- Commercial sales included two major milestone projects, more
expected in 2024
- Launched bGen™ ZERO and opened gigafactory in Israel to
support potential sales of up to $200M
- Plans for additional plants to open 2027-2028 based on
anticipated growth in the U.S. and Europe
- Plans to establish a global network of JV
partnerships
Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy” or the
“Company”) (Nasdaq: BNRG), a global leader in thermal energy
storage (“TES”), published on March 18, 2024 its financial results
as of and for the twelve months ended December 31, 2023, in
addition to operational and recent business development
updates.
Management Commentary
“Brenmiller had a strong year in 2023, finalizing key commercial
agreements that will generate recurring revenue streams for the
company while reducing costs and carbon footprint for our
customers. We’re excited to carry this momentum forward in 2024, as
we anticipate revenue growth through several channels, including
direct sales, local developer partnerships, and distributor
collaborations,” stated Brenmiller’s Chairman and CEO, Avi
Brenmiller.
“Our current focus is small-to-medium sized electricity-to-heat
projects in the range of $5 to $15 million, and we will seek to
expand to larger projects in the near term as revenues grow. Having
already benefitted from grants for several of our projects, we
continue to focus on grant-backed projects to improve margins and
returns. Current grant and tax incentive plans in Europe and the
U.S. are attractive and offer our potential customers a favorable
return on investment.”
“In 2023, we inaugurated our new facility in Israel, the first
gigafactory of its kind in the world, to support potential sales of
up to $200 million. As we expect growth in demand in the U.S. and
Europe, we may establish additional plants in those key markets in
order to provide local supply, faster delivery, and lower
transportation costs. Brenmiller continuously innovates and this
year we launched our next-generation bGen™ ZERO. Our five-year
R&D plan includes ramping bGen™’s storage media temperature,
enabling cost reduction and opening additional market
segments.”
“During the last year, we aggressively pursued business
development and invested in our new gigafactory, while being very
prudent with cash management. Our cash used in operating activities
and our net loss both narrowed. We will continue to optimize
operational and cash efficiencies while pursuing increased
revenues. We believe we have the best thermal energy storage
solution in a massive global market that is recognizing storage is
the key link to achieving net zero emissions.”
Projects to Generate Recurring Revenues, Deliver Customer
Savings & Reduce Carbon Footprint
- Successfully handed over first bGen™ system in the U.S. to
State University of New York (SUNY): On February 6, 2024,
Brenmiller completed all required system tests and operator
training for its first bGen™ installation in the U.S. and handed
the system over to a SUNY campus. bGen™ is expected to eliminate
approximately 550 metric tons of greenhouse gas emissions for SUNY
annually. The project was developed and deployed in partnership
with the New York Power Authority, the largest state power
organization in the U.S., and financed in part by a grant from the
Israel-U.S. Binational Industrial Research and Development (BIRD)
Foundation.
- $3.55 million agreement to supply clean electric heat to
Wolfson Hospital: On February 1, 2024, Brenmiller signed a
7-year definitive agreement for a $3.55 million project to supply
electric process heat to Wolfson Hospital, a public medical center
located near Tel Aviv, in Holon, Israel. Brenmiller will generate
recurring revenues on an energy-as-a-service (EaaS) model. The
project benefits from a grant of up to $450,000 from the Israel
Innovation Authority. bGen™ ZERO will replace Wolfson Hospital’s
old diesel boilers that are both costly and polluting. bGen™ ZERO
has the potential to save Wolfson Hospital up to $1.3 million
annually and reduce the hospital’s local carbon footprint by 3,900
tons per year, according to the Israeli Ministry of Finance.
- EaaS project with Tempo (Heineken) to be completed in 2025,
estimated to save $7.5 million with 32MWh TES system: On
October 11, 2023, Brenmiller signed a contract with Tempo Beverages
Ltd., partially owned by Heineken International B.V., one of
Israel’s largest producers and distributors of beverages. bGen™
ZERO will replace Tempo’s heavy fuel oil boilers at its plant in
Netanya, Israel, and produce sustainable process steam using solar
photovoltaic (“PV”) energy and off-peak grid power when electricity
rates are most affordable. Brenmiller estimates this will save
Tempo $7.5 million over 15 years, eliminate the use of
approximately 2,000 tons of heavy fuel oil annually, and mitigate
over 6,200 tons of carbon emissions each year. The project, which
benefits from a grant of approximately $595,000 from the Israeli
Ministry of Environmental Protection and is expected to be
completed by the end of the first half of 2025.
Accelerating growth by the planned establishment of a global
network of JVs with local developers and working with
distributers
- Plans to ramp sales across Europe through a new joint
venture with Green Enesys and Viridi: On August 23, 2023,
Brenmiller signed a term sheet with European renewable energy
developers Green Enesys and Viridi to establish a new joint venture
in Spain. The new entity will deliver Brenmiller’s products,
including the bGen™ and bGen™ ZERO, through an EaaS business model,
beginning in Spain, Germany, and France.
- MoU with Green Enesys and Viridi to develop new-build
hydrogen and e-methanol projects in Europe: Brenmiller signed a
non-binding memorandum of understanding ("MoU") with SolWinHy Cádiz
S.L, a special purpose company jointly owned by Green Enesys Group
and Viridi RE, on December 13, 2023, to develop new-build hydrogen
and e-methanol projects. As part of the MoU, bGen™ has been
selected as the preferred solution for the Spain-based Cadiz
project which is designed to produce 29,000 tons of green
e-methanol annually and is expected to provide energy storage for
wind and solar powered facilities producing 220 MW of electricity
completely off-grid.
- MoU with India’s largest solar panel manufacturer Waaree
Energies to deploy thermal energy storage projects in India:
Under the terms of the MoU signed on July 26, 2023, Brenmiller and
Waaree will jointly explore, develop, and deploy solar-powered TES
systems in India, subject to entry into a definitive agreement.
Solar-powered bGen™ thermal energy storage systems can help India
meet its goal of transitioning to a 50% renewable energy supply by
2030.
- Plans to boost commercial traction in U.S. through a
distribution agreement with RSP Systems: On January 11, 2024,
Brenmiller signed a non-binding MoU with New York-based RSP Systems
for a distribution agreement. Subject to negotiating and execution
of definitive agreements, RSP Systems would be the exclusive
distributor of bGen™ in the U.S. Northeast Region. RSP Systems has
prior experience working with Brenmiller on its first project in
the U.S., combining Brenmiller’s TES with a Capstone turbine to
reduce greenhouse gas emissions and create monetary savings.
Awards
- TIME’s Best Inventions of 2023 named bGen™ as one of the
best inventions of the year in the Green Energy category.
- Bloomberg selected Brenmiller as a 2024 BNEF Pioneers
Finalist for being an innovative industrial decarbonization company
that has a technology to overcome the key challenges to achieving
net-zero.
Research and Development
Research and development expenses, net for the year ended
December 31, 2023, decreased by 32% to $3,178,000, compared to
$4,695,000 for the year ended December 31, 2022. This decrease was
primarily due to the $388,000 reduction in payroll and related
expenses, a $950,000 reduction in expenditure on materials used in
our research and development projects and a $382,000 reduction in
depreciation and other expenses in the year ended December 31,
2023, compared to the year ended December 31, 2022.
This decrease of research and development expenses was offset by
a decrease of $183,000 in government grants received in the year
ended December 31, 2023, compared to the year ended December 31,
2022.
The Company expects research and development will not change
significantly as it continues to develop storage units and bGen™
technology.
The following table discloses the breakdown of net research and
development expenses for the year ended December 31, 2023 and
2022:
Year Ended December
31,
Dollars in thousands
2023
2022
Salary and related expenses
$
2,268
$
2,656
Consultants and subcontractors
388
441
Expenditure on materials
70
1,020
Depreciation and other
104
486
Office maintenance
440
367
3,270
4,970
Less – grants
(92)
(275)
Total
$
3,178
$
4,695
Balance Sheet Update
As of December 31, 2023, Brenmiller had cash and cash
equivalents of $3.18 million, a net decrease of $3.33 million from
$6.51 million on December 31, 2022. This is attributable primarily
to fund raising net proceeds during 2023 of approximately $6.3
million which included participation from Brenmiller management,
offset by net cash used in operating activities of $6.9 million and
an additional $2.6 million used in connection with the Company’s
Dimona production facility. In January 2024, the Company raised
approximately $4 million in gross proceeds in an offering
registered with the Securities and Exchange Commission (“SEC”).
About bGen™ bGen™, Brenmiller’s TES system, converts
electricity into heat to power sustainable industrial processes at
a price that is competitive with natural gas. The bGen™ charges by
capturing low-cost electricity from renewables or the grid and
stores it in crushed rocks. It then discharges steam, hot water or
hot air on demand according to customer requirements. The bGen™
also supports the development of utility-scale renewables by
providing critical flexibility and grid-balancing capabilities.
bGen™ was named among TIME’s Best Inventions of 2023 in the Green
Energy category.
About Brenmiller Energy Ltd. Brenmiller Energy delivers
scalable thermal energy storage solutions and services that allow
customers to cost-effectively decarbonize their operations. Its
patented bGen™ thermal storage technology enables the use of
renewable energy resources, as well as waste heat, to heat crushed
rocks to very high temperatures. They can then store this heat for
minutes, hours, or even days before using it for industrial and
power generation processes. With bGen™, organizations have a way to
use electricity, biomass and waste heat to generate the clean
steam, hot water and hot air they need to mold plastic, process
food and beverages, produce paper, manufacture chemicals and
pharmaceuticals or drive steam turbines without burning fossil
fuels. For more information visit the company’s website at
https://bren-energy.com/ and follow the company on X (formerly
Twitter) 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: future revenue
streams for the company while reducing costs and carbon footprint
for the Company’s customers; achieving revenue growth through
several channels, including direct sales, local developer
partnerships, and distributor collaborations; expanding to larger
projects in the near term as revenues grow; grant and tax incentive
plans in Europe and the U.S. are attractive and offer potential
customers a favorable return on investments; the gigafactory’s
potential to support sales of up to $200 million; expected growth
in demand in the U.S. and Europe and the establishment of
additional plants in those markets in order to provide local
supply, faster delivery, and lower transportation costs; continued
optimization of operational and cash efficiencies while pursuing
increased revenues; that bGen™ will eliminate approximately 550
metric tons of greenhouse gas emissions for SUNY annually; bGen™
ZERO potential to save Wolfson Hospital up to $1.3 million annually
and reduce the hospital’s local carbon footprint by 3,900 tons per
year; estimation that bGen™ ZERO will save Tempo $7.5 million over
15 years, eliminate the use of approximately 2,000 tons of heavy
fuel oil annually, and mitigate over 6,200 tons of carbon emissions
each year, and that the project is expected to be completed by the
end of the first half of 2025; the establishment of a global
network of JVs with local developers and working with distributers;
entering into definitive agreements following signed MoUs; the
Company’s expectations that research and development will not
change significantly as it continues to develop storage units and
bGen™ technology. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240319447453/en/
Media: Tori Bentkover
brenmillerenergy@antennagroup.com
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