Bloom Energy surges as AEP signs $2.65 billion deal for fuel cells

Shares of power solutions company Bloom Energy BE.N rise 16% to $125.34 in early trading, hitting their highest since November

American Electric Power's AEP.O unit signs deal worth about $2.65 billion with BE to advance its fuel cell power generation plans

In 2024, AEP had signed an agreement with Bloom to acquire 100 megawatts (MW) of solid oxide fuel cells with an option to purchase an additional 900 MWs

The offtake deal is subject to certain conditions which are expected to be satisfied by Q2 2026

Analysts at Evercore view this as a meaningful positive for Bloom as it sheds light on demand for its product and provides investors insight into the fact that the AEP contract will result in volumes well above the minimum commitment

In 2025, BE rose about 24.3%