It seems the hydrogen industry is starting to win over incumbent energy players. Bloom Energy and Baker Hughes announced today a partnership to develop integrated technologies for power solutions.
The two companies will start work on pilot projects in the next couple of years, looking to partner in three major areas: integrated power solutions, integrated hydrogen solutions and broader technical collaborations across their portfolios.
Scalable and commercial applications are expected after this initial period and among the technologies earmarked for collaboration are Bloom’s solid oxid fuel and electrolyzer cells and Baker’s light-weight gas turbine and compression tech.
Baker Hughes Warming up to Hydrogen?
Last year Baker Hughes announced the world’s first hydrogen blend turbine for gas networks with Snam. This collaboration will also look to blend hydrogen into natural gas pipelines, but will also explore standalone hydrogen production.
“We believe that in combining our industry-leading technologies and expertise to provide differentiated and customized integrated solutions to customers, we can accelerate the adoption of clean energy technologies,” said Azeez Mohammed, executive vice president of international business for Bloom Energy.
Uwem Ukpong, executive vice president at Baker Hughes commented on the fresh parntership by saying that “..it’s a great example of how Baker Hughes is strategically pursuing ways to advance new energy frontiers and invest for growth in the industrial marketplace.”
Bloom Energy Stock Impact
The announcement came after the trading bell on a tough day for the Bloom Energy stock, as it dropped 6.57%, while Baker Hughes gained 4.78% after a rise in Q1 revenue.
The move can be seen as a win-win for two companies representative of their respective industries. Baker Hughes is an established player in the oil and natural gas industry, while Bloom Energy is at the forefront of hydrogen fuel cell development.
This has propelled the stock over 220% in the last 12 months and the recent slump could be considered a correction, according to our Bloom Energy Stock Analysis for 2021