Delaware utility regulators on October 18 approved a plan to bill customers of utility
Delmarva Power to build a factory for Silicon Valley fuel cell startup Bloom Energy.

The company says its natural gas-powered Bloom Box fuel
cells will generate 30 megawatts of electricity in the state.

Greentechmedia said the decision was a “coup” for Bloom since Delmarva will be raising more than
$100 million over 20 years to help finance the project. That equates to
a $1.34-per-month surcharge on customer bills. Delaware is also
providing $18 million in state incentives, and the project is seeking a
federal cash grant for renewable power projects.

The project reportedly could grow to as much as 50 megawatt–an order of magnitude larger than Bloom’s biggest projects so far,
with California customers such as Google, eBay, Adobe and AT&T.

Some critics, however, question how well the tetchnology will compete with the natural gas-fired power plants that presently serve the grid.

Delaware legislators helped Bloom’s chances this past summer by re-defining natural-gas fuel cells as a renewable energy source. The change will allow Delmarva to claim the project in meeting its state renewable
energy mandates and will help Bloom market the electricity as green power.

Greentechmedia reports:

Bloom hasn’t put a price tag on the project yet, but it has touted the
potential economic benefits for Delaware — up to 900 jobs at its
factory and an estimated $300 million in annual economic activity.
That’s boosted project backers against critics who worry that Bloom’s
projects won’t come off in time or on budget. One conservative critic
has testified that the cost to Delmarva ratepayers could reach as high
as $3 to $4 a month if Bloom and the utility can’t maximize the value of
their “Bloom Electrons” in markets for renewable power. For its part,
Bloom has agreed to pay Delaware a fine as high as $41 million if it fails to build the factory.