Brenmiller Energy: Chairman and CEO Reflects on 2024 Milestones, Sets Sights on Capturing Sizeable Share of $63 Billion Thermal Energy Storage Market in 2025

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01/06/2025 - 08:30 AM

Brenmiller to drive energy transformation for industrial customers, with a commitment to creating long-term value for shareholders
Brenmiller operates a state-of-the-art TES gigafactory, with capacity to produce up to 4 GWh of bGen™ systems valued at up to $200 million
Brenmiller is currently developing 7 projects around the world and advancing its $440 million commercial pipeline, aiming to convert it into commercial opportunities for potentially 12 industries across 13 different countries

TEL AVIV, Israel--(BUSINESS WIRE)-- Brenmiller Energy Ltd. ("Brenmiller," "Brenmiller Energy" or the "Company") (Nasdaq: BNRG), a leading global provider of thermal energy storage ("TES") solutions for industrial and utility customers, is proud to provide shareholders with a comprehensive overview for its end of 2024 activity. Chairman and Chief Executive Officer, Avi Brenmiller, reflects on the Company’s achievements during 2024 and outlines the Company’s exciting path forward, including insights into strategic initiatives, technological advancements, and how its unwavering commitment to sustainability and innovation can make 2025 a transformative year.

Dear Valued Shareholders,

With 2024 in our rearview, it's worth pausing to appreciate the journey we’ve taken to get here—a journey marked by pioneering innovation in TES, strategic partnerships with leading energy industry players, and an uncompromising commitment to redefining the way global industries think about and consume heat. Having successfully navigated this journey, I believe that Brenmiller Energy has become more than a company focused on creating shareholder value: we’ve built a conduit for a resilient, reliable, and secure renewable energy future.

The strides we made in 2024 represent more than incremental improvements; we’ve achieved critical milestones that we believe can position us to deliver transformative results in 2025. With a $440 million global pipeline of commercial opportunities and the ability to manufacture up to 4 GWh of bGen™ TES systems from our factory, we are positioned better than ever to serve rapidly growing demand for clean and low-cost industrial heat.

Transformation is in Progress

Over fifty percent of our $440 million commercial pipeline originates in Europe, where demand for industrial decarbonization solutions is enormous. During 2024, we formed Brenmiller Europe S.L. (“Brenmiller Europe”), a joint venture with leading renewable energy developers Green Enesys and Viridi, to take advantage of the market’s dynamics and convert our pipeline into revenue-generating projects. We believe that Brenmiller Europe will help grow our global sales and service infrastructure and accelerate our ability to deliver customers lower energy costs and a reduced carbon footprint.

One of our first European projects is a 12-year Heat as a Service (“HaaS”) agreement with Partner in Pet Food Hungaria KFT (“PPF”), one of Europe’s leading private-label pet food producers. We’re developing a 30 MWh bGen™ ZERO system, which we will use to sell zero-emission electric steam to PPF at a fixed rate. Thanks to favorable energy market dynamics in Hungary, we believe we’ll be able to further increase shareholder returns by offering grid balancing services to local transmission system operators.

In Germany, our partnership with Entelios AG has opened the door to one of the world’s largest and most advanced industrial energy markets. The country’s robust regulatory environment and focus on increasing renewable integration create an ideal environment for our bGen™ technology to thrive. Through our presence in Europe, we’re well-positioned to capture a sizeable share of Germany’s projected $2.9 billion market for TES solutions by 2028.

Beyond Europe, our collaboration with Tempo, partially owned by Heineken International B.V., is experiencing great momentum. One of Israel’s largest producers and distributors of beverages for renowned brands like Heineken and Pepsi, Tempo’s decision to replace its fossil fuel boilers with our bGen™ ZERO TES technology not only demonstrates trust in our cutting-edge solution but is also reflective of a rapidly growing paradigm shift across global industrial sectors: clean heat is a competitive advantage. Using off-peak electricity from the grid and solar PV, our bGen™ system for Tempo is expected to mitigate over 6,200 tons of carbon emissions annually. We estimate Tempo will save approximately $7.5 million on energy costs over 15 years using TES. We recently completed manufacturing the 32 MWh system’s components from our gigawatt factory and are on track to begin on-site assembly in early 2025.

Also in Israel, we signed a definitive agreement with Wolfson Hospital to supply low-carbon electric heat over seven years. The $3.55 million project will replace Wolfson Hospital’s diesel boilers with a 12 MWh bGen™ ZERO system. The switch to electric heat has the potential to save Wolfson Hospital up to $1.3 million annually and reduce its local carbon footprint by 3,900 tons per year.

Finally, our recently announced collaboration with TUTCO Heating Solutions Group (“TUTCO”), a global leader in electric heating and part of a £5.6 billion industrial technology company, has strengthened our manufacturing supply chain and expanded our production capacity, ensuring scalability and customer demand.

These deals validate our bGen™ technology’s maturity and reliability, advance our business goals, and reinforce growing global demand for cleaner, more affordable, and more resilient energy. We believe our approach to delivering clean heat uniquely positions us to address the industrial sector's most pressing decarbonization challenges with competitive distinction.

The Global Energy Market in 2025

According to Bloomberg New Energy Finance, the energy storage market is projected to grow at a CAGR of 23% until 2030, fueled by increasing renewable generation and grid modernization efforts. This expansion presents a unique opportunity for Brenmiller Energy because, unlike other forms of energy storage, our TES solutions directly address challenges like intermittency, high costs, and scalability.

Geopolitical and economic shifts are also working in our favor. A growing number of nations continue to recognize the near- and long-term value of decarbonization and energy independence, creating what we believe will be unprecedented demand for reliable, affordable, and highly scalable storage solutions, which our bGen™ technology delivers. bGen™ ability to integrate seamlessly with industrial and electrical market applications is a key competitive advantage, making Brenmiller Energy a vital and contributing partner in the global energy transition.

A Forward-Looking Perspective—Inflection Point in 2025

Building on last year’s significant milestones, we’re confident that 2025 will be transformative for our Company for several reasons:

Unprecedented Market Penetration
The relationships we’ve built throughout Europe and across North America and Asia, combined with our expanding production capacity, will enable us to serve more clients in more regions. This geographic diversification reduces risk while increasing revenue streams.
Commercialization at Scale
The bGen™ ZERO system’s commercial rollout represents a tipping point. Our gigafactory has up to 4 GWh of manufacturing capacity, which translates into a potential $200 million worth of production. With growing interest from some of the world’s largest producers of consumer goods, including Fortune 500s, seeking to decarbonize their operations, we anticipate strong adoption and a steady revenue ramp-up throughout 2025.
Innovation and Differentiation
Brenmiller Energy doesn’t just compete; we lead. Our focus on research and development ensures we remain ahead of the curve, aiming to offer solutions that are both technologically superior and economically viable.
Enhanced Revenue Streams
We’re meeting key project milestones on schedule and on budget, which can unlock critical performance-based revenues. Additionally, collaborations like the one with Entelios are focused exclusively on creating additional revenue streams for clients and shareholders. By enrolling our bGen™ systems in local energy market programs, we create an extraordinary win-win scenario—for our Company, our clients, the grid, and the environment.
Global Environmental, Social and Governance (“ESG”) Momentum
As carbon regulations tighten and corporations increasingly realize the market value of cleaner and lower-cost energy technologies, our TES solutions offer a unique advantage. They comply with ESG criteria and can catalyze industrial sectors’ decarbonization goals, creating a competitive advantage for our customers and a compelling value proposition for investors.
Strategic Capital Allocation
Our private placement financing, which closed in December at a premium to the market price for our share demonstrates trust and enthusiasm from this institutional shareholder. These funds are not just a vote of confidence—they fuel our growth engine. Every dollar is strategically allocated to initiatives that maximize return on investment, from ramping production to expanding market penetration. Many of the large-scale projects, either in development or various stages of negotiation, are planned to benefit from non-dilutive project-based financing as well as government grants.
Our Unique Ability to Serve Demand
Valued shareholders, the current reality of what stands in front of us is clear—the world needs better, more affordable, more sustainable, and less volatile energy solutions, and we need them now.

We believe our technology, partnerships, and market positioning will translate to our Company capturing a significant share of this burgeoning market, while others in the competitive landscape are still in the early stages of evaluating technology. Thus, your investment in Brenmiller Energy is one that can help shape the age of industrial electrification.

As we aim to redefine what's possible in industrial decarbonization, together, I believe we can create a future that's more than sustainable; it's prosperous.

Sincerely,

Avi Brenmiller
CEO, Brenmiller Energy

About Brenmiller Energy Ltd.

Brenmiller Energy helps energy-intensive industries and power producers end their reliance on fossil fuel boilers. Brenmiller’s patented bGen™ thermal battery is a modular and scalable energy storage system that turns renewable electricity into zero-emission heat. It charges using low-cost renewable electricity and discharges a continuous supply of heat on demand and according to its customers’ needs. The most experienced thermal battery developer on the market, Brenmiller operates the world’s only gigafactory for thermal battery production and is trusted by leading multinational energy companies. For more information visit the Company’s website at https://bren-energy.com/ and follow the Company on X and LinkedIn.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses: the $63 billion TES market in 2025; the Company’s ability to drive energy transformation for industrial customers; the Company’s commitment to creating long-term value for shareholders; the Company’s TES gigafactory capacity to produce up to 4 GWh of bGen™ systems valued at up to $200 million; the Company’s $440 million pipeline of commercial opportunities for potentially 12 industries across 13 different countries; that the Company is in a position to deliver transformative results in 2025; that Brenmiller Europe will grow the Company’s global sales and service infrastructure and accelerate its ability to deliver customers lower energy costs and a reduced carbon footprint; that the Company will be able to further increase shareholder returns by offering grid balancing services to local transmission system operators; that the Company’s presence in Europe positions it to capture a sizeable share of Germany’s projected $2.9 billion market for TES solutions by 2028; the outcomes and benefits of the Company’s current projects and collaboration; and the expectation that 2025 will be a transformative year for the Company. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this press release. Factors that may affect the Company’s results include, but are not limited to: the Company’s planned level of revenues and capital expenditures; risks associated with the adequacy of existing cash resources; the demand for and market acceptance of our products; impact of competitive products and prices; product development, commercialization or technological difficulties; the success or failure of negotiations; trade, legal, social and economic risks; and political, economic and military instability in the Middle East, specifically in Israel. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 filed with the SEC on March 18, 2024, which is available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.