A man stands next to a Bloom Energy server called a "Bloom Box" during a product launch at the eBay headquarters in San Jose, California. Bloom Energy, a Silicon Valley start up, introduced the "Bloom Box", a solid oxide fuel cell server that can generate electricity at a cost of 8 to 10 cents per kilowatt hour using natural gas.

Stealth start-up Bloom Energy on Wednesday publicly unveiled an innovative fuel cell that promises to deliver affordable, clean energy.

Compact Bloom Servers built with energy cells made from silicon -- a plentiful element found in sand -- made their formal debut in an eBay building partially powered by the energy source.

"Bloom fuel cell technology has the potential to revolutionize the energy industry," California governor Arnold Schwarzenegger said while introducing Bloom founder K.R. Sridhar. "He is someone shaping the future of energy not just for California but for the world."

Former Secretary of State and Bloom Energy Board member Colin Powell (R) looks on during a product launch at the eBay headquarters in San Jose, California. Bloom Energy, a Silicon Valley start up, introduced the "Bloom Box", a solid oxide fuel cell device that can generate electricity at a cost of 8 to 10 cents per kilowatt hour using natural gas.

A high-powered audience gathered for the invitation-only event included Google co-founder Larry Page, eBay chief executive John Donahoe, and former US secretaries of state George Shultz and Colin Powell.

"The core of our technology simply is sand," Sridhar said pulling a black cloth off a clear glass container of sand and then holding up a greeting-card sized cell made from the material.

"It is available in plenty... and it has the scientific property that enabled us to make a fuel cell."

Fuel cell technology dates back to the mid 1800s, but Bloom found a way to eliminate the need for expensive metals such as platinum and to generate electricity by pushing around oxygen molecules.

Bloom Energy CEO K. R. Sridhar holds a fuel cell as he speaks during a Bloom Energy product launch at the eBay headquarters in San Jose, California. Bloom Energy, a Silicon Valley start up, introduced the "Bloom Box", a solid oxide fuel cell device that can generate electricity at a cost of 8 to 10 cents per kilowatt hour using natural gas. Justin Sullivan/Getty Images/AFP

Bloom servers work with a variety of fuels, meaning users can freely switch to whatever is locally available or most affordable, according to Sridhar.

The servers, referred to by some as "Bloom boxes" despite Sridhar cringing at the nickname, have been secretly tested by a group of major corporations including eBay, Wal-Mart, and Coca Cola.

Google was Bloom's first customer, buying four servers that it installed at its campus in Mountain View, California.

"I'm a big supporter of this," Page said during an on-stage panel chat with renowned Silicon Valley venture capitalist John Doerr of Kleiner Perkins Caulfield & Byers, a major backer of Bloom.

A television reporter stands near an installation of new Bloom Energy servers called the "Bloom Box" at the eBay headquarters in San Jose, California. Stealth start-up Bloom Energy on Wednesday publicly unveiled an innovative fuel cell that promises to deliver affordable, clean energy.

"I'd love to see us have a whole data center running on this at some point when they are ready," Page said.

Bloom servers capable of pumping out 100 kilowatts of electricity each cost from 700,000 to 800,000 dollars but the price is expected to drop quickly as production ramps up and efficiencies of scale are achieved.

Sridhar predicted that it will take about a decade for the technology to get to the point where it can be used to put affordable, clean energy servers in homes.

© 2010 AFP