Bloom Energy, RE Royalties, FuelCell Energy: New Billions for the Energy Future

Bloom Energy: Billion-Dollar Deal Fuels Further Hype

Bloom Energy is one of the top shots of recent months. Since May of last year, its performance has exceeded 1,500%. The US energy company has now closed a new deal within its existing partnership with asset manager Brookfield Asset Management.

The partnership aims to provide decentralized power supply solutions for data centers in the field of artificial intelligence. The financial framework for these energy projects has been raised from an original USD 5 billion to now USD 25 billion. However, this agreement is not a direct firm order with a fixed revenue volume for Bloom Energy. Here, Brookfield provides the capital for the infrastructure projects, while Bloom Energy is responsible for the delivery, installation, and subsequent maintenance of the fuel cell systems.

This event is also reflected in analysts' latest assessments. After the announcement of the deal expansion, US banking giant Wells Fargo maintained its rating on Bloom Energy's stock at "Equal Weight" and set a price target of USD 217. The experts highlight the additional revenue potential from the increase in the framework. Around USD 6 billion in additional product revenue could thus be generated. Specifically, USD 1 to 2 billion is expected to be contributed annually over the next three to five years. Since the start of the collaboration in late summer 2025, revenues of over USD 1.2 billion have already been generated.

On the stock market, the news triggered a significant price reaction. The stock posted a gain of over 10%, as investors bet on the continued strong demand for energy solutions in the AI sector. Nevertheless, caution is warranted, as the current valuation already reflects considerable future order intake, so further upside potential may be limited for now.

RE Royalties: A Discrepancy in Valuation

The transformation of the energy industry toward alternative sources is rapidly gaining momentum. In the United States, in 2025 around 90% of newly installed power capacity came from solar, wind, and storage projects. This development is driven by rising electricity demand from AI data centers, electrification, and the expansion of a resilient energy supply. This also increases the need for innovative financing models.

RE Royalties has transferred the royalty model known from mining to the energy industry. Instead of building facilities itself, it provides capital to project developers and in return receives long-term, revenue-based royalty payments. This model is complemented by secured short-term loans whose repayments can be invested directly into new projects. The result is predictable cash flows over terms of up to 25 years combined with high scalability, since RE Royalties does not have to operate any facilities of its own.

The strategy meets a growing market. Many small and mid-sized project developers struggle to access traditional financing despite economically attractive ventures. RE Royalties fills this gap and benefits from a structurally rising demand for capital. Since its founding, the company has invested more than CAD 80 million across 29 transactions and built a portfolio of 135 projects. The average return on its investments is just under 20%, while the current deal pipeline exceeds CAD 50 million. A significant portion already comes from existing clients.

Given a market capitalization of only around CAD 16.7 million, this valuation is set against a potential project pipeline of up to CAD 200 million. Should RE Royalties continue to successfully execute its growth strategy or unlock additional value as part of the strategic process, the stock's potential may be far from exhausted. After a strong rise of more than 100% since mid-December to CAD 0.45, the share is consolidating at a high level at around CAD 0.36.

FuelCell Energy: Fresh Capital Prompts a Re-Rating

The US fuel cell specialist FuelCell Energy has reached an important milestone in securing its international export business. The state-owned Export-Import Bank of the United States (EXIM) has approved a total financing volume of USD 49 million for the company. The capital is being provided in a structured manner in two parts.

The first tranche was released at the end of June 2026 and, after deducting contractual fees and reserves, secured the company a net inflow of about USD 22 million. The disbursement of the remaining funds is planned for October. With these financial resources, the delivery of five fuel cell power plant blocks to Gyeonggi Green Energy in South Korea will be financed. That site is among the world's largest installations in the field of decentralized energy supply.

From the company's perspective, this loan offers a key advantage. It is non-dilutive capital, which means the shares of existing shareholders remain protected. According to management, this increases financial flexibility to expand manufacturing capacity at the Torrington production site and serve new market segments in the global energy and data infrastructure sector.

Several analyst firms used the recent business developments to adjust their ratings and price targets. Research firm Jefferies upgraded the stock from "Hold" to "Buy" and revised its price target from USD 16 to USD 24. The move is justified by the fact that FuelCell Energy is now working through a tangible order backlog. The adjustment was even more pronounced at B. Riley. Here, the rating rose from "Neutral" to "Buy", while the price target was raised from USD 13 to USD 32. Canaccord also joined this trend and now recommends the shares as a "Buy" with a target of USD 30. The experts' focus is above all on the group's project pipeline of around 5 gigawatts, of which almost 90% is attributable to the AI-driven data center sector.

Bloom Energy benefits from the rapidly rising electricity demand of the AI economy and, through the expanded multi-billion-dollar framework agreement, could further strengthen its strong market position in decentralized energy supply. RE Royalties impresses with a scalable royalty model, an attractive project pipeline, and a valuation that is low relative to its portfolio. FuelCell Energy gains additional room for growth through fresh, non-dilutive capital and, with its strong AI project pipeline and the recent analyst upgrades, could be facing a re-rating.