This customer-focused effort is the largest
utility fuel cell initiative in the country
COLUMBUS,
Ohio, Nov. 14, 2024 /PRNewswire/ -- American
Electric Power (Nasdaq: AEP) is offering large customers a custom
solution to support their growing energy needs with fuel cell
technology. AEP has an agreement in place to secure up to 1
gigawatt (GW) of Bloom Energy solid oxide fuel cells for data
centers and other large energy users who need to quickly power
their operations while the grid is built out to accommodate demand.
This is the largest utility fuel cell technology initiative in the
nation.
AEP expects commercial load to grow an average of 20% annually
over the next three years, driven by data center development. The
company is in the process of finalizing the first customer project
agreements. Discussions are taking place with several other
customers about using this technology to provide additional power
to their sites while AEP makes the needed grid investments for the
long term. All costs for the fuel cell projects will be covered by
the large customers under a special contract.
"The rapid increase in energy demand is a challenge that AEP is
tackling by finding innovative solutions to meet the unique needs
of our customers," said Bill
Fehrman, AEP president and chief executive officer. "These
fuel cells will help provide data centers and other large customers
with the power they need to quickly expand in our regulated
footprint as we continue to build infrastructure to deliver
reliable energy for all our customers."
AEP has previous experience using Bloom Energy's fuel cell
technology to power customers. Initially, the projects will rely on
natural gas, however, the technology has the potential to use
hydrogen as an alternative fuel. These customer-sited
resources will be required to meet the interconnection rules of the
local operating company and will be designed to not send any energy
back to the electric grid. AEP will work with regulators to secure
the necessary approvals needed for these projects.
About AEP
Our team at American Electric Power is committed to improving
our customers' lives with reliable, affordable power. We are
investing $54 billion from 2025
through 2029 to enhance service for customers and support the
growing energy needs of our communities. Our nearly 16,000
employees operate and maintain the nation's largest electric
transmission system with 40,000 line miles, along with more than
225,000 miles of distribution lines to deliver energy to 5.6
million customers in 11 states. AEP also is one of the nation's
largest electricity producers with approximately 29,000 megawatts
of diverse generating capacity. We are focused on safety and
operational excellence, creating value for our stakeholders and
bringing opportunity to our service territory through economic
development and community engagement. Our family of companies
includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West
Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky
Power, Public Service Company of Oklahoma, and Southwestern Electric Power
Company (in Arkansas, Louisiana, east Texas and the Texas
Panhandle). AEP also owns AEP Energy, which provides
innovative competitive energy solutions nationwide. AEP is
headquartered in Columbus, Ohio.
For more information, visit aep.com.
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SOURCE American Electric Power