Exelon Corp. will provide equity financing for 21 MW of Bloom Energy fuel cell projects at 75 commercial facilities in California, Connecticut, New Jersey and New York. The power buyers include new and repeat blue-chip customers, such as AT&T, which will use the fuel cells to power operations at nine sites.
As the first step in a long-term strategic partnership with Bloom Energy, Exelon will finance Bloom Energy projects through Bloom Electrons, a service that allows customers to buy power as a service, rather than purchasing the equipment directly. This is the first investment by an energy company in Bloom Electrons, and it will support the program’s largest commercial deployment to date.
Exelon’s partnership with Bloom Energy builds upon the distributed generation business of Exelon unit Constellation, a competitive retail supplier of energy products and services. The business unit develops, owns and operates distributed generation for retail customers, including onsite solar power, emergency generation and cogeneration. Constellation has been active in the distributed generation business since 2007 and will play a key role in the ongoing management of Exelon’s partnership with Bloom Energy.
Exelon and Bloom Energy plan to complete the installations in phases over the next year. When completed, the fuel cells will produce enough clean, reliable electricity to power the equivalent of more than 11,000 homes each year.
Bloom Energy Servers use solid oxide fuel cell technology to produce electricity from natural gas. They rely upon an efficient electrochemical process that results in far fewer carbon emissions than other traditional power generation methods.
Terms of the transaction were not disclosed. Credit Suisse was Exelon’s financial adviser, and Morgan Stanley advised Bloom on its partnership with Exelon.