Why Bloom Energy (BE) Stock Has Surged 23% in Pre-Open

Bloom Energy (NYSE: BE) stock is trading over 23% higher in pre-open Monday after the company announced a $4.5 billion partnership with SK Group’s affiliate SK ecoplant.

A new partnership represents an expanded version of the existing agreement in power generation. A new deal includes a minimum of 500 megawatts (MW) from Bloom Energy which is likely to yield $4.5 billion in revenue.

“Bloom Energy is SK ecoplant’s largest strategic partner in clean energy. We have seen the unparalleled performance of Bloom Energy’s product over the past three years and the company’s ability to execute and deliver a superior solution. We have also had firsthand experience with Bloom’s new hydrogen fuel cells and highly efficient electrolyzers, and we are excited about the competitive advantage we will have,” said Kyung-II Park, CEO, SK ecoplant.

Moreover, two companies agreed to create two hydrogen innovation centers. SK ecoplant will also invest $255 million to acquire 10 million shares of Bloom Energy at a price of $25.50 per share.

“From the start of our relationship with SK ecoplant, we have recognized that working together will accelerate our growth and enable SK to become a leader in clean energy and infrastructure solutions,” said KR Sridhar, founder, chairman, and CEO, Bloom Energy.

Two companies have an ongoing partnership for three years now. They have transacted nearly 200 MW of projects together so far, worth $1.8 billion of equipment and service revenue.

Bloom Energy stock closed at $20.19 and is indicated to open at $25.01 today. Bloom Energy stock is down 26% YTD, prior to today’s pre-open move higher.

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