Editor’s note: This article has been edited to clarify that NASA does not have any active contracts with Bloom Energy for its space fuel cell program and that Bloom’s current fuel cell products are designed for different applications.
Bloom Energy (BE 8.55%) stock took off like a rocket Monday morning, soaring 10% through 10:35 a.m. ET. And here’s the weird thing:
There doesn’t seem to be any news behind the move.
Image source: Getty Images.
What’s new at Bloom? Nothing much, except…
No earnings reports (that was last month). No analyst upgrades — on Wall Street, there’s not even a change in Bloom’s price target to explain today’s move. What there is, though, is a news story out of NASA about how the space agency hopes to make hydrogen fuel cell technology a key element of the upcoming Artemis moon base.
As NASA.gov reports, researchers at the NASA Glenn Research Center’s Fuel Cell Testing Laboratory in Cleveland are testing fuel systems to “revolutionize the way NASA stores energy during future Moon missions.” Through chemical processes, a fuel cell system can transform hydrogen and oxygen into water for drinking and into electricity and heat to support a moon base. It can also run the same transformation in reverse to create oxygen to breathe.
Bloom’s fuel cells are designed for different applications, and it’s unclear whether the technology is suitable for the environment required in space.
Still, fuel cell tech heading to space is a cool story. And Bloom Energy investors may be betting that the company’s experience building fuel cells at scale could eventually matter here — even if the tech isn’t a fit today.
Today’s Change
(-8.55%) $-25.94
Current Price
$277.47
Key Data Points
Market Cap
$86B
Day’s Range
$275.42 – $288.50
52wk Range
$17.01 – $310.00
Volume
305K
Avg Vol
10M
Gross Margin
31.08%
Going where no fuel cell company has gone before
Dr. Kerrigan Cain, NASA’s lead engineer in Cleveland, calls fuel cells “an ideal technology for habitats, exploration with rovers.” But here’s the thing:
While NASA is tinkering with the tech, ensuring it can work on the moon, it might need manufacturers like Bloom, who are experienced in building fuel cells in quantity, to deliver the scale of production necessary to sustain astronauts on the moon.
Although NASA hasn’t indicated any companies it’ll partner with, if it considers Bloom, it could be a major growth opportunity in the future.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.