Bloom Energy Corporation

Company Overview

Business Model: Bloom Energy Corporation is a global leader in onsite power generation, designing, manufacturing, distributing, and operating a versatile fuel cell energy platform. Its primary product, the Bloom Energy Server, is a proprietary high-temperature solid-oxide fuel cell technology that converts fuels (natural gas, biogas, hydrogen) into electricity at high density without combustion, achieving lower emissions and higher efficiency than traditional systems. The Company also manufactures the Bloom Electrolyzer for producing hydrogen. Revenue is primarily derived from product sales of Energy Server systems, complemented by recurring revenue from long-term operations and maintenance agreements.

Market Position: Bloom Energy Corporation holds a leadership position in onsite power generation, serving Fortune 500 companies across critical sectors including data centers, semiconductor manufacturing, artificial intelligence (AI) infrastructure, and utilities. The Company's competitive advantages stem from its solid-state electrochemical conversion technology, offering rapid time to power, a favorable emissions profile across various fuels, high reliability (approximately 99.9% fleet availability for non-redundant installations, up to 99.999% with redundancy), modularity, and scalability. Its systems are compatible with demanding AI workloads due to fast electrical output adjustment and inverter-based architecture, and are "future-proofed" for energy transition by operating on multiple fuels and integrating with carbon capture.

Recent Strategic Developments:

• AI Infrastructure Focus: Bloom Energy Corporation is strategically prioritizing the rapidly expanding AI data center market, leveraging its technology's compatibility with high-density, variable AI workloads.
• American Electric Power Partnership: In November 2024, the Company entered a landmark supply agreement with American Electric Power, expected to procure up to 1 GW of Bloom Energy Server systems, with an initial order of 100 MW. This partnership positions American Electric Power as a channel and financing partner for deployments across its service territory.
• Brookfield Asset Management Partnership: In August 2025, Bloom Energy Corporation formed a strategic partnership with Brookfield Asset Management, establishing a prospective financing framework of up to $5.0 billion over five years. This framework is designed to accelerate the deployment of Bloom Energy fuel cell projects, particularly for AI infrastructure, through an AI Infrastructure Fund created by Brookfield Asset Management.
• Oracle Corporation Partnership: In October 2025, Bloom Energy Corporation partnered with Oracle Corporation to provide on-site solid-state power for AI data centers, including an agreement to issue Oracle Corporation a warrant to purchase up to 3,531,073 shares of Class A common stock.
• Manufacturing Capacity Expansion: The Company is expanding its Fremont, California manufacturing facility's annual production capacity from 1 GW to 2 GW by the end of 2026, with potential for further expansion up to 5 GW.
• U.S. Policy Support: The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, restored a 30% Investment Tax Credit (ITC) for fuel cell property under Section 48E for projects beginning construction after December 31, 2025, and reinstituted accelerated depreciation for applicable property.

Geographic Footprint: Bloom Energy Corporation operates globally, with its systems deployed across approximately 1,100 sites in 9 countries.

• Primary Operational Regions:
  • United States: Largest market by revenue and installed base, accounting for 81% of total revenue in 2025.
  • South Korea: Second-largest market, with nearly 682 MW of deployed systems, supported by distribution partnerships with SK ecoplant Co., Ltd. and SK eternix Co., Ltd.
  • Europe: Pursuing selective international expansion in markets including Germany, the United Kingdom, and Italy.
  • Asia Pacific Region: Includes operations in Japan, India, and Taiwan.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 29.0% (2025) vs. 27.5% (2024)
• Operating Margin: 3.6% (2025) vs. 1.6% (2024)
• Net Margin: (4.3)% (2025) vs. (1.8)% (2024)

Investment in Growth:

• R&D Expenditure: $185.99 million (9.2% of revenue)
• Capital Expenditures: $56.76 million
• Strategic Investments: $36.49 million invested in unconsolidated affiliates (Fund JVs with Brookfield Asset Management) in 2025.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: None in 2025. In 2024, $115.0 million of 2.5% Green Convertible Senior Notes due August 2025 were repurchased.
• Dividend Payments: $0.95 million in 2025. The Company does not intend to pay cash dividends for the foreseeable future.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: Not explicitly disclosed beyond the general intention to retain future earnings for business development.

Balance Sheet Position:

• Cash and Equivalents: $2,454.11 million
• Total Debt: $2,617.88 million (Recourse: $2,613.73 million; Non-recourse: $4.15 million)
• Net Cash Position: $(163.77) million (Net Debt)
• Credit Rating: Not disclosed.
• Debt Maturity Profile (as of December 31, 2025, in thousands):
  • 2026: $4,153
  • 2027: $0
  • 2028: $99,655
  • 2029: $75,125
  • 2030: $2,500,000
  • Thereafter: $0

Cash Flow Generation:

• Operating Cash Flow: $113.95 million
• Free Cash Flow: $57.19 million (Operating Cash Flow of $113.95 million - Capital Expenditures of $56.76 million)
• Cash Conversion Metrics: Not explicitly detailed in the provided text.

Operational Excellence

Production & Service Model: Bloom Energy Corporation's operational model is built on a proprietary solid-oxide platform architecture, which forms the foundation for both the Bloom Energy Server and Bloom Electrolyzer. This architecture utilizes repeatable fuel cell building blocks (cell printing, stack assemblies, column configurations) and a common product architecture, supply chain, and manufacturing process. The modular design allows for deployments ranging from hundreds of kilowatts to hundreds of megawatts. The Company operates two Remote Monitoring and Control Centers (RMCCs) in the U.S. and India, providing 24x7 coverage and remote adjustment capabilities for its global installed fleet. A dedicated Repair & Overhaul (R&O) facility in Delaware handles product refurbishment.

Supply Chain Architecture: The Company has developed a unique global supply chain with high-quality suppliers across North America, Asia, Europe, and India, specializing in compaction, sintering, brazing, and specialty material manufacturing techniques. It generally maintains multiple sources for raw materials and components, including rare earth elements, specialty alloys, and industrial commodities, except for specialized technology and material property requirements. Multi-year supply agreements are in place with some partners for continuity and pricing stability.

Key Suppliers & Partners:

• Manufacturing Partners: Joint venture with SK ecoplant Co., Ltd. for full assembly in South Korea.
• Technology Partners: Collaborations with companies like Chart Industries for Carbon Capture Utilization and Storage (CCUS) integration.

Facility Network:

• Manufacturing:
  • Fremont, California: 326,000 square feet (leased), expanding from 1 GW to 2 GW annual production capacity by end of 2026, with potential for up to 5 GW.
  • Newark, Delaware: 178,000 square feet (owned) and 454,000 square feet (leased) for manufacturing and warehousing, including the R&O facility.
  • Republic of Korea: Full-assembly facility through a joint venture with SK ecoplant Co., Ltd.
• Research & Development:
  • Fremont, California: 89,000 square feet (leased) R&D and manufacturing facility, plus a new 73,000 square feet research and technical center and global hydrogen development facility.
  • San Jose, California: Corporate headquarters (183,000 square feet, leased) also used for R&D.
• Distribution: Warehousing facilities in Newark, Delaware, and Fremont, California.

Operational Metrics:

• Fleet Availability: Approximately 99.9% for all non-redundant installations after 2020. With redundancy, availability can reach close to 99.999% for high continuity-of-service applications.
• Manufacturing Capacity: Expanding from 1 GW to 2 GW annual production capacity by the end of 2026 at the Fremont facility. Each additional 1 GW increase up to 5 GW is estimated to require 6-9 months and $100-$150 million in capital expenditure.

Market Access & Customer Relationships

Go-to-Market Strategy: Bloom Energy Corporation employs a hybrid go-to-market strategy combining direct sales with strategic partnerships and third-party financing. The direct sales force is segmented by vertical and account type, focusing on large-load and critical infrastructure customers. The Company is actively expanding relationships with utilities and developing robust project financing capabilities through long-term partnerships with capital providers.

Distribution Channels:

• Direct Sales: Primary channel for U.S. sales, targeting enterprise customers across data center, semiconductor, AI, utility, and industrial sectors.
• Channel Partners:
  • SK ecoplant Co., Ltd. and SK eternix Co., Ltd. in South Korea for marketing and sales of Bloom Energy products.
  • American Electric Power as a channel and financing partner in the U.S.
• Digital Platforms: Not explicitly mentioned as a sales channel, but secure telemetry connections enable remote monitoring and control of systems.

Customer Portfolio: Bloom Energy Corporation serves a diverse portfolio of Fortune 500 companies.

• Enterprise Customers: Hyperscalers, colocation operators, neocloud providers, developers, and infrastructure investors in the data center ecosystem; advanced manufacturing, healthcare, retail, education, and telecom in the Commercial & Industrial (C&I) sector.
• Strategic Partnerships: Key partnerships with American Electric Power and Brookfield Asset Management for large-scale deployments, particularly in AI infrastructure.
• Customer Concentration: In 2025, three customers (one of which is a related party) accounted for approximately 43%, 13%, and 12% of total revenue.

Geographic Revenue Distribution:

• United States: 81% of total revenue in 2025.
• South Korea: Second-largest market.
• Growth Markets: Pursuing selective international expansion in Europe (Germany, UK, Italy) and Asia (Japan, India, Taiwan).

Competitive Intelligence

Market Structure & Dynamics

The energy market is characterized by increasing demand for power, particularly from AI and cloud data centers and renewed domestic manufacturing investment. This surge in demand, coupled with grid constraints, extended permitting timelines, and supply chain limitations among traditional Original Equipment Manufacturers (OEMs), is driving a significant shift toward onsite power generation. Utilities are also facing load growth and affordability pressures, prompting exploration of flexible, capital-efficient solutions. Policy discussions increasingly link AI competitiveness with energy availability, recognizing natural gas as a bridge resource while long-term decarbonization pathways evolve.

Competitive Positioning Matrix

Direct Competitors

• Traditional Energy Suppliers: Centralized utility grids, traditional co-generation systems, nuclear, hydro, coal, geothermal power.
• Onsite Firm Power OEMs: Gas reciprocating engines, small gas turbines, combined cycle plants. Bloom Energy Corporation competes favorably due to higher efficiency, lower emissions, higher reliability, faster load adaptation, and quicker deployment.
• Intermittent Renewables: Solar power paired with storage, wind power paired with storage. Bloom Energy Corporation differentiates with stable, high-availability generation, higher power density, and smaller footprint.
• Advanced Nuclear: Advanced small modular nuclear reactors (SMRs). Bloom Energy Corporation offers faster deployment timelines.
• Traditional Backup Equipment: Diesel generators. Bloom Energy Corporation provides a more integrated, reliable, cleaner, and cost-effective 24x7 combustion-free solution.
• Other Fuel Cell Technologies: Proton exchange membrane fuel cells (PEM), molten carbonate fuel cells (MCFC), phosphoric acid fuel cells (PAFC). Bloom Energy Corporation's solid-oxide technology offers higher efficiency, long-term stability, no external fuel reformer, and fuel flexibility.

Emerging Competitive Threats: New entrants, disruptive technologies, and alternative solutions in the rapidly evolving energy and AI infrastructure markets.

Competitive Response Strategy: Bloom Energy Corporation's strategy focuses on scaling its onsite power platform by advancing its proprietary solid-state fuel cell technology, expanding manufacturing capacity, strengthening operational infrastructure, and accelerating technology development. This includes prioritizing markets with acute power availability, deployment speed, and energy economics needs, and developing pathways toward carbon-free operation (CHP, CCUS, biofuels, hydrogen).

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: Distributed energy generation and hydrogen production are emerging markets, and widespread acceptance or demand may be lower than expected. Economic benefits depend on gas and electricity prices, which are subject to change. Slower expansion of AI data centers could adversely impact business.
• Technology Disruption: New technologies and evolving industry standards could render products less desirable or obsolete.
• Customer Concentration: Revenue concentration from a few key customers (43% from one related party customer in 2025) poses a dependency risk.

Operational & Execution Risks

• Supply Chain Vulnerabilities: Reliance on a limited number of suppliers (some sole-source) for raw materials and components, global supply chain tightness, and potential impact from trade tariffs could lead to insufficient inventory, higher costs, or delivery delays.
• Geographic Concentration: While diversifying, the majority of revenue and assets are in the U.S., exposing the Company to regional economic and regulatory shifts. International expansion introduces additional complexities and risks.
• Capacity Constraints: Ability to increase production capacity (e.g., from 1 GW to 2 GW by end of 2026) is subject to risks like delays, cost overruns, geopolitical instability, and labor shortages.
• Project Execution Risks: Lengthy sales and installation cycles, permitting delays, utility interconnection issues, fuel supply requirements, and reliance on third-party contractors can lead to cost overruns, delays, and cancellations.
• Product Defects/Performance: Manufacturing defects, factors outside of control (fuel quality, environmental factors), and inaccurate estimates of useful life or failure to meet performance warranties could harm financial results and reputation.

Financial & Regulatory Risks

• Market & Financial Risks: Significant upfront product costs necessitate attracting financiers, which is influenced by interest rates, tax credits, and credit market conditions. The Company has incurred significant losses and may not be profitable in future periods. Indebtedness and associated covenants may limit financial and operating flexibility.
• Regulatory & Compliance Risks: Subject to a changing patchwork of energy and environmental laws (federal, state, international, local), including permitting, interconnection, and emissions regulations. Changes in government incentives (e.g., ITC, OBBBA) or their interpretation could reduce demand or harm financial results. Heightened scrutiny on fossil fuel-based products may lead to increased regulation or loss of incentives.
• Legal Proceedings: Involvement in legal proceedings and administrative processes (e.g., intellectual property disputes with Plansee SE/Global Tungsten & Powders Corp.) could result in substantial costs or adverse outcomes.

Geopolitical & External Risks

• Geopolitical Exposure: Trade tensions (U.S.-China), supply chain dependencies (Taiwan components), armed conflicts (Russia-Ukraine, Middle East), and strained international relations (U.S.-Europe) could adversely affect business, supply chains, and demand.
• External Events: Public health emergencies, natural disasters (earthquakes, floods, extreme weather), and other unforeseen events could disrupt operations.

Innovation & Technology Leadership

Research & Development Focus: Bloom Energy Corporation's R&D efforts are centered on advancing its proprietary high-temperature solid-oxide fuel cell technology. This includes addressing complex challenges in applied materials, processing, and packaging, leading to numerous proprietary material science solutions. Over more than a decade, the Company has focused on reducing costs, increasing system output, and extending fuel cell life by over two and a half times. R&D also supports new applications, performance enhancements, and system scalability.

Core Technology Areas:

• Solid-Oxide Fuel Cell Architecture: The foundational technology for both the Bloom Energy Server and Bloom Electrolyzer, leveraging electrochemical, non-combustion processes.
• AI Workload Compatibility: Developing systems capable of rapid and frequent adjustments to power demand for AI compute environments.
• Decarbonization Pathways: Investing in combined heat and power (CHP), carbon capture utilization and storage (CCUS), biofuels, and hydrogen technologies.

Innovation Pipeline:

• Bloom Electrolyzer: Designed for scalable and cost-effective hydrogen production, with a focus on higher efficiency than lower-temperature alternatives. Demonstrated the world's largest solid oxide electrolyzer at NASA's Ames Research Center.
• Carbon Capture Integration: Leveraging the relatively pure CO2 stream from Energy Server systems for easier and less expensive capture with third-party technology.

Intellectual Property Portfolio: Bloom Energy Corporation protects its intellectual property through a significant portfolio:

• Patent Strategy: 380 active utility patents and 183 patent applications pending in the U.S.; 252 active patents and 416 patent applications pending internationally. U.S. patents expire between 2026 and 2044.
• Trade Secrets & Trademarks: Protected through internal policies, non-disclosure agreements, cybersecurity tools, and registered trademarks (e.g., "Bloom Energy," "BE," "Energy Server").

Technology Partnerships:

• Strategic Alliances: Collaborations with companies like Chart Industries for CCUS integration.
• Research Collaborations: Not explicitly detailed, but R&D efforts involve a world-class team of scientists and technology experts, including 62 PhDs.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company emphasizes attracting and retaining exceptional talent, including key management, technical, engineering, finance, and sales personnel. It invests in development opportunities and uses targeted equity-based grants to retain critical talent.

Board Composition: The Board of Directors is classified into three classes with staggered three-year terms. Specific details on independence, expertise areas, or committee structure are not provided in the filing.

Human Capital Strategy

Workforce Composition:

• Total Employees: 2,214 full-time employees worldwide as of December 31, 2025, representing a 4% increase during 2025.
• Geographic Distribution: 1,752 in the U.S., 395 in India, and 67 in other countries.
• Skill Mix: Includes 62 PhDs in Materials Science, Electrical Engineering, Chemical Engineering, Mechanical Engineering, Civil Engineering, and Nuclear Engineering.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Actively sources candidates globally through job postings, networking, employee referrals, and job fairs.
• Retention Metrics: Not explicitly disclosed, but strategies include competitive compensation, benefits, and a focus on career development.
• Employee Value Proposition: Offers annual bonuses, stock awards, an employee stock purchase plan, 401(k) plan (with increased matching in 2025, raising participation from 57% to 64%), healthcare, insurance, paid time off, parental leave, flexible work schedules, mental health programs, and a fitness center. In December 2025, all worldwide employees below director-level with one year or more tenure received a special recognition grant in Restricted Stock Units.

Diversity & Development:

• Diversity Metrics: Not explicitly disclosed, but the Company states its "talented and diverse employee population" is a strength.
• Development Programs: Invests in online developmental training for skill enhancement, in-person management and leadership development (cohort-based programs to be expanded in 2026), and launched an enhanced "Be University" experience in February 2026.
• Culture & Engagement: Fosters an inclusive, respectful work culture focused on innovation, results, and doing the right thing.

Environmental & Social Impact

Environmental Commitments: Bloom Energy Corporation is committed to the transformation and decarbonization of energy and mobility sectors. Its technology supports biogas, carbon capture, hydrogen, combined heat and power (CHP), and microgrid projects to increase sustainability. Natural gas-based Energy Server systems are also positioned for near-term emission reductions.

Climate Strategy:

• Emissions Targets: Energy Server systems produce near-zero smog-forming criteria pollutant emissions (NOx, SOx, particulate matter) due to non-combustion electrochemical process. They consume no water during steady-state operation.
• Carbon Neutrality: Developing pathways toward carbon-free operation, including combined heat and power, carbon capture, biofuels, and hydrogen. The Energy Server system running on natural gas emits a relatively pure stream of CO2, which can be captured for near-zero carbon solutions.
• Renewable Energy: Bloom Electrolyzer produces hydrogen using electricity, which can be paired with renewable or nuclear feedstocks.

Supply Chain Sustainability: The Company responsibly sources components like interconnects and balance of system components.

Social Impact Initiatives:

• Community Investment: Not explicitly detailed in the filing.
• Product Impact: Not explicitly detailed in the filing beyond general statements about providing clean, reliable energy.

Impact Report: In April 2025, Bloom Energy Corporation released its 2024 Impact Report, "Energy for the Digital Revolution," its fifth dedicated report. It aligns with generally accepted sustainability frameworks and standards, including Sustainability Accounting Standards Board (SASB) standards, Task Force on Climate-related Financial Disclosure (TCFD) recommendations, Global Reporting Initiative (GRI) Standards, and introduced its first index aligned with International Financial Reporting Standard (IFRS) S2 disclosure standard.

Business Cyclicality & Seasonality

Demand Patterns: Bloom Energy Corporation's business and financial results are subject to industry-specific seasonal fluctuations, with the majority of bookings historically completed in the second half of a fiscal year, and a significant portion in the fourth quarter. However, this dynamic may be changing due to the accelerating buildout of AI data centers driving large deals and time-to-power needs. The desirability of its solutions can be impacted by the availability and value of governmental, regulatory, and tax-based incentives, which may change over time.

Economic Sensitivity: The Company's business is sensitive to macroeconomic factors including inflation, rising interest rates, recessionary environments, geopolitical instability, energy availability, and costs. These factors can influence customer capital expenditure priorities, financing constraints, and overall demand for products.

Industry Cycles: The Company's C&I footprint provides exposure to multiple industry cycles and demand drivers. The clean hydrogen market is in an early stage of development, with policy support being critical for its growth.

Planning & Forecasting: The Company's revenue, margins, and cash flow depend on bookings from prior years and current-year bookings. The lengthy sales and installation cycles, influenced by permitting, utility requirements, and customer schedules, introduce unpredictability in revenue recognition.

Regulatory Environment & Compliance

Regulatory Framework: Bloom Energy Corporation operates within a complex and evolving regulatory and legal environment, subject to a changing patchwork of energy and environmental laws and regulations at federal, state, regional, and local levels, as well as in foreign jurisdictions. Most existing laws were designed for traditional power plants, leading to inconsistencies in application to fuel cell technology.

Industry-Specific Regulations:

• Investment Tax Credit (ITC): The U.S. federal ITC for fuel cells operating on non-zero carbon fuels expired at the end of 2024. However, the One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, restored a 30% ITC for fuel cell property under Section 48E for projects beginning construction after December 31, 2025, regardless of emissions.
• Production Tax Credit (PTC): The Inflation Reduction Act of 2022 (IRA) includes a tech-neutral PTC (Section 45) and expanded tax credits for clean energy manufacturing (Section 45X).
• Carbon Capture Utilization and Storage (CCUS): The OBBBA preserves and modifies Section 45Q tax credit incentives for CCUS projects, providing an $85 per metric ton credit for captured carbon oxides.
• Interconnection & Tariffs: Federal Energy Regulatory Commission (FERC) and state utility commissions regulate wholesale sales of electric energy, capacity, and natural gas. FERC is considering reforms for onsite generation co-located with large loads, potentially creating uniform pathways and reducing interconnection delays.
• Environmental Laws: Compliance with laws like the Resource Conservation and Recovery Act (RCRA) and the Clean Air Act (CAA) is required, with permits often needed for larger Energy Server system installations.
• Hydrogen Market Regulations: Rules regarding hydrogen production, transportation, storage, and use are in flux and may limit market development.

Trade & Export Controls:

• Export Restrictions: Subject to trade barriers, export/import requirements, tariffs, and other restrictions.
• Sanctions Compliance: The OBBBA included restrictions on energy tax credits for U.S. taxpayers owned or controlled by certain "countries of concern" (China, Russia, Iran, North Korea) and limitations on "material assistance" from such countries in manufacturing products benefiting from tax credits.
• Foreign Trade Zones: Operates foreign trade zones in California and Delaware for deferment/avoidance of duties and tariffs.

Legal Proceedings: Bloom Energy Corporation is involved in ongoing legal proceedings, including an arbitration with Plansee SE/Global Tungsten & Powders Corp. regarding intellectual property and other claims, which could have a material adverse effect on the business.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: (3.2)% in 2025, (3.2)% in 2024, and (0.6)% in 2023. The rate is lower than the U.S. federal statutory rate primarily due to a full valuation allowance against domestic deferred tax assets.
• Net Operating Loss (NOL) Carryforwards: As of December 31, 2025, the Company had federal NOLs of $2.3 billion and California NOLs of $1.5 billion to reduce future taxable income. Other state NOLs amounted to $523.5 million, and Japanese NOLs were $7.0 million.
• Tax Credit Carryforwards: As of December 31, 2025, the Company had $47.9 million in federal research credits, $6.6 million in federal investment tax credits, and $21.8 million in state research credits.
• Valuation Allowance: A full valuation allowance of $872.6 million was recorded against domestic deferred tax assets as of December 31, 2025, as their realization is not considered more-likely-than-not.

Geographic Tax Planning:

• International Tax Structure: Foreign earnings have been subject to either the deemed one-time mandatory repatriation under the Tax Cuts and Jobs Act of 2017 or the current year income inclusion under the Global Intangible Low-Taxed Income (GILTI) regime. The Company intends to indefinitely reinvest foreign earnings in international operations, thus not accruing for potential U.S. state income tax and foreign withholding taxes on these earnings.
• Pillar Two Model Rules: Evaluating the impact of OECD's Pillar Two Model Rules for global minimum tax, with no material impact expected due to relatively small operations outside the U.S.

Tax Reform Impact:

• Inflation Reduction Act of 2022 (IRA): Established a tech-neutral electricity ITC and PTC, and incentives for clean energy manufacturing. The ITC for fuel cells operating on non-zero carbon fuels expired end of 2024, but safe harbor mechanisms were utilized for projects beginning construction prior to that date.
• One Big Beautiful Bill Act (OBBBA): Enacted July 4, 2025, restored a 30% ITC for fuel cell property under Section 48E for projects beginning construction after December 31, 2025, and reinstituted accelerated depreciation for property purchased and placed in service after January 19, 2025. It also restored expensing of domestic research expenditures for years beginning after December 31, 2024. The OBBBA introduced "Foreign Entity of Concern" (FEOC) provisions for Section 48E and Advanced Manufacturing Production Tax Credit (AMPTC) under Section 45X.

Insurance & Risk Transfer

Risk Management Framework: Bloom Energy Corporation has a cybersecurity risk management program designed to assess, identify, and manage risks to its information technology systems, integrated into its overall enterprise risk management program. This includes periodic risk assessments, a dedicated security team led by a Chief Information Security Officer, use of external service providers, internal audit monitoring, and cybersecurity awareness training.

Insurance Coverage: The Company maintains product liability insurance, but there is no assurance it will be sufficient to cover all potential claims and awards.

Risk Transfer Mechanisms:

• Indemnification Agreements: Enters into standard indemnification agreements with customers and business partners in the ordinary course of business, with exposure being unknown for future claims.
• Letters of Credit: Utilizes cash-collateralized letters of credit to guarantee performance under certain agreements, such as the limited indemnity and cooperation agreement for a major customer (released in Q1 2025) and other performance/financial obligations.
• Revolving Credit Facility: The $600.0 million Revolving Credit Facility (entered December 19, 2025) includes a $90.0 million letter of credit sub-facility, which provides for off-balance sheet commitments without requiring cash collateral.
• Pledged Funds: Established restricted cash funds (e.g., $20.0 million for PPA IIIb repowering, with $6.7 million released in Q4 2025) to secure operations and maintenance obligations.
• Collateral for Debt: Under the Revolving Credit Facility, Bloom Energy Corporation and certain subsidiaries have granted a first-priority lien on substantially all domestic assets (excluding intellectual property) and pledged equity interests in material domestic and foreign subsidiaries.