There is a lot in the ESG section of today's daily report and we will elaborate more in our ESG and Climate report next week (to be found here). The Bloom Energy results were strong and the modular nature of what Bloom is offering, in our view, should only increase the level of interest going forward. SMR and ATR base blue hydrogen projects are very large, requiring billions of dollars of capital and taking years to construct. The projects are further complicated by the likely need to build dedicated CCS with each unit. The methane fuel cells that Bloom offers are modular and can be much smaller and more incremental from an investment perspective. For blue hydrogen, they will still need CCS, but they offer a lower capital-based route to hydrogen and power today. We can see an opportunity to deploy these units, or something similar, everywhere there is CCS, as either an incremental source of hydrogen and power or a large source. Bloom still has work to do on lowering costs, but much less work than green hydrogen appears to have today, in our view.
Source: Bloom Energy, 2022