Brenmiller Energy Reports Third Quarter Operational Update and Financial Results
Brenmiller Energy Ltd. (TASE: BNRG, Nasdaq: BNRG) reported operational and financial results for the nine and three months ending September 30, 2022. Key highlights include the inauguration of its utility-scale project with Enel in Italy, commercial orders amounting to USD $9 million, and the first drawdown of €4 million from the European Investment Bank to bolster investment in its Dimona production facility. Anticipated full production capacity is set for 2023, driven by increasing demand for its thermal energy storage solutions amid rising energy prices.
- Inaugurated first utility-scale project with Enel in Italy.
- Received commercial orders totaling USD $9 million in 2022.
- Secured €4 million under a credit facility from the EIB for production facility investment.
- Expecting full production capacity in Dimona by the end of 2023.
- Research and development costs increased to USD $3.47 million from USD $2.71 million year-over-year.
Completion of Current Thermal Energy Storage Projects Positions Brenmiller for Additional Orders in 2023
ROSH HAAYIN,
Company Highlights
-
Inaugurated our first utility-scale project with Enel in
Italy ; operating successfully to date - Signed a memorandum of understanding with Green Enesys and Viridi RE to explore the integration of the Company’s bGen™ in potential Green Hydrogen and Green Methanol projects
-
Completed the first draw down for
€4 million , onJuly 28, 2022 , under our credit facility with theEuropean Investment Bank (“EIB”), to support accelerated investment in our production facility inDimona, Israel . - Completion and commissioning of pilot projects is laying a foundation for increased commercial orders in 2023 and beyond
-
Placed USD
in equipment orders to facilitate the expansion of the$2.0 million Dimona, Israel facility; on track to reach full production in 2023
Management Commentary
“Throughout 2022 Brenmiller has shown great progress towards its efforts to become one of the global leaders in thermal energy storage solutions for industrial and utility markets,” said Avi Brenmiller, Chairman and Chief Executive Officer of
“Looking forward, we continue to see strong demand for our thermal energy storage solution. Our bid pipeline is large and continuously growing, with
New Project Awards
To date in 2022, Brenmiller has received commercial orders of USD
In
Project Updates and Summary of Current Operations
Brenmiller has made material progress installing various pilot projects in diverse regions worldwide in an effort to demonstrate the use of its technologies for both industrial and utility-scale applications. The Company expects investments made into these pilot projects will accelerate commercialization of its proprietary TES technology. The pilot projects have progressed as planned and are continuing to reach major milestones.
-
Philip Morris: In
March 2022 , the Company signed an agreement, for up to USD , with Philip Morris Romania for the purchase of a bGen TES and services. The system will have a capacity of 31.5 MWh, including a biomass system and auxiliary equipment; the agreement includes an option to expand the system to 52.5 MWh. Payments will be made based on defined milestones in the agreement. Basic engineering of the system is complete and is moving to the detailed design phase. The next major milestone is receiving a building permit, which is expected in the first quarter of 2023.$9 million -
Enel: Brenmiller designed, manufactured, and installed a 24 MWh TES system for a combined cycle power plant for Enel in
Italy . This is the Company’s first utility-scale project. Enel integrated the system at the power plant and validated its performance in the field, in challenging operating conditions, and on a large scale. The Company’s bGen unit for Enel is currently in the commissioning phase and is expected to be fully operational by year-end 2022. The system offers reduced power plant start-up times and greater speed in load variations and can store excess heat, in addition to energy produced from renewable sources in the form of heat, to offer decarbonization services to Enel’s industrial utility customers. Enel has the option to add additional storage capacity at the site. -
SUNY Purchase: Brenmiller completed the installation of a 0.5 MWh thermal storage-based co-generation station with the
New York Power Authority (NYPA) atSUNY Purchase College inNew York . The system includes hybrid charging with both exhaust gas and electricity. The project is currently in the commissioning phase with final delivery expected in the first quarter of 2023. -
Fortlev: Brenmiller designed, manufactured, and installed a 1 MWh TES with Fortlev in
Brazil . The TES system, which is being charged with biomass, is now completed and is in operation as ofAugust 2022 . The system uses biomass instead of natural gas, allowing Fortlev to lower greenhouse gas (GHG) emissions associated with heating this air by approximately 800 metric tons annually. It also reduces costs by more than75% .
Dimona Israel Production Facility
On
The production facility is currently under construction and will have the capacity to produce up to 4,000 MWh per year of bGen thermal storage modules. To date, the Company has ordered equipment totaling USD
Research and Development
Research, development, and engineering expenses, net of government grants, were USD
Research, development, and engineering expenses, net breakdown:
Nine months ended
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2022 |
2021 |
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USD in thousands (unaudited) |
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Total research, development, and engineering expenses |
3,743 |
|
3,620 |
|
Less – grants |
(277 |
) |
(908 |
) |
Research, development and engineering expenses, net | 3,466 |
|
2,712 |
|
Balance Sheet Update
As of
About
Cautionary Note Regarding 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: its expected timeline for installing and completing its pilot projects and reaching other milestones; future pipeline projects and opportunities for which the Company expects to pursue commercial agreements; its plans to enter into a contract in
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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(Unaudited) |
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2022 |
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2021 |
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ASSETS |
USD in thousands |
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CURRENT ASSETS: |
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Cash and cash equivalents |
9,463 |
|
|
8,280 |
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Restricted deposits |
33 |
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|
47 |
|
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|
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Trade receivables |
721 |
|
|
162 |
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Other receivables |
1,081 |
|
|
553 |
|
|
|
|
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Inventory |
715 |
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|
95 |
|
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|
|
||
Assets held for sale (Rotem1) |
596 |
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- |
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TOTAL CURRENT ASSETS |
12,609 |
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|
9,137 |
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NON-CURRENT ASSETS: |
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Restricted deposits |
157 |
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|
179 |
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Investment in joint venture |
3 |
|
|
- |
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Right-of-use assets, net |
1,434 |
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|
3,018 |
|
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Property, plant and equipment: |
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Plant and equipment, net |
1,582 |
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|
1,583 |
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|
- |
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|
679 |
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Total property, plant and equipment |
1,582 |
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|
2,262 |
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TOTAL NON-CURRENT ASSETS |
3,176 |
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|
5,459 |
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TOTAL ASSETS |
15,785 |
|
|
14,596 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES: |
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Short-term bank credit and loans |
- |
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|
5 |
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Trade payables |
64 |
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|
264 |
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Deferred revenues |
403 |
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|
1,095 |
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|
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Other payables |
1,052 |
|
|
1,582 |
|
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|
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Provisions |
127 |
|
|
215 |
|
|
|
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Current maturities of liability for royalties |
325 |
|
|
41 |
|
|
|
|
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Current maturities of lease liabilities |
556 |
|
|
954 |
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TOTAL CURRENT LIABILITIES |
2,527 |
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|
4,156 |
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NON-CURRENT LIABILITIES |
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Loan from |
3,645 |
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- |
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Lease liabilities |
980 |
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|
2,448 |
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Liability for share options |
7 |
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|
213 |
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Liability for royalties |
2,095 |
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|
2,236 |
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TOTAL NON-CURRENT LIABILITIES |
6,727 |
|
|
4,897 |
|
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TOTAL LIABILITIES |
9,254 |
|
|
9,053 |
|
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EQUITY : |
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Share capital |
88 |
|
|
79 |
|
|
|
|
|
||
Share premium |
52,157 |
|
|
45,648 |
|
|
|
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|
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Receipts on account of warrants |
1,832 |
|
|
1,176 |
|
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Capital reserve from transactions with controlling shareholders |
54,061 |
|
|
54,061 |
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Capital reserve on share based payments |
2,492 |
|
|
1,318 |
|
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Foreign currency cumulative translation reserve |
(1,691 |
) |
|
(1,053 |
) |
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Accumulated deficit |
(102,408 |
) |
|
(95,686 |
) |
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TOTAL EQUITY |
6,531 |
|
|
5,543 |
|
|
|
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TOTAL LIABILITIES AND EQUITY |
15,785 |
|
|
14,596 |
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` |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
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(Unaudited) |
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Nine months ended |
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Three months ended |
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2022 |
|
2021 |
|
2022 |
|
2021 |
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USD in thousands (except per share data) |
||||||||||
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REVENUES |
1,520 |
|
|
330 |
|
|
- |
|
|
45 |
|
COSTS AND EXPENSES: |
|
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|
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COST OF REVENUES |
(1,239 |
) |
|
(3,388 |
) |
|
(356 |
) |
|
(799 |
) |
RESEARCH, DEVELOPMENT AND ENGINEERING EXPENSES, NET |
(3,466 |
) |
|
(2,712 |
) |
|
(999 |
) |
|
(814 |
) |
MARKETING AND PROJECT PROMOTION EXPENSES, NET |
(903 |
) |
|
(522 |
) |
|
(291 |
) |
|
(167 |
) |
GENERAL AND ADMINISTRATIVE EXPENSES |
(3,285 |
) |
|
(1,570 |
) |
|
(957 |
) |
|
(583 |
) |
SHARE IN LOSS OF JOINT VENTURE |
(29 |
) |
|
- |
|
|
- |
|
|
- |
|
OTHER INCOME (EXPENSES), NET |
50 |
|
|
(293 |
) |
|
12 |
|
|
- |
|
OPERATING LOSS |
(7,352 |
) |
|
(8,155 |
) |
|
(2,591 |
) |
|
(2,318 |
) |
FINANCIAL INCOME |
953 |
|
|
1,027 |
|
|
- |
|
|
239 |
|
FINANCIAL EXPENSES |
(323 |
) |
|
(312 |
) |
|
(180 |
) |
|
(177 |
) |
FINANCIAL INCOME (EXPENSES), NET |
630 |
|
|
715 |
|
|
(180 |
) |
|
62 |
|
LOSS FOR THE PERIOD |
(6,722 |
) |
|
(7,440 |
) |
|
(2,771 |
) |
|
(2,256 |
) |
OTHER COMPREHENSIVE LOSS – ITEM THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS – EXCHANGE DIFFERENCES ON TRANSLATION TO PRESENTATION CURRENCY |
(638 |
) |
|
(7 |
) |
|
(16 |
) |
|
28 |
|
COMPREHENSIVE LOSS FOR THE PERIOD |
(7,360 |
) |
|
(7,447 |
) |
|
(2,787 |
) |
|
(2,228 |
) |
|
|
|
|
|
|
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|
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LOSS PER ORDINARY SHARE (in Dollars) - |
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|
||||
Basic and fully diluted loss |
(0.46 |
) |
|
*(0.62) |
|
(0.18 |
) |
|
*(0.18) |
||
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*Retroactively adjusted to give effect to a two-for-one reverse stock split of the Ordinary Shares which became effective on |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited) |
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Nine months ended |
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Three months ended |
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|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
USD in thousands |
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CASH FLOWS - OPERATING ACTIVITIES: |
|
|
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|
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Net cash used for operating activities (see Appendix A) |
(8,181 |
) |
|
(5,776 |
) |
|
(3,199 |
) |
|
(1,927 |
) |
|
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|
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CASH FLOWS - INVESTING ACTIVITIES: |
|
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|
|
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|
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Purchase of equipment |
(38 |
) |
|
(42 |
) |
|
(8 |
) |
|
(16 |
) |
Installation of production line |
(346 |
) |
|
(165 |
) |
|
(238 |
) |
|
(69 |
) |
Investment in Joint venture |
(33 |
) |
|
- |
|
|
41 |
|
|
- |
|
Restricted deposits, net |
9 |
|
|
3 |
|
|
9 |
|
|
- |
|
Net cash used for investing activities |
(408 |
) |
|
(204 |
) |
|
(196 |
) |
|
(85 |
) |
|
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|
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CASH FLOWS - FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||||
Proceeds from issuance of shares and warrants, net |
7,174 |
|
|
8,473 |
|
|
- |
|
|
- |
|
Exercise of options and warrants |
- |
|
|
20 |
|
|
- |
|
|
- |
|
Loan received from |
3,726 |
|
|
- |
|
|
3,726 |
|
|
- |
|
Repayment of bank loan and interest thereon |
(5 |
) |
|
(12 |
) |
|
- |
|
|
(4 |
) |
Payments with respect to lease liabilities and interest thereon |
(430 |
) |
|
(400 |
) |
|
(146 |
) |
|
(17 |
) |
Repayment of royalties' liability |
(85 |
) |
|
- |
|
|
(61 |
) |
|
- |
|
Amounts recognized as liability for royalties |
359 |
|
|
40 |
|
|
331 |
|
|
- |
|
Repayment of shareholder's loan |
- |
|
|
(949 |
) |
|
- |
|
|
- |
|
Net cash provided by (used for) financing activities |
10,739 |
|
|
7,172 |
|
|
3,850 |
|
|
(21 |
) |
|
|
|
|
|
|
|
|
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
2,150 |
|
|
1,192 |
|
|
455 |
|
|
(2,033 |
) |
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS |
(967 |
) |
|
(25 |
) |
|
(136 |
) |
|
42 |
|
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
8,280 |
|
|
2,278 |
|
|
9,144 |
|
|
5,436 |
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
9,463 |
|
|
3,445 |
|
|
9,463 |
|
|
3,445 |
|
|
|
|
|
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|
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|
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|
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|
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - NET CASH USED FOR OPERATING ACTIVITIES |
|||||||||||
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Nine months ended |
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Three months ended |
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|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
USD in thousands |
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APPENDIX |
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|
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A. NET CASH USED FOR OPERATING ACTIVITIES |
|
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|
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|
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Loss for the period |
(6,722 |
) |
|
(7,440 |
) |
|
(2,771 |
) |
|
(2,256 |
) |
|
|
|
|
|
|
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|
||||
Adjustments for: |
|
|
|
|
|
|
|
||||
Depreciation |
183 |
|
|
193 |
|
|
62 |
|
|
70 |
|
Amortization of right-of-use assets |
400 |
|
|
309 |
|
|
127 |
|
|
128 |
|
Impairment loss of inventory |
2 |
|
|
109 |
|
|
2 |
|
|
109 |
|
Loss from realization of equipment, metals and parts |
- |
|
|
311 |
|
|
- |
|
|
- |
|
Increase (Decrease) in research and development expenses due to royalty obligation |
176 |
|
|
65 |
|
|
90 |
|
|
105 |
|
Provision |
(62 |
) |
|
304 |
|
|
(86 |
) |
|
(369 |
) |
Share in loss of joint venture |
29 |
|
|
- |
|
|
- |
|
|
- |
|
Other income |
(80 |
) |
|
- |
|
|
- |
|
|
- |
|
Fair value adjustment of share options' liability |
(192 |
) |
|
(1,023 |
) |
|
(14 |
) |
|
(278 |
) |
Other financial expenses |
104 |
|
|
181 |
|
|
58 |
|
|
109 |
|
Share-based payment |
1,174 |
|
|
196 |
|
|
446 |
|
|
72 |
|
|
(4,988 |
) |
|
(6,795 |
) |
|
(2,086 |
) |
|
(2,310 |
) |
Changes in operating working capital: |
|
|
|
|
|
|
|
||||
Decrease (increase) in trade and other receivables |
(1,222 |
) |
|
(8 |
) |
|
(513 |
) |
|
238 |
|
Decrease (increase) in inventory |
(633 |
) |
|
507 |
|
|
(390 |
) |
|
(109 |
) |
Increase (decrease) in deferred revenues and trade and other payables |
(1,338 |
) |
|
520 |
|
|
(210 |
) |
|
254 |
|
Net cash used for operating activities |
(8,181 |
) |
|
(5,776 |
) |
|
(3,199 |
) |
|
(1,927 |
) |
|
|
|
|
|
|
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|
||||
B. NON-CASH INVESTMENT AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||||
Recognition of Lease liability and right-of-use asset |
449 |
|
|
566 |
|
|
- |
|
|
420 |
|
Derecognition of lease liability |
1,512 |
|
|
- |
|
|
- |
|
|
- |
|
Derecognition of right of use asset |
1,432 |
|
|
- |
|
|
- |
|
|
- |
|
Borrowing Costs capitalized |
4 |
|
|
- |
|
|
4 |
|
|
- |
|
C. INTEREST PAYMENTS (included in financing activities items) |
52 |
|
|
23 |
|
|
19 |
|
|
7 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221123005485/en/
Media for Brenmiller
brenmillerenergy@antennagroup.com
Investor Relations for Brenmiller
chase.jacobson@val-adv.com
Source:
FAQ
What are Brenmiller Energy's recent financial results for 2022?
What projects has Brenmiller Energy recently completed?
What is the future production capacity for Brenmiller Energy's Dimona facility?
How does Brenmiller plan to address rising energy prices?