(Bloomberg) – A clean energy company does not complain about climate change laws every day. And that is exactly what fuel cell manufacturer Bloom Energy Corp. is doing, while its shares are sinking to an all-time low.
Bloom executives forecast unchanged sales for 2020 during a late-term earnings forecast for late-Monday late Monday, and at least made profit forecasts part of the blame for clean energy laws in California and New York, two of the company's strongest markets. The laws that require states to 100% carbon-free electricity by 2045 and 2040, respectively, have confused Bloom customers and led to delays in ordering, "said K.R. Sridhar.
"Such goals are well intentioned but poorly informed," he told analysts on the call. "There is no credible way to achieve a 100% renewable energy target without compromising public safety, reliability, resilience, and affordability of the power supply."
The laws may pose a problem for Bloom, as its cells in Although this is possible, it may be configured to run on hydrogen or biogas. According to the company, Bloom's fuel cells produce greenhouse gas emissions when using natural gas, but lower than the emissions from gas turbines in standard power plants.
Sridhar also sought to increase cities' interest – like Berkeley, California – in banning natural gas from new buildings.
"It's a wishful thinking," he said.
However, the confusion over the laws and impact on Bloom should be temporary, said Sridhar
The disappointing forecasts for 2020 led half a dozen analysts to lower their price targets. Shares fell 41% on Tuesday, the highest since the company's IPO in 2018.
(Details on greenhouse gas emissions from Bloom fuel cells added in 4th paragraph.)
David R. Baker in San Francisco at [email protected]
Contacting editors responsible for this story: Lynn Doan at [email protected], Millie Munshi, Steven Frank
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