Brenmiller Energy to Launch Revolutionary bGen™ Thermal Energy Storage System to Electrify Thermal Oil: 8 Projects Worth Approximately $170 Million Already in Commercial Pipeline

Rhea-AI Summary

Brenmiller Energy (NASDAQ: BNRG) has announced the development of bGen ZERO Thermal Oil™ (bGen ZTO), a revolutionary thermal energy storage system designed to electrify thermal oil for industrial applications. The system, planned for commercial launch in 2026, will expand Brenmiller's addressable market into the $8 billion annual thermal oil heating equipment market, which grows at a 6% CAGR.

The company already has 8 projects worth approximately $170 million in its commercial pipeline. The bGen ZTO system will achieve nearly 100% cycle efficiency through simplified maintenance and indirect oil heating, capable of heating thermal oil up to 340°C. This innovation addresses a critical market need, as currently 95% of thermal oil is powered by fossil fuels in industries such as pharmaceuticals, chemicals, petrochemicals, and food processing.

Positive

• Commercial pipeline of 8 projects valued at approximately $170 million
• Expansion into $8 billion annual thermal oil heating equipment market
• Nearly 100% cycle efficiency in the new bGen ZTO system
• First-mover advantage with no competing thermal oil storage systems in the market

Negative

• Product won't be commercially available until 2026
• Significant R&D investment required for new product development

Insights

Clean Energy Technology Analyst

Brenmiller's bGen ZTO technology represents a pivotal market opportunity that extends beyond the immediate $170 million pipeline. The system's unique value proposition lies in its ability to deliver zero-emission heat at cost parity with fossil fuels - a rare achievement in the clean energy sector that typically requires premium pricing.

The technology's strategic importance is magnified by several factors:

• The $8 billion thermal oil market's 6% CAGR indicates strong organic growth, with potential acceleration as industries face increasing pressure to decarbonize.
• The system's modular design and simplified maintenance structure suggest potential for rapid scaling and deployment across diverse industrial applications.
• By targeting thermal oil applications up to 340°C, bGen ZTO addresses a critical gap in industrial decarbonization where few viable alternatives exist.

From a business perspective, the $170 million project pipeline represents a significant revenue opportunity relative to Brenmiller's current market capitalization of approximately $11 million. The Heat-as-a-Service model could generate predictable recurring revenue streams, potentially transforming the company's financial profile.

However, key considerations include execution risks associated with the 2026 commercialization timeline, potential technical challenges in scaling the technology and the need for substantial capital to support manufacturing and deployment. The success of initial deployments will be important for broader market adoption.

Industrial Market Analyst

The industrial implications of Brenmiller's bGen ZTO are particularly compelling for several key sectors:

• Pharmaceutical manufacturing, where precise temperature control and regulatory compliance are paramount
• Chemical processing, which requires consistent high-temperature operations
• Food processing, where energy costs significantly impact margins

The system's near-100% cycle efficiency addresses a critical pain point in industrial operations - the balance between operational reliability and energy costs. The current 95% fossil fuel dependency in thermal oil heating represents both a significant market opportunity and a compelling environmental imperative.

The $170 million project pipeline suggests early adopters are primarily large industrial operators who can validate the technology at scale. This approach could create a powerful reference case for broader market adoption, particularly in industries where energy costs represent a significant portion of operating expenses.

The 2026 commercialization timeline aligns with increasing industrial decarbonization pressures, particularly in regions with stringent emissions regulations. However, industrial adoption will likely depend on demonstrated reliability and minimal operational disruption during implementation.

• Electric thermal oil solution leverages award-winning bGen^™ efficiency and delivers low-carbon heat at price parity with fossil fuels
• Next-generation thermal storage system for industrial applications set to launch in 2026, addressing critical market need to decarbonize thermal oil heating
• Multiple commercial projects already in negotiations, demonstrating strong market validation, expanding Brenmiller’s total addressable market by an additional $8 billion annually.

TEL AVIV, Israel--(BUSINESS WIRE)-- Brenmiller Energy Ltd. (“Brenmiller”, “Brenmiller Energy” or the “Company”) (Nasdaq: BNRG), a leading global energy provider of thermal energy storage (“TES”) solutions to industrial and utility markets, today announced that it has commenced the development of a ground-breaking TES system, the bGen ZERO Thermal Oil^™ (“bGen ZTO”) designed to electrify thermal oil for industrial applications. Planned for commercial availability in 2026, bGen ZTO expands Brenmiller’s total addressable market into the $8 billion annual thermal oil heating equipment market growing at a compound annual growth rate (“CAGR”) of 6%.

Thermal oil is used for industrial heating processes of pharmaceuticals, chemicals, petrochemicals, and food processing industries. Today, 95% of thermal oil is powered by fossil fuels.

“Our extensive engagement with global industrial customers revealed a critical need for next-generation thermal oil heating solutions that eliminate fossil fuels while reducing complexity and cost,” said Avi Brenmiller, Chairman and Chief Executive Officer of Brenmiller Energy. “The bGen ZTO’s efficiency means our Heat-as-a-Service customers will benefit from zero-emissions heat at a price that is competitive with fossil fuel-based solutions. Our research and development engineers, the best in the industry in our opinion, are now developing the bGen ZTO planning for first delivery by 2026 for 8 projects worth approximately $170 million in our commercial pipeline. To the best of our knowledge, no competing thermal oil storage systems exist in the market today.”

A breakthrough innovation, bGen ZTO is a modular TES system that will combine an internal electric conversion for storage with integrated heat exchange, achieving nearly 100% cycle efficiency through simplified maintenance and indirect oil heating with minimal degradation, smooth stability, and limited breakdown, if any, while heating thermal oil up to 340°C.

The launch of bGen ZTO comes as industries increasingly turn to renewable energy solutions in the face of fossil fuel volatility.

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 development of bGen ZTO, including its future industrial applications, its commercial availability in 2026, the expectancy that bGen ZTO will expand the Company’s total addressable market into the $8 billion annual thermal oil heating equipment market growing at a CAGR of 6%, bGen ZTO’s benefits for the Company’s customers, the planned delivery of bGen ZTO for 8 projects worth approximately $170 million in the Company’s commercial pipeline, that bGen ZTO will combine an internal electric conversion for storage with integrated heat exchange, achieving nearly 100% cycle efficiency through simplified maintenance and indirect oil heating with minimal degradation, smooth stability, and limited breakdown, if any, while heating thermal oil up to 340°C. 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 crucial 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. The Company may not ultimately reach any definitive agreements related to bGen ZTO and the projects under negotiations and/or in the Company’s commercial pipeline may not occur. 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/20250204778787/en/

Media:

Tori Bentkover

brenmillerenergy@antennagroup.com

Source: Brenmiller Energy Ltd.

FAQ

What is the value of Brenmiller Energy's (BNRG) commercial pipeline for bGen ZTO projects?

Brenmiller Energy has 8 projects worth approximately $170 million in its commercial pipeline for the bGen ZTO system.

When will Brenmiller Energy (BNRG) launch its bGen ZERO Thermal Oil system?

Brenmiller Energy plans to launch the bGen ZERO Thermal Oil (bGen ZTO) system commercially in 2026.

What is the market size for Brenmiller Energy's (BNRG) new thermal oil system?

The thermal oil heating equipment market represents an $8 billion annual opportunity, growing at a 6% compound annual growth rate.

What temperature can Brenmiller Energy's (BNRG) bGen ZTO system achieve?

The bGen ZTO system can heat thermal oil up to 340°C with nearly 100% cycle efficiency.

What industries will Brenmiller Energy's (BNRG) bGen ZTO system serve?

The bGen ZTO system will serve pharmaceuticals, chemicals, petrochemicals, and food processing industries that require thermal oil heating.