Utility-scale solid oxide fuel cells move from pilot projects to reliable baseload power
Columbus, Ohio, US, 09 January 2026 – US power utility American Electric Power has taken a major step toward cleaner and more resilient energy by converting a long-dormant fuel cell option into a large-scale generation investment worth $2.65 billion. The move signals a turning point for solid oxide fuel cells, which are now shifting from small pilot projects to utility-scale baseload power assets.
Earlier this week, an AEP subsidiary executed a purchase agreement to expand its fuel cell deployment with Bloom Energy. The deal locks in a total of 1,000 megawatts of solid oxide fuel cell capacity across AEP’s service territory, making it one of the largest utility-backed fuel cell projects ever announced in the United States.
The agreement builds on an original deal signed in 2024. At that time, AEP committed to purchasing 100 megawatts of Bloom Energy’s stationary fuel cell systems, while keeping an option open for an additional 900 megawatts. That option has now been fully exercised, clearing the way for a broad, long-term rollout.
For AEP, the investment is about flexibility, reliability, and future readiness. According to the company, fuel cells allow power to be produced close to where it is needed, reducing stress on the grid and improving energy security for customers.
“This technology gives us the flexibility to deliver clean, reliable energy where and when our customers need it,” an AEP spokesperson said. “It’s a forward-looking investment in grid resiliency.”
Bloom Energy’s solid oxide fuel cells currently run on natural gas or biogas, but they are designed to transition to green hydrogen as supply improves and costs come down. This fuel flexibility makes the systems attractive for utilities looking to cut emissions without sacrificing reliability. The fuel cells are highly efficient, modular in design, and produce very low emissions compared to traditional power generation.
The systems will be deployed across AEP’s regulated and competitive operations, which span 11 US states and serve more than 5 million customers. Initial installations are planned in Ohio and Texas, with future expansion into data centers, manufacturing hubs, and grid-edge locations that need dependable, always-on power.
AEP and Bloom Energy said the rollout will focus on sites where emissions reduction and fuel flexibility matter most. These include areas with strong hydrogen development plans or clear clean energy targets. By placing fuel cells near high-demand users, the utility aims to improve reliability while supporting decarbonization goals.
“This agreement marks a new era of utility-driven fuel cell adoption at scale,” said Bloom Energy CEO KR Sridhar. “We are proud to help AEP deliver cleaner, more reliable power.”
Industry experts see the deal as a strong signal that fuel cells are no longer experimental. Instead, they are becoming a serious option for utilities looking to balance clean energy goals with the need for stable, dispatchable power. Unlike solar and wind, fuel cells can operate around the clock, making them suitable for baseload generation and critical infrastructure.
The project also reflects growing demand from large electricity users such as data centers, which require constant power and are under pressure to reduce carbon emissions. Fuel cells offer a practical solution by delivering low-carbon electricity directly at the point of use.
