Bloom Energy Corporation (NYSE:BE) shares are trading higher Tuesday after the company announced it signed a memorandum of understanding with California Resources Corporation (NYSE:CRC) and its carbon management business, Carbon TerraVault, to jointly evaluate and target the potential development of 1 gigawatt or more of solid-oxide fuel cell power generation paired with carbon capture and storage in California.
- Bloom stock is charging ahead with explosive momentum. What’s fueling BE momentum?
Bloom, CRC and Carbon TerraVault Target 1 GW or More of Carbon-Captured Fuel Cell Power
Under the memorandum of understanding, announced Nov. 2, the companies will pair Bloom’s solid-oxide fuel cells and third-party carbon capture technology with Carbon TerraVault’s CO2 transportation and permanent storage capabilities and California Resources’ project management expertise. They plan to evaluate and advance 1 GW or more of front-of-the-meter and behind-the-meter projects, representing up to 3 million metric tons per year of CO2 potentially available for capture and storage, including contemplated projects in Central and Northern California.
Front-of-the-meter projects would target connection to Carbon TerraVault’s California storage portfolio and utility offtake, while behind-the-meter projects would serve industries seeking on-site, clean and reliable power across California Resources’ Central Valley footprint. The companies also plan to develop commercial pathways with potential power customers, including utilities, community choice aggregators, municipalities and data centers.
“Our non-combustion technology makes carbon capture more efficient and economically viable at scale,” said Aman Joshi, Bloom’s chief commercial officer. Bloom said its high-concentration CO2 exhaust stream can make carbon capture more efficient and cost-effective.
Non-Binding Agreement Subject to Permits and Final Investment Decision
Memorandums of understanding are non-binding. The projects described are subject to conditions that typically include negotiating definitive documents, a final investment decision by the parties and receiving EPA Class VI permits and other regulatory approvals. The announcement does not include a financial value or a timeline for the projects.
Bloom Shares Advance
BE Price Action: At the time of publication, Bloom shares are trading 8.89% higher at $213.69, according to data from Benzinga Pro.
Image via Shutterstock
