Friday, 21 January 2011

Bloom Energy to offer 10 year electricity contracts

Silicon Valley fuel cell maker Bloom Energy is beginning to sell 10-year
electricity contracts in addition to straight out sales of its machines, the
start-up said on Thursday.

Credit Suisse will provide financing for the service by Bloom, one of the
best-known new companies focusing on alternative energy and clean
technology. Its machines use electrochemical chemical processes to turn
natural gas and biogas into energy.

Chief Financial Officer Bill Kurtz said by telephone that the new offering
would essentially double demand, since many customers preferred to avoid the
capital costs of buying machines and that Bloom's profit margins were equal
for both transactions.

He declined to comment on Bloom profitability.

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