California Resources and Bloom Energy Partner to Evaluate 1GW of Fuel Cell Generation for Data Centers

California Resources Corporation and Bloom Energy have signed a non-binding Memorandum of Understanding to evaluate the development of 1GW or more of solid oxide fuel cell generation across California, with data centers among the targeted offtakers. The partnership aims to couple Bloom's fuel cell systems with carbon capture and storage technology, positioning the projects as a source of clean, firm power for the state's growing energy demands.

The agreement calls for the deployment of Bloom's solid oxide fuel cells, known as the Bloom Box, which are stationary generators that convert fuels into electricity through an electrochemical process without combustion. While the technology can be powered by hydrogen, the vast majority of current installations rely on natural gas. Under the plan, Bloom would supply the fuel cells and third-party carbon capture technology, while CRC's carbon management business, Carbon TerraVault, would handle CO2 transport and storage. CRC would manage the projects overall.

The companies are targeting a range of offtake customers including data centers, utilities, community choice aggregators, municipalities, and other industrial users. The plan covers both front-of-the-meter and behind-the-meter projects in Central and Northern California. Front-of-the-meter projects would connect to utility offtake, while behind-the-meter projects across CRC's Central Valley footprint would serve industrial users seeking on-site power. The partners have also committed to completing the interconnection and permitting work needed to bring projects online.

According to the companies, Bloom's fuel cells produce a high-concentration CO2 exhaust stream that makes capture more efficient and cost-effective. The partners estimate that up to three million metric tons per annum of CO2 could potentially be captured and stored across the planned projects.

"California needs more clean, firm, reliable, and affordable power generated here at home. We are uniquely positioned with land, vast subsurface storage, and CO2 transportation and storage expertise," said Francisco Leon, CRC's president and CEO. "When combined with Bloom's non-combustion technology with highly efficient carbon capture, we are positioned to deliver clean and affordable energy to power data centers and the grid at scale." Aman Joshi, Bloom's chief commercial officer, added that the company's non-combustion technology makes carbon capture more efficient and economically viable at scale, opening a new path to carbon-neutral power generation and addressing the decarbonization needs of large critical infrastructure.

The agreement builds on Bloom Energy's expanding footprint in the data center power market. Earlier this year, the company expanded an agreement with Oracle to supply up to 2.8GW of capacity, following an initial 1.2GW deal signed last year. However, deployments at Oracle's Jupiter data center in Doña Ana County, New Mexico, have faced roadblocks due to opposition to the extension of a gas pipeline expected to feed the facility's fuel cells. Bloom has also signed deals with Equinix for deployments across 19 data centers with a capacity exceeding 100MW, and with US utility American Electric Power for up to 1GW of solid oxide fuel cells to power AI data centers off-grid. In October, AEP signed a 20-year Power Purchase Agreement with Google, which committed to offtake 702MW of power from a fuel cell generation project near Cheyenne, Wyoming, utilizing Bloom's fuel cells.

The partnership reflects a broader industry push toward on-site and behind-the-meter generation solutions as data center operators and utilities grapple with grid constraints and decarbonization targets. By integrating carbon capture with fuel cell technology, CRC and Bloom are seeking to demonstrate that reliable, dispatchable power can be delivered at scale while managing emissions, a proposition that could resonate with hyperscalers and industrial users facing increasing pressure to secure firm clean energy.