Tianfeng Securities says solid oxide fuel cell growth ceiling may be underestimated
In short
A Tianfeng Securities research report says the advantages of solid oxide fuel cells (SOFC) have strengthened further and their growth ceiling may be underestimated. The broker said it favours SOFC system makers, citing short delivery times, clean operation, prefabrication and compatibility with 800V DC, and expects Bloom Energy's shipments may be revised upward.
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Tianfeng Securities said in a research report that it is positive on solid oxide fuel cell (SOFC) system makers, arguing that the technology's advantages have strengthened further and that its growth ceiling may be underestimated, 36Kr and Jiemian reported on October 8. Yicai carried the same headline. [ 1 , 2 , 3 ]
According to the report, SOFC offers short delivery times, clean operation, prefabrication and compatibility with 800V DC. It said Bloom Energy has added production facility reserves and its shipments are expected to be revised upward. Over the medium to long term, the report said, the cost-reduction path for SOFC is relatively clear with large room for cuts, and SOFC could replace gas turbines, putting its ceiling possibly above market expectations. [ 2 , 3 ]
Why it matters
The report, carried by three Chinese business and tech outlets, signals broker interest in SOFC makers as a possible replacement for gas turbines. It is one brokerage's view, and the documents give no other analysts' assessments.
Key facts
- Tianfeng Securities issued a research report saying SOFC advantages have strengthened further and the growth ceiling may be underestimated. [ 1 , 2 , 3 ]
- The report said it is positive on SOFC (solid oxide fuel cell) host manufacturers. [ 2 , 3 ]
- Advantages cited include short delivery times, clean operation, prefabrication and suitability for 800V DC. [ 2 , 3 ]
- The report said Bloom Energy has added production facility reserves and its shipments are expected to be revised upward. [ 2 , 3 ]
- The report said the medium- to long-term cost-reduction path for SOFC is clear with large room for cost cuts. [ 2 , 3 ]
- The report said SOFC could replace gas turbines in future and its ceiling may be higher than the market expects. [ 2 , 3 ]
Confirmed by several sources
- Tianfeng Securities said SOFC advantages have strengthened further and the growth ceiling may be underestimated. [ 1 , 2 , 3 ]
- Tianfeng Securities expects Bloom Energy's shipments may be revised upward after it added production facility reserves. [ 2 , 3 ]
- Tianfeng Securities said SOFC could eventually replace gas turbines. [ 2 , 3 ]
Still unclear
- Whether SOFC will replace gas turbines and how far costs will fall. These are forecasts by a single brokerage; the documents give no figures or other views.
- How much Bloom Energy's shipments might be revised. The report as summarised gives no numbers.