fuel cell technology, the energy servers generate cleaner power around the clock and reduce greenhouse gas emissions by comparable amounts to zero-emission wind and solar power on an annual basis.
Bloom Energy Servers also do not generate combustion-related pollutants, such as sulphur oxides, nitrogen oxides, or particulate matter.
Customers benefit from low-emission, baseload power 24/7 and fewer intermittent interruptions in power flow for their facilities and operations.
“Commercial and industrial customers want resilient, clean energy at predictable costs and solutions tailored for their business needs — and with this technology, we can provide just that,” said Swati Daji, Duke Energy’s senior vice president of customer solutions and strategies. “We are excited to give our customers a more affordable, reliable, innovative generation source with Bloom Energy’s innovative fuel cells, and we look forward to further developing and customizing more options in the future.”
“Duke Energy’s investment is a significant validation of the Bloom Energy Server value proposition,” said Randy Furr, chief financial officer at Bloom Energy. “Now, more than ever, commercial and industrial customers need power that is reliable, resilient, and affordable. As one of the largest electric power holding companies in the United States, Duke Energy understands that dynamic perfectly, and we are delighted to be partnering with the organization.”
Over the next 18 months, the two companies will deploy the servers at more than 30 sites across a portfolio of customers, including hospitals, technology companies, data centers and universities. This deployment continues Duke Energy’s efforts to invest in cleaner generation, reduce carbon emissions, and build a smarter energy future for its customers.
Morgan Stanley & Co. LLC was Bloom Energy’s exclusive financial advisor for this transaction.