November 14, 2012

Bloom Energy Golden Years Ahead?

Bloom Energy golden years ahead?

Bloom Energy during Hurricane Sandy, Delmarva Power

Bloom Energy fuel cells convert natural gas to electricity.

Based on Bloom Energy’s financials, for years, Bloom Energy was said to be powered by cash. But now, several factors are coming together, which can be very positive for Bloom Energy perhaps leading to Bloom Energy’s golden years?

Abundant Supply and Low Prices for Natural Gas
Natural gas, the base fuel required by Bloom Energy fuel cells will be available easily and inexpensively.

Shale Gas followed by Gas Hydrates will keep natural gas supplies plentiful for decades. US is already benefiting with lower prices for natural gas and with better distribution infrastructure, the low gas prices may extend worldwide.

Need for Distributed Electricity Generation
Hurricane Sandy demonstrated the need for local electricity generation. Local electricity generation helps in hurricanes or otherwise. And Bloom Energy servers are ideal for local electricity generation.

Of course, the supply of the base fuel has to be uninterrupted for this to work.

And, if Bloom reduces the size of its “energy servers” and makes it economical to deploy at individual homes, the demand for Bloom Energy servers will explode.

Bloom Energy’s golden years may be coming soon.

Alternatives to Bloom include ClearEdge Power.

Tags: bloom energy golden years, natural gas to electricity, distributed electricity generation, local electricity generation, fuel cells electricity, bloom energy financials