• The Bloom Energy Server (commonly referred to as the Bloom Box) is a solid oxide fuel cell (SOFC) • Bloom Energy Server technology is based upon stacking small fuel cells which operate in concert • The technology strives to create an entirely new energy ecosystem that supports the existing energy system

1. Katz Graduate School of Business – MIS Practicum
Bloom Box Technology analysis
→ Amit Pawar
2011
University of Pittsburgh

2. Bloom Box technology:
Energy has become extremely crucial for success in the current technology era. An innovative
breakthrough that can resolve some of the energy problems is the Bloom Box.
• The Bloom Energy Server (commonly referred to as the Bloom Box) is a solid oxide fuel
cell (SOFC)
• Bloom Energy Server technology is based upon stacking small fuel cells which operate in
concert
• The technology strives to create an entirely new energy ecosystem that supports the
existing energy system
How the Bloom Box works?

3. Oxygen is drawn into one side of the unit, and
fuel (fossil-fuel, bio-fuel, or even solar power can be
used) is fed into the other side
The two combine within the cell and produce a
chemical reaction that creates energy with no burning,
no combustion, and no power lines
about 64 stacks of fuel cells can power a small
business like a Starbucks franchise
The device was originally invented to produce
oxygen on Mars but when NASA scrapped the Mars
mission, Sridhar reversed his Mars machine, pumping
oxygen in, instead of making oxygen
Cost of installing a Bloom Box:
• Bloom's boxes cost $700,000 to
$800,000, and each provides 100
kilowatts of electricity--enough to
power 100 average U.S. homes--with
roughly the footprint of a parking
space.
How the technology can be used in the IT sector?
• The company's pilot customers are using the cells, essentially, as backup generators.
• Some new customers like AT&T are using Bloom Box technology to incorporate
alternative and renewable energy sources into their sustainable energy portfolio
• There are two strategic options for Bloom Box deployment
– Equipment Purchase: Customers who want to maximize their return on
investment can purchase and install Bloom Energy Servers at their facilities and
capture all of the economic benefits of producing their own power for
significantly less than the price of electricity purchased from the grid.
– Bloom Electrons℠ Service: The Bloom Electrons service is designed to let
customers purchase only the electricity they consume. Customers can
experience the benefits of clean, reliable affordable energy on their own terms
without any upfront costs.
The IT sector will be early adopter but other industries are likely to be followers with respect to
applying this technology.

4. Benefits of using the Bloom Box at Facebook Inc.:
1) It uses lower cost materials
2) Provides unmatched efficiency in converting fuel to electricity
3) Ability to run on a wide range of renewable or traditional fuels
4) Easily to install and maintain
5) It is very compact
6) It's cheaper than the grid and it's cleaner than the grid
Strategic and Operational Impact:
• Reducing the electricity cost
• Establishing a green footprint: eBay's boxes run on bio-gas made from landfill waste, so
they're carbon neutral.
Risks:
1. The technology is still in the inception stage
2. Production rate is 1 box per day could lead to a very long lead time
3. Most analysts predict that electricity from Bloom boxes will require subsidies to meet
and beat the rates provided by the grid.
4. The pilot boxes, sold to the likes of eBay and Google, come in at $700,000 to $800,000,
which is 20 times the fuel cell price targets set by U.S. research labs to achieve
widespread adoption
Competition:
• GE has dismantled its fuel cell group five years ago
• Siemens has almost dismantled their fuel cell group
• United Technologies is the only large conglomerate that has fuel cell technology that
could compete with Bloom Energy
• Ceres Power in the UK and Ceramic Fuel Cells in Australia/Germany, have products close
to market launch
• Toshiba only has technology to provide energy for a small device, not a neighborhood.
Early adopters:
• Early customers include Google, eBay, Coca Cola, FedEx, and Staples
– John Donahoe, eBay's CEO, says its five boxes were installed over a year ago and
have already saved the company $200,000 in electricity costs
• Four units have been powering a Google data center for two years. They use natural gas,
but half as much as would be required for a traditional power plant.
• Wal-Mart Stores is a repeat customer
• Bloom Energy installations will be deployed at 11 AT&T facilities in California

5. Steps Facebook Inc. can take with respect to the Bloom Box technology:
Even though this technology is in the embryonic stage, it would be beneficial for Facebook to
evaluate the energy needs. The major benefit can be cost saving in electricity consumption by
using this technology. It will also help Facebook to achieve its corporate sustainability goals.
Facebook Inc. should use its influence to directly contact Bloom Energy and evaluate the
benefits of adapting the technology for powering its servers.
Sources of additional information:
1) Bloom Energy
1252 Orleans Drive
Sunnyvale, California 94089
• Telephone:(408)-543-1500
Fax: (408) 543-1501
• Email:info@bloomenergy.com
Web: www.bloomenergy.com
2) White paper: Understanding CO2 Emissions Accounting