Governments around the world are enacting clean energy initiatives. To capitalize on this, investors should take a close look at Bloom Energy (NYSE:BE) stock. Currently, Wall Street doesn’t seem to appreciate the full value that Bloom Energy offers. Hence, there’s a potential buy-and-hold opportunity here.
Just to recap, California-based Bloom Energy builds, sells and installs solid oxide platforms that generate electricity and hydrogen. Bloom Energy designed its solid oxide platform to generate electricity and hydrogen, and can help businesses produce clean, hydrogen-based fuel.
Bloom Energy’s customers run the gamut from healthcare providers to the ship-building industry. Now, BE stock could be the hidden gem in your long-term, growth-focused portfolio.
Inflation Reduction Act Should Benefit BE Stock
Before considering an investment in Bloom Energy, you’ll definitely want to read the company’s sustainability report. In it, Bloom Energy outlines its plans to assist businesses and governments with their net-zero ambitions.
Importantly, Bloom Energy emphasizes the significance of the Inflation Reduction Act (IRA). Applicants may be eligible, according to Bloom Energy, “for a tax credit of up to $3/kg of hydrogen.”
The U.S. could become “one of the cheapest regions in the world for clean hydrogen production,” as a result.
Without a doubt, incentives like this can help the U.S. to “better align with its Paris commitments,” and to provide “meaningful policy support to Bloom’s commercial strategy.”
At the very least, public policy can benefit Bloom Energy as the company commercializes the Bloom Electrolyzer, which “enables various types of hydrogen production,” as well as the company’s solid-oxide fuel cells which “can utilize hydrogen as a fuel feedstock.”
Bloom Energy Moves Boldly Into Europe
Even if the company benefits from the IRA, it’s worth noting that Bloom Energy’s vision goes beyond the U.S. Indeed, a recent press release suggests that Bloom Energy is making strides in the European green energy market.
In particular, Bloom Energy is teaming up with energy service company Elugie to serve the clean fuel markets in Belgium, the Netherlands and Luxembourg.
Together, the two companies will “provide a total of 9.75 megawatts (MW) of power from the Bloom Energy Server . . . at five commercial, industrial and data center sites in Belgium.”
Bloom Energy and Elugie are also eyeing Latvia, Lithuania and Estonia as potential target markets. Not only that, but Elugie is “in discussions with” Bloom Energy about possibly deploying the Bloom Electrolyzer.
So, get ready for Bloom Energy to deliver its solid-oxide fuel cell platforms in Europe later this year and in early 2024.
What You Can Do Now
Bloom Energy is well-positioned to benefit from the IRA in the U.S. Also, the company is making strides with a crucial team-up in the European market.
Wall Street seems oblivious to these developments and BE stock hasn’t had its breakout moment yet. That moment might happen soon, so feel free to consider a confident share position in Bloom Energy.
— Louis Navellier and the Investor Place Research Staff
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Source: Investor Place