AEP will invest about $4 billion in a fuel-cell project to supply Google

Google has secured a 20-year agreement to buy electricity from a planned 702-megawatt fuel-cell facility near Cheyenne, Wyoming. American Electric Power said on October 14 that it plans to invest approximately $4 billion in the project, using Bloom Energy technology to serve Google’s growing energy needs in the area.

A long-term buyer for a new power facility

The deal is a power purchase agreement: Google will buy electricity from Cheyenne Fuel Cell, LLC, the company associated with the facility. AEP owns and controls approximately 92% of that company. Funds advised by Basalt Infrastructure Partners own nearly 8%, putting the project under utility control with a minority infrastructure-investment partner.

AEP and its partners plan to begin construction in 2026. They expect the facility to be fully operational by the end of 2028. Those dates describe a future buildout, not electricity already being delivered: the purchase agreement establishes the customer relationship ahead of the plant’s expected completion.

AEP describes the development as part of its strategy to serve growing demand from large-scale customers. For Google, the stated purpose is to support its energy needs in the greater Cheyenne area. AEP chief executive Bill Fehrman also framed the facility as an opportunity to serve customers beyond the utility’s traditional territory.

This project demonstrates how we are creating new opportunities to meet evolving energy needs for customers both within and beyond our traditional service territory.

Bill Fehrman, AEP chairman, president and chief executive officer

Fuel cells, with carbon capture planned

The planned facility will use fuel-cell technology developed by Bloom Energy. AEP says the equipment can be deployed rapidly and provide reliable, on-demand electricity for customers with large power needs. That is the company’s case for choosing this technology; the construction schedule remains the timeline for this particular project.

AEP says the technology generates electricity without combustion of natural gas. Its emissions approach also includes plans to integrate carbon-capture technology, with the stated aim of delivering near-zero-emissions power. That description combines a generation method with a planned emissions-control system. Near-zero emissions is therefore a target for the completed facility, not a measured result from an operating plant.