RBC views Shell partnership as positive signal Bloom ‘is gaining traction’

Commenting on Bloom Energy’s (BE) collaboration with Shell (SHEL) to develop SOEC opportunities, RBC Capital says it views the announcement as a positive signal that Bloom is gaining traction on larger end markets and applications for hydrogen. The firm estimates Bloom Energy’s electrolyzer is 20%-30% more efficient than current PEM and Alkaline technologies when running at high temperatures and high availability, and because electricity accounts for 70%-80% of an electrolyzer’s total cost, efficiency is key. Overall, RBC believes this presents an opportunity to offset or augment gray hydrogen produced by steam methane reforming. The firm has an Outperform rating on Bloom with a price target of $14.