Summary
Bloom Energy Corporation (BE) announced an amendment to its sale agreement with 2018 ESA Project Company, LLC, a subsidiary of Duke Energy Corporation, on June 30, 2020. This amendment allows for the purchase of an additional 22.75 megawatts (MW) of Bloom Energy Servers. This expansion of the agreement signifies continued confidence from a major utility player and provides Bloom Energy with a significant new order. The deployment of these additional Energy Servers is expected to occur over the next six months, contingent upon Bloom Energy meeting certain liquidity milestones (which are stated to be met) and Wells Fargo's commitment to provide the necessary financing. This development is positive for Bloom Energy as it secures a substantial new revenue stream and demonstrates progress in its strategic partnerships.
Key Highlights
- 1Amendment to sale agreement with Duke Energy subsidiary (2018 ESA Project Company, LLC) for additional 22.75 MW of Energy Servers.
- 2Deployment of new Energy Servers expected over the next 6 months.
- 3Transaction is subject to the satisfaction of certain conditions, including Bloom's liquidity milestones and Wells Fargo financing.
- 4Bloom Energy confirms it currently meets the specified liquidity milestones.
- 5This agreement represents a material expansion of the existing relationship with a key strategic partner.