Bloom Energy Corporation · NYSE:BE
Bloom Energy — Investor Day (November 2020)
19 slides from Bloom Energy's investor day presentation, Nov 18, 2020
Slide 1: Hydrogen Day Teach-In
I N V E S T O R D AY HYDROGEN DAY TEACH-IN NO V E M B E R 1 8 T H, 2 0 2 0 1
Slide 2: Safe Harbor / Forward-Looking Statements
SAFE HARBOR / FORWARD-LOOKING STATEMENTS T his presentation contains "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “predict,” “intend,” “could,” “would
Slide 3: Today's Participants
TODAY’S PARTICIPANTS Greg Cameron Sharelynn Moore Chief Marketing Officer EVP, Chief Financial Officer Joined 2020 Joined 2020 Venkat Venkataraman, Ph.D. Scott Reynolds EVP Engineering, Chief Technology Officer VP, Head of Structured Finance Joined 2003 Joined 2004 3
Slide 4: Today's Key Takeaways
TODAY’S KEY TAKEAWAYS Bloom Energy’s solid oxide platform is uniquely differentiated in the fast-growing hydrogen market, with four key advantages: 1 Higher efficiency, requiring 13-31% less electricity to produce a kg of hydrogen Efficiency Scale & by 2030 experience 2 Scale and experience, since o
Slide 5: Scale and Experience: Our Platform Was Built for Hydrogen
SCALE AND EXPERIENCE: OUR PLATFORM WAS BUILT FOR HYDROGEN Solid oxide was first First units made designed to enable a hydrogen 15 hydrogen economy years ago on Mars 19 hydrogen patents “SOFC System with Non-noble Metal Electrode Compositions’ Long term strategy “Solid Oxide Regenerative Fuel Cell” h
Slide 6: Solid Oxide: A Reversible Cell at the Core of Our Platform
SOLID OXIDE: A REVERSIBLE CELL AT THE CORE OF OUR PLATFORM Fuel Cell Mode Fuel Cell Mode Air O2 + 4e- 2O2- Cathode 2- O e- Electricity Hydrogen Electricity Electrolyte Anode Hydrogen Hydrogen 2H2 + 2O2- 2H2O + 4e- Electrolyzer Mode Air 2O2- O2 + 4e- Electrolyzer Bloom Energy’s provenMode “Soli
Slide 7: Fundamental Physics Means Solid Oxide Requires Fewer kWhs per kg of H2
FUNDAMENTAL PHYSICS MEANS SOLID OXIDE REQUIRES FEWER KWHS PER KG OF H2 2.5 H2 Production Power Generation Potential for 13% to 31% efficiency advantage 2.0 over competing technologies without and with heat integration Potential[V] 1.5 Cell Potential ALK PEM 20C Power Diff = 14.7 kW ALK PEM 80C 1.0 P
Slide 8: Fast Cost Down: History of Continued Improvement
FAST COST DOWN: HISTORY OF CONTINUED IMPROVEMENT Learning Rate at Pace of Solar Product Cost of Acceptance (1) $7,500 Bloom’s historical learning rate of 28% compares favorably to learning rates experienced in the solar and wind industries $5,886 $100,000 $6,000 Product Cost Acceptances ($ / kW) $4,
Slide 9: Bill of Materials Change: NG SOFC to SOEC
BILL OF MATERIALS CHANGE: NG SOFC SOEC 80 kW 50 kW NG SOFC NG NG SOFC Cost = $2420 / kW Subsystem (NG SOFC) Fuel Processor Fuel Flow Controller Fuel Pre-Reformer Anode Recycle Tail Gas Oxidizer Fuel Cell Stacks Mechanical / BoP DC-DC Convertors DC-AC Convertors / Rectifier 9
Slide 10: Bill of Materials Change: NG SOFC to SOEC
BILL OF MATERIALS CHANGE: NG SOFC SOEC 80 kW 50 kW 120 kW ~3 kgs/hr1 NG SOFC NG SOEC H2 NG SOFC Cost = $2420 / kW SOEC Cost = $908 / kW Subsystem (NG SOFC) X Fuel Processor Fuel Flow Controller Fuel Pre-Reformer Anode Recycle Tail Gas Oxidizer Fuel Cell Stacks Mechanical / BoP DC-DC Convertors DC-
Slide 11: Scale and Experience: Bloom's Unmatched Scale in SOFC Translates Directly to SOEC
SCALE AND EXPERIENCE: BLOOM’S UNMATCHED SCALE IN SOFC TRANSLATES DIRECTLY TO SOEC Bloom is larger than the 6 Building scale and Which is directly translatable to largest competitors combined experience in the process hydrogen generation LTM Revenue, $M 758 30%+ CAGR Over the last decade Same core pl
Slide 12: A Hydrogen Platform with Unique Flexibility
A HYDROGEN PLATFORM WITH UNIQUE FLEXIBILITY Multiple paths to supply hydrogen Multiple sources of hydrogen demand Hydrogen to Power Green H2 Already from renewable electricity announced (& solar thermal) Shipping Electrolysis Pink H2 Nuclear (with heat H DG hydrogen integration) microgrids Long haul
Slide 13: A Diverse Portfolio of Priority Opportunities Results in ~$50B of TAM by 2025
A DIVERSE PORTFOLIO OF 6 PRIORITY OPPORTUNITIES RESULTS IN ~$50B OF TAM BY 2025 Estimated annual TAM, 2025 (GW of How we will win… electrolyzer) Efficiency/waste heat allow us to achieve lower cost than Flexibility creates significant SOEC efficiency at higher power prices yield better competition e
Slide 14: Pulling It All Together to Model Hydrogen Prices
PULLING IT ALL TOGETHER TO MODEL HYDROGEN PRICES Assume same across tech Bloom advantage Levelized cost of hydrogen drivers Bloom advantages Capacity factor Installation cost 2x faster learning curve than other Capital cost Equipment cost electrolyzer technologies means lower capex costs at scale We
Slide 15: The Combination of Advantages Enables Much Stronger Economic Value Prop
THE COMBINATION OF ADVANTAGES ENABLES MUCH STRONGER ECONOMIC VALUE PROP Estimated production price of hydrogen1, $/kg Green H2 Pink H2 Blue H2 Gold H2 3.2 – 1.9 2.9 - 1.8 1.8 2.1 - 1.2 2.2 - 1.3 1.5 1.3 1.0 2025 2030 2025 2030 2025 2030 2025 2030 BE advantage over next-best 9% 17% 16% 24% N/A 20% 15
Slide 16: Commercialization Timing
COMMERCIALIZATION TIMING 2005 2020 2021 2022 2023-4 2025 First Enter market First Projects Commercial Ramp 1GW demonstration deployment $ Commercialization plan 16
Slide 17: Today's Takeaways
TODAY’S TAKEAWAYS Unique Platform Superior Cost and Ready for Growth Performance Four advantages… Efficienc Scale & y Efficiencyexperienc Scale & eExperience 9-24% better 1GW LCOH potential than capacity 1 1 2 other technologies 2 potential by 2025 3 43 4 Faster Flexibilit Cost Downs y Flexibility <
Slide 18: Proprietary and Confidential
Proprietary and Confidential
Slide 19: The Combination of Advantages Enables Much Stronger Economic Value Prop (With Notes)
THE COMBINATION OF ADVANTAGES ENABLES MUCH STRONGER ECONOMIC VALUE PROP (WITH NOTES) Estimated production price of hydrogen1, $/kg Green H22 Pink H23 Blue H24 Gold H25 3.2 – 1.9 2.9 - 1.8 1.8 2.1 - 1.2 2.2 - 1.3 1.5 1.3 1.0 2025 2030 2025 2030 2025 2030 2025 2030 BE advantage over next-best 9%6 17%7