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3w ago

AEP Unit Signs $2.65 Billion Purchase for 900 MW of Bloom Energy Fuel Cells

Bloom’s $2.2 billion convertible raise funds factory expansion, drawing investor scrutiny over valuation and execution.

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Overview

  • A regulatory filing shows an AEP unregulated subsidiary executed a purchase agreement for 900 MW of solid oxide fuel cells from Bloom, part of a previously disclosed 1 GW framework.
  • Reuters reported the new tranche at $2.65 billion, extending a 2024 deal that began with an initial 100 MW commitment.
  • Insider Monkey reported the AEP-backed project ties to a 20-year power purchase agreement for a planned fuel cell facility in Cheyenne, Wyoming.
  • Bloom shares jumped 12.8% to $121.84 on Thursday after the filing, extending gains tied to data center power demand.
  • Analysts highlight risks including potential dilution from the $2.2 billion converts and a rich 125x forward earnings multiple, with Mizuho reiterating a neutral rating and a $108 price target.