RE: Bloom energy19 Jun 2026 10:36
The trigger for a significant price increase is the signing of new license partners.
At the moment, we have no partners in either Europe or North America, both of which are massive markets for large-scale off-grid electricity production. We have been told that 'discussions are ongoing', but not with whom or where.
The fund-raise had two objectives that indicate progress in those 'discussions' we can take assurance from.
a) Funds to make our balance sheet more robust, to give potential partners greater assurance of our robust financial credibility
b) We are increasing our manufacturing capacity for critical components as suppliers to our partners. That tells me three things
- Our existing partners are expanding their production capacity faster than their original plans, therefore creating demand that exceeds their local supply chain, which they specified to meet their original capacity plans.
- Ceres has good reason to believe that further demand for those components is on their radar, and they are building production capacity to meet that demand. That demand will be coming from new partners.
- Those new partners will be active in markets where demand is high and/or rising. That strongly suggests locations to meet data centre demand: Europe and North America.
There will be separate partners for each because tariffs will require production within the USA, and the impact on domestic electricity prices is such that US planning authorities are already prohibiting data centre construction unless they 'bring your own' power (and water) supplies.
In Europe, we are already seeing the same problem due to grid capacity and connection constraints. Dreams of the UK becoming an AI superpower are just dreams at the moment, hence our new UK partner. They are tied up with Delta, but will that give them teh volume they need? Probably not, as Delta is marketing hard in the USA, so they will be 'sold out' soon, same as everybody else in North America.
So what? Just relax and let the things that Ceres knows will happen, but is not yet allowed to say out loud, happen.
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