Exelon Corporation will provide equity financing for 21 megawatts (MW) of Bloom Energy solid oxide fuel cell (SOFC) 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 subsidiary Constellation, a leading competitive retail supplier of energy products and services serving more than two-thirds of the FORTUNE 100. The business unit develops, owns and operates distributed generation for retail customers, including onsite solar, 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.
Bloom Energy Servers use solid oxide fuel cell technology to produce electricity from natural gas with 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.
Exelon Corporation is the US’ leading competitive energy provider, with 2013 revenues of approximately $24.9 billion. Headquartered in Chicago, Exelon does business in 48 states, the District of Columbia and Canada. Exelon is one of the largest competitive US power generators, with more than 35,000 megawatts of owned capacity. The Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and approximately 1 million residential customers.