Brenmiller and Rock Energy Storage Sign Exclusive Distribution Agreement Covering Northeast U.S.

Rhea-AI Summary

Brenmiller Energy has entered into an exclusive distribution agreement with Rock Energy Storage for its bGen™ thermal energy storage systems in the Northeast U.S. Covering states including Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York, the 5-year agreement projects cumulative sales milestones exceeding $150 million. This initiative is part of Brenmiller's broader $500 million project pipeline strategy, aiming to accelerate the adoption of its TES solutions. Rock Energy Storage will handle marketing, sales, and service of the bGen™ systems, with RSP Systems acting as the lead subcontractor. The collaboration underscores the strategic importance of the Northeast market for Brenmiller.

Positive

• Exclusive 5-year distribution agreement with Rock Energy Storage.
• Projected sales milestones exceed $150 million.
• Part of a $500 million project pipeline strategy.
• Targeted marketing, sales, and service of bGen™ systems in the Northeast U.S.
• Rock Energy Storage focuses exclusively on the TES market in the U.S.
• RSP Systems as the lead subcontractor ensures specialized support.

Negative

• No immediate financial impact disclosed.
• Dependence on a single subcontractor, RSP Systems, for critical operations.
• Potential risks associated with market penetration and sales targets in a new region.
• Previous Memorandum of Understanding with RSP Systems superseded, indicating possible changes in strategic plans.

Insights

Financial Analyst

Brenmiller Energy's partnership with Rock Energy Storage is projected to bring in over $150 million in cumulative sales milestones over the next five years. For investors, this agreement indicates a substantial revenue stream that could improve Brenmiller's financial health. The agreement also aligns with Brenmiller's larger $500 million project pipeline, hinting at future growth potential.

Short-term, this deal could lead to a rise in stock price as market sentiment reacts positively. Investors will want to track revenue recognition timelines to determine when these sales will start reflecting in Brenmiller’s financial statements.

Long-term, consistent execution and market penetration will be crucial. While the agreement solidifies a significant revenue forecast, real-world challenges like regulatory approvals, installation timelines and operational efficiencies will matter. Investors should also monitor Brenmiller's ability to maintain competitive pricing and technology leadership in the thermal energy storage sector.

Market Research Analyst

The thermal energy storage (TES) market in the Northeast U.S. is poised for growth, particularly given the region’s commitment to renewable energy and stringent sustainability goals. This agreement places Brenmiller Energy and Rock Energy Storage in a strong position to capitalize on the rising demand for green energy solutions. TES systems offer a unique value proposition by providing reliable energy storage that complements intermittent renewable energy sources like wind and solar.

By tapping into the Northeast market, both companies are likely to benefit from state-level incentives and federal policies promoting energy storage. The exclusivity of the agreement could provide a competitive edge, but market dynamics will require ongoing innovation and responsiveness to customer needs. Investors should keep an eye on market share movements and any potential competitive threats from other energy storage providers.

• Companies’ current cumulative projected sales milestones exceed $150 million
• Rock Energy Storage will market, sell, and service Brenmiller Energy’s bGen™ thermal energy storage systems in the Northeast United States
• Marks the latest in a string of commercial agreements aimed at accelerating the implementation of Brenmiller’s $500 million project pipeline

ROSH HA’AYIN, Israel--(BUSINESS WIRE)-- Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy” or the “Company”) (Nasdaq: BNRG), a leading global provider of thermal energy storage (“TES”) solutions to industrial and utility markets, today announced that it has signed an exclusive distribution agreement with Rock Energy Storage, LLC (“RES”) to sell and distribute its bGen™ TES systems in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York. The definitive 5-year agreement includes cumulative projected sales milestones exceeding $150 million.

Left to Right: Jim Koontz, Cory Glick, Doron Brenmiller, and Gadi Sharir gather in New York City to sign bGen™ distribution agreement (Photo: Brenmiller Energy)

Rock Energy Storage is a privately held company based in New York. It is focused exclusively on taking advantage of the sizable TES storage opportunity in the United States by distributing, installing, and servicing Brenmiller’s bGen™ TES solutions throughout the Northeast. RSP Systems will act as Rock Energy Storage’s lead subcontractor. Brenmiller had previously announced on January 11, 2024 that it had signed a Memorandum of Understanding with RSP Systems; the current agreement with RES supersedes the previous agreement and is a natural evolution of the companies’ successful collaboration.

“The Northeast is a strategic U.S. market for Brenmiller because of its forward-looking approach to electrification and decarbonization and is well-suited to take advantage of the sustainability and flexibility benefits that our cost-effective bGen™ technology unlocks,” stated Brenmiller’s Chairman and CEO, Avi Brenmiller. “We have enjoyed a very productive working relationship with RSP Systems since 2019 and are excited to grow our collaboration with the team through Rock Energy Storage.”

RSP Systems, a leader in choosing and implementing award-winning energy generation systems since 2004, worked with Brenmiller on its first U.S. bGen™ installation in New York.

“Brenmiller’s TES system is the competitive decarbonization solution we’ve been looking for, and we have already seen excellent reception from a range of market sectors and organizations that are forward-leaning in their efforts to decarbonize, including utilities, commercial and industrial, institutional, and food and beverage,” said Cory Glick, President and CEO of Rock Energy Storage. “Brenmiller’s technology qualifies for substantial federal incentives through the Inflation Reduction Act, and state and utility programs will provide additional tailwinds for our work to introduce the bGen™ to more states in the U.S. We look forward to partnering with Brenmiller to meet our energy customers’ rapidly changing and growing demands for clean power.”

As of May 1, 2024, Brenmiller and RES have numerous active project proposals in their shared pipeline, representing over 1,200 MWh of TES capacity.

Brenmiller’s bGen™ TES technology replaces the need for fossil fuel boilers at industrial and power plants, which contribute to nearly one-quarter of all global emissions. It uses crushed rocks to store low-cost electricity from renewable or other sustainable sources and dispatches steam, hot water, or hot air according to customers’ needs. Brenmiller’s TES technology is modular and highly configurable and provides heavy-emitting and mission-critical customers with scalable access to zero-emission heat while ensuring 24/7 operational reliability.

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 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 (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: that the cumulative projected sales milestones between the Company and RSP will exceed $150 million, that Rock Energy Storage will market, sell, and service Brenmiller Energy’s bGen™ thermal energy storage systems in the Northeast United States, and Brenmiller’s $500 million project pipeline. 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/20240606637013/en/

Media:

Tori Bentkover

brenmillerenergy@antennagroup.com

Source: Brenmiller Energy Ltd.

FAQ

What is the new agreement between Brenmiller Energy and Rock Energy Storage?

The new agreement is an exclusive 5-year distribution deal for Brenmiller's bGen™ thermal energy storage systems in the Northeast U.S., with projected sales milestones over $150 million.

Which states are covered under Brenmiller's new distribution agreement?

The distribution agreement covers Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York.

What are the projected sales milestones for Brenmiller's distribution agreement?

The projected sales milestones for the 5-year agreement exceed $150 million.

Who will market and service Brenmiller's bGen™ systems in the Northeast U.S.?

Rock Energy Storage will market, sell, and service Brenmiller's bGen™ systems in the Northeast U.S.

What is the strategic importance of the Northeast market for Brenmiller?

The Northeast U.S. is a strategic market for Brenmiller due to its significant TES storage opportunities and alignment with the company's $500 million project pipeline.