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Bloom Energy: Cheap Fuel Cell Stock

Mar. 07, 2021 9:22 AM ETBloom Energy Corporation (BE)9 Comments


  • Bloom Energy is the cheapest fuel cell company on the market.
  • It is transforming to green hydrogen with great flexibility in its products.
  • It could get profitable far ahead of other fuel cell companies.
  • The company has a prudent strategy focused on sustainable growth.

I recently wrote a piece about hydrogen investments and presented Boom Energy (NYSE:BE) as a top pick in the fuel cell sector. Bloom has several advantages over other fuel cell stocks. It has an established customer base and predictable revenues for 2021. Its valuation isn't off the charts and the stock price fell back by 40% since the all-time-high in February.

Fuel cell companies are very popular at the moment. This popularity is driven by the general buzz around renewable energy and exciting new companies such as Nikola (NKLA). Fuel cells are mostly used in hydrogen applications. Read more about the hydrogen industry in my introduction to hydrogen investments.

What Does Bloom Do?


Bloom provides primarily stationary power solutions based on fuel cells. The Bloom Energy Servers provide a flexible distributed power generation system. It can run on natural gas, biogas, or hydrogen fuel. On natural gas, it's cleaner than traditional power plants and generates power onsite. When running on biogas or green hydrogen, it emits zero CO2. Bloom also offers carbon capture for fuel cell systems running on natural gas. This makes the system more expensive and less competitive.

Bloom presented its hydrogen market entry strategy in 2020. Hydrogen is a part of Bloom's strategy from the beginning. The company waited for green hydrogen to become economically feasible to actually enter the market. It has a couple of interesting features on its hydrogen platform. The cell is reversible. It can be used to produce hydrogen from electricity and to convert the hydrogen back to electricity.

New Partnership Announcement Could Be A Catalyst

Bloom actively pursues other international partnerships. It expects to announce a partnership in Europe in 2021. I believe this could be a short-term catalyst for the share price. Especially, since the company made

Bloom Energy has

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This article was written by

In short: focus on free cash flow growth, GARP, value, thorough analysis, and a lot of common sense. I follow value investing principles and do my research through publicly accessible knowledge. I look for stocks trading below their actual value. Buying at the right time and holding shares for a long time leads to attractive profits. All expressions are my own. I do not represent a company. I cover stocks worldwide, mainly in North America and Europe. All my experience in stock picking comes from reading books and articles. Any investments you would take after a piece or discussions with me are your own responsibility. You should do your own due diligence before an investment.

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