Delaware teams with Bloom Energy

On June 9, Gov. Jack Markell announced that, after 14 months of effort, the state of Delaware, was teaming up with California-based fuel-cell manufacturer Bloom Energy, along with Delmarva Power and the University of Delaware, to bring Bloom manufacturing to the state.

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Bloom Energy will be building a manufacturing plant for its energy servers at the former Chrysler site at the University of Delaware. The plant is expected to create up to 1,500 jobs in Delaware. A close-up of a Bloom Energy Server at CalTech in California (top).

“Bloom Energy is helping power some of the world’s great companies – Google, FedEx, Coca-Cola, WalMart,” said Markell. “They have chosen Bloom because their fuel-cell technologies provide these companies reliable and efficient energy. It’s cleaner than fossil fuels, it’s always available, and its capacity can grow with the availability of its customers.”

“As part of building this new factory, Bloom will also plan to install 30 megawatts of Bloom Energy Servers in the state,” said Bill Kurtz, Chief commercial officer & chief financial officer for Bloom Energy. ”Our commitment to building the factory and installing the Bloom Energy Servers is contingent upon approvals from Delmarva Power and Light, the Delaware Legislature and Public Service Commission. The combination of Delaware’s visionary political leadership and pro-business policies, an innovative state utility, a world class university, skilled talent pool, great infrastructure and proximity to the Northeast market made Delaware our clear No. 1 choice for our new factory site.”

Bloom Energy will be located on up to 50 acres on the former Chrysler site at the University of Delaware, and Markell said the partnership would bring in approximately 1,500 new jobs.

“That would be jobs to get people to work here in Delaware soon, supplying the company in building what they call their ‘Bloom Boxes’ or energy services that can power businesses and homes around the country,” said Markell. “The expectation here is that 900 of them would be from Bloom, 600 from suppliers who may choose to locate on the site.”

Delaware Department of Natural Resources and Environmental Control Secretary Collin O’Mara said that air quality is a challenge Delaware has been facing for long time. With this partnership, O’Mara stated Delaware would be proactive in reducing gas emissions.

“The greenhouse gas emissions are reduced between 50 to70 percent,” he said. “Not only does it give you a cleaner source of energy … it does it in a much more reliable, high-performance way.”

He added that very little water is used to start up the boxes and what water is used is recycled.

Nothing has been formally finalized with all involved parties, as the legislature still has to recognize fuel cells as a source of renewable energy and regulatory approvals are needed from the Public Service Commission.
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Servers set up at eBay headquarters.

If the legislation is passed, Delmarva Power could file for a new manufactured-in-Delaware fuel-cell rate tariff.

“Delmarva can start adding over the next two years some 30 MW of Bloom Energy Servers’ reliable and consistent power to help power Delaware businesses and homes for less than the current cost of most other renewable energies. And with those approvals, Bloom Energy can get to work here in Delaware, getting more people working,” said Markell.

“The is the equivalent of taking 15,000 cars off the road in terms of the amount of emissions you’re going to avoid using this technology compared to the traditional energy coming off the grid,” added O’Mara.

Bloom Energy would occupy a 200,000-square-foot building, as well as six 50,000 square-foot buildings for their six suppliers.

“It’s a combination of engineering, design, quality control and manufacturing,” said Markell of what Bloom will be doing at the old Chrysler site.

“It would be the entire production of the cell from beginning to end, with a finished product coming off the line in the end,” added O’Mara.

Delaware Economic Development Office Director Alan Levin said that agreements are in place with Bloom, requiring a minimum of 50 percent of contractors must be Delaware contractors or subcontractors.

Levin said that a conditional grant of $11.25 million would be awarded to Bloom if they meet the goal of 900 employees over a five-year period. He added that the funding would be subject to callbacks “if they don’t meet their numbers.”

Markell noted that Bloom hopes to start construction on the site this year and to have production up and running in 2012.

“Delaware is committed to becoming one of the best places in the country to build a business and raise a family – something hundreds of new Bloom Energy employees will learn first-hand as they build on our state’s reputation for innovation,” said Markell. ”While there are still steps to take to make these jobs a reality, we are excited that Bloom made clear it wants those steps to be here, in Delaware.”