Shares of Bloom Energy climbed sharply after the renewable electric power provider announced a $4.5 billion supply agreement with SK Group.
The subsidiary of the South Korean Group, SK Ecoplant, agreed to purchase at least 500 megawatts of power from Bloom Energy (ticker: BE) through 2024. That represents a $4.5 billion revenue commitment from SK, according to a press release. SK Group also plans an equity investment of about $500 million.
Bloom Energy and SK Ecoplant also agreed to create hydrogen innovation centers in the United States and South Korea.
Bloom Energy jumped more than 35% to $27.31 on Monday. The stock has fallen 4.57% year to date.
The partnership between the two companies began about three years ago.
Clean energy company Bloom Energy provides power by converting natural gas and hydrogen into electricity. Bloom Energy’s servers are used by companies such as Home Depot and Stop & Shop.
Bloom Energy posted fiscal 2020 revenue of $794.2 million.
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