Bloom Energy, Altech Advanced Materials, FuelCell Energy – Extreme jumps

Bloom Energy in a celebratory mood

Bloom Energy shareholders received a pre-Christmas surprise as early as mid-November. The stock surged nearly 60% to USD 21.14 in response to the announcement that the leading provider of stationary fuel cells for power generation has signed a supply contract with American Electric Power (AEP). The contract includes up to 1 gigawatt of Bloom Energy products and represents the largest commercial procurement of fuel cells in the world to date.

AEP has already ordered 100 megawatts of Bloom Energy's solid oxide fuel cells (SOFC). The agreement expands the previous collaboration between the two companies and aims to expand the use of Bloom's SOFC technology in commercial and industrial settings.

This technology offers a high power density of 100 MW per acre and is characterized by rapid deployment and high availability. The fuel cells will initially be installed in AI data centers to meet their urgent power needs. KR Sridhar, founder, chairman and CEO of Bloom Energy, emphasizes the suitability of the Bloom platform for the requirements of modern data centers. With over 1.3 GW of installed capacity and a production capacity capable of delivering gigawatts annually, Bloom Energy is well-positioned to meet demand.

The fuel cells will also deliver electricity with 34% lower CO2 emissions than the current marginal power plants in the PJM grid. When operated with natural gas, SOx and NOx emissions are almost completely eliminated. Bloom's fuel cells can also run on 100% hydrogen or a mixture of hydrogen and natural gas, enabling future reductions in the carbon footprint.

Altech Advanced Materials – Capital measure completed

Altech Advanced Materials received around EUR 800,000 from a private placement, which is less than expected. Originally, 1,460,500 shares were to be issued at a price of EUR 2.40. As management announced at the beginning of October, the total equity requirements for the upcoming projects in Schwarze Pumpe are around EUR 1.9 million. Broken down again, Altech Advanced Materials' share of the CERENERGY® project is EUR 1.0 million, while around EUR 0.9 million is estimated for the Silumina Anodes project.

In a report dated October 28, the associated company disclosed that a lack of sufficient funds would result in a dilution of the stakes in the aforementioned companies. However, the targeted financial close for the CERENERGY® project is still subject to considerable uncertainty.

In a landmark partnership with the Fraunhofer Institute for Ceramic Technologies and Systems, Altech Advanced Materials is developing an innovative battery that could fundamentally change the landscape of stationary grid storage. The CERENERGY® technology, developed for use in large-scale facilities such as wind and solar parks, offers significant advantages over traditional batteries.

CERENERGY® batteries are fire and explosion-safe and designed to last more than 15 years. They can also be used in extreme climates, in both very cold and very hot regions. An outstanding feature of this battery technology is the use of low-cost and environmentally friendly materials such as common salt and small amounts of nickel while avoiding the use of lithium, cobalt, graphite and copper. According to the Fraunhofer Institute, the production costs of CERENERGY® batteries could be about 40% lower than those of comparable lithium-ion batteries.

Altech Advanced Materials recently made significant progress: The Company announced that its operating company, Altech Batteries GmbH, has signed a letter of intent with Zweckverband Industriepark Schwarze Pumpe (ZISP). According to this agreement, ZISP will purchase 30 MWh of energy storage capacity annually for at least five years from 2027, spread across 30 units of 1 MWh GridPacks each.

FuelCell Energy – Extreme volatility at week's end

When looking at the stock price at the close of trading, things were business as usual for fuel cell specialist FuelCell Energy, as they have been in recent weeks. The Company from Danbury, Connecticut, ended the day down more than 12% at USD 6.16. What happened intraday, however, was almost unbelievable. After FuelCell Energy announced a cost-cutting program before the start of Nasdaq trading, the stock intermittently rose by over 35% to USD 9.45 on extremely high volume before short sellers - the Company is one of the most short-sold stocks with a short interest of around 24% - took over again and pushed the price down significantly.

FuelCell Energy announced in pre-market trading that it would cut 13% of its workforce in the US, Canada and Germany as part of a global restructuring of its operations. Overall, operating costs are to be reduced by almost 15% in fiscal year 2025, which management says will protect its competitive position in the face of slower-than-expected investment in clean energy. The downsizing of the workforce began in September, with the latest layoffs reducing the total by 17%.

The Company expects the restructuring plan to be substantially completed by the end of the first fiscal quarter of 2025, which runs from November to January, at a cost of approximately USD 1.7 million to USD 2 million for severance payments. The plan is not expected to impact carbonate production capacity at the plant in Torrington, Connecticut.

On December 19, further details of the restructuring plan are to be announced, along with the fourth-quarter figures.

Bloom Energy's share price skyrocketed after the Company signed a supply contract with American Electric Power. FuelCell Energy's shares experienced a similar surge, although this was sold off again during trading. Altech Advanced Materials reported the result of its capital measure.