The agreement extends the initial term from 2024 to 2027 and involves a recommitment of about 250MW from the 2021 agreement with an additional 250MW under this agreement
Officials from both the firms at the agreement signing ceremony. (Credit: Business Wire)
SK ecoplant, a unit of South Korean conglomerate SK Group, has committed to buy an additional 500MW of Energy Servers from US-based Bloom Energy through 2027.
The deal extends the terms of the Preferred Distributor Agreement (PDA), which both companies signed in 2021.
Bloom Energy anticipates that the transaction will bring in about $1.5bn in product revenue and $3bn in service income over 20 years.
The agreement involves a recommitment of about 250MW from the 2021 agreement with an additional 250MW under this agreement. It also extends the initial term from 2024 to 2027.
Bloom Energy CEO, founder, chairman KR Sridhar said: “The continuation of our partnership with SK ecoplant is a strong testament to our companies’ shared commitment to expanding the global power and hydrogen market.
“High-demand industries need reliable, clean, and predictable power, and together with SK ecoplant, Bloom has proven that our solid oxide platform is a critical solution to meet growing power needs around the world while enabling the net-zero transition.
“The success of our work with SK ecoplant reinforces our commitment to actively lowering emissions worldwide.”
Bloom Energy and SK ecoplant have solidified their respective market positions in the production of electricity and the global hydrogen economy through their strategic cooperation, which started in 2018.
The American energy firm said that the South Korean firm will be the company of choice for its solid oxide fuel cells (SOFC) and solid oxide electrolysers (SOEC) worldwide distribution where SK ecoplant has a significant presence and competitive advantage.
Together, both firms have deployed 400MW since the start of their partnership.
SK ecoplant CEO Kyung-II Park said: “We are thrilled to expand our partnership with Bloom Energy, another signal of our enduring focus on an energy transition and facilitating a clean energy economy.
“In our five years of collaboration, SK ecoplant has maintained a consistent competitive advantage with the help of Bloom’s highly efficient fuel cells and electrolysers.
“This commitment and expansion represents our confidence that Bloom will continue to drive innovation for a clean energy future.”
SK ecoplant is further solidifying its collaboration with Bloom Energy with around $566m financial investment and a 10% ownership stake in the company.