American Electric Power signs fuel cell deal worth $2.65 billion

The American Electric Power Company announced on Thursday that its unit would buy a significant portion of the option it has for solid oxide fuel cells. This deal is worth approximately $2.65 billion and will be part of their plans to build a fuel-cell power generation facility.

AEP signed an agreement with Bloom Energy in 2024 to acquire 100 Megawatts of'solid oxide fuel cell technology, with the option to buy an additional 900 MWs. AEP disclosed in a filing that the utility's unit had exercised this?option during the week. In early trading, shares of Bloom Energy rose 14% to $123,04, their highest level since November.

AEP has also signed a deal for a 20-year period with?an unknown customer to provide the entire output of the fuel cell?generation plant that will be situated near Cheyenne in Wyoming.

The utility stated that the offtake agreement is subject to certain conditions, which should be met by the second quarter of 2026. AEP will receive financial compensation if the conditions are not met. (Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo)

(source: Reuters)