The stationary power generation is where the bulk of growth currently exits. Pike Research estimates worldwide stationary fuel cell revenues to reach $9 billion and up to 4.5 GW installs by 2017. The major players in this category are Fuel Cell Energy and privately held Bloom Energy.
Fuel Cell Energy had a strong second quarter 2013, with a 75% year over year increase in revenues, declining operating losses and improving margins as yearly run rate increased to 70 MW, up from 56 MW in Q1. Q2 ended $428 million in total backlog versus just $181.4 million in the prior year quarter. FCEL is on track to complete installs for a 14.9 MW Bridgeport fuel cell park (the largest in North America) and the 59 MW fuel cell park in South Korea by POSCO Energy (which owns 16% of Fuel Cell Energy) to deliver full power by the end of 2013 to early 2014. The company closed out the second quarter with $71.1 million in total cash. On June 25,2013, the company raised $36 million (after fees) from a debt offering 8% on subordinated notes expiring June 2018 with a $1.55 common share conversion option. The company projects profitability upon exceeding the 80 MW run rate.
Bloom Energy, based out of Sunnyvale, CA, was brought into the spotlight in 2010 from a 60 Minutes segment. It has raised $1.1 billion in venture capital funding since inception. Bloom boxes generate 100-200KW. Their client list includes major players like Google, Apple, Ebay, FedEx and Adobe. Verizon contracted with Bloom Energy recently for fuel cells for its data centers in California. In the summer 2011 financing round, Bloom was valued at $2.7 billion pre-money. In an investor update, Bloom Energy revealed that Q3 2012 revenues were over $100 million with $32 million in losses, 26% quarter over quarter revenue increase and $133 million in cash. The CEO stated their margins were improving and profitability would be established in 2013.