Brenmiller Energy to Localize Manufacturing of bGen™ Thermal Energy Batteries to Capitalize on Commercial Opportunities in Europe and the U.S.

Rhea-AI Summary

Brenmiller Energy (NASDAQ: BNRG) has announced its strategic decision to forgo a €3.5 million Tranche B commitment from the European Investment Bank (EIB) credit facility, focusing instead on establishing local manufacturing facilities in Europe and the United States.

The company's global project pipeline exceeds $500 million in potential value, with approximately $200 million in potential Heat-as-a-Service projects in Europe and $210 million in the U.S. market. Their Industry 4.0 compliant Dimona facility in Israel, built with €4 million from EIB's Tranche A, manufactures proprietary bCube™ components for bGen™ thermal energy storage systems.

The Dimona gigafactory has reached full automation as of Q1 2025, operating at 1 GWh annual production capacity, with potential to scale to 4 GWh annually, supporting up to $200 million in yearly revenue. The company currently has 100 MWh already in operation or under construction.

Positive

• Global project pipeline exceeds $500M in potential value
• Dimona facility capable of generating up to $200M annual revenue at full capacity
• 100 MWh of thermal energy storage already in operation or under construction
• Facility scalable to 4 GWh annual production capacity
• Local manufacturing expected to improve margins and reduce costs

Negative

• Forgoing €3.5M in non-dilutive funding from EIB Tranche B
• Additional capital may be required for new manufacturing facilities

Insights

Manufacturing Operations Expert

Brenmiller's strategic shift toward localized manufacturing represents a well-calculated industrial optimization move. The company's decision to establish regional production hubs closer to European and American customers addresses several critical operational challenges simultaneously.

The fully automated Dimona facility now operating at its designed 1 GWh annual capacity provides a proven, replicable manufacturing model that can be efficiently deployed in new markets. This standardized approach significantly reduces the technical risks typically associated with establishing new production facilities.

From an operational perspective, localizing production delivers substantial advantages: compressed supply chains reduce logistics costs and vulnerability to shipping disruptions, while regional assembly operations enhance responsiveness to customer needs and minimize inventory carrying costs. The company's mention of improved margins through localization aligns with established manufacturing principles, as proximity to end markets typically yields 15-20% logistics cost reductions.

The facility's scalability to 4 GWh demonstrates foresight in production planning, allowing for capacity expansion without substantial redesign costs. With 100 MWh already in operation or construction, Brenmiller has established proof-of-concept while positioning for growth in their $500 million potential project pipeline.

This manufacturing localization strategy reflects industry best practices for companies transitioning from centralized production to regional manufacturing networks as they scale operations internationally.

Financial Analyst

Brenmiller's decision to forgo the €3.5 million EIB credit facility tranche represents a calculated financial trade-off that prioritizes strategic positioning over immediate capital access. While this move reduces short-term available funding, it potentially unlocks greater financial benefits through localized manufacturing.

The existing Dimona facility, built with €4 million in non-dilutive financing, demonstrates efficient capital deployment, achieving full automation and 1 GWh production capacity capable of supporting current projects. The facility's potential to generate up to $200 million in annual revenue at full capacity represents a substantial revenue-to-investment ratio.

The company's $500 million project pipeline, split between European ($200 million) and U.S. ($210 million) opportunities, provides substantial market validation. For a company with $11.7 million market capitalization, this pipeline represents significant growth potential if successfully converted.

Financially, localized manufacturing offers compelling advantages beyond logistics savings: potential access to domestic manufacturing incentives (particularly in the U.S. through IRA provisions), reduced working capital requirements through shorter lead times, and improved project competitiveness through cost structure optimization.

The strategy of seeking similar non-dilutive funding for European facilities indicates disciplined capital management, potentially allowing expansion without shareholder dilution. While execution risks exist, this financially prudent approach balances growth ambitions with capital efficiency, positioning Brenmiller to capture market share in thermal energy storage without overleveraging its balance sheet.

• Local manufacturing expected to improve margins, leverage domestic incentives, and create jobs
• Brenmiller successfully utilized €4 million from the European Investment Bank (“EIB”) non-dilutive credit facility to build its gigafactory in Israel supporting current projects; at full capacity, the facility can support revenues of up to $200 million annually
• Current tranche availability will expire on March 31st, 2025, and the Company will not actively seek to extend it and rather prioritize the potential development of localized manufacturing facilities in Europe and in the U.S.

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 to industrial and utility markets, today announced its strategic decision to forgo the €3.5 million Tranche B commitment from the EIB credit facility agreement in favor of exploring potential establishment of manufacturing facilities in Europe and in the United States. This decision comes as the Company's global project pipeline exceeds $500 million in potential value, with significant opportunities in both European and U.S. markets.

The contemplated shift toward localized production is expected to deliver multiple benefits, including reduced costs, improved profit margins, lower capital requirements, and shorter supply chains. By establishing regional manufacturing hubs closer to customer sites where TES system components are assembled, Brenmiller believes it can enhance its competitive position in both project bidding and operations.

The Company's Industry 4.0 compliant Dimona facility in Israel, built with the initial €4 million funding from Tranche A of the EIB credit facility agreement dated March 31, 2021, manufactures Brenmiller's proprietary bCube™ components for its bGen™ TES systems. Since its May 2023 inauguration, the gigafactory facility has reached full automation as of the first quarter of 2025, and now operates at its designed 1 GWh annual production capacity—sufficient to support the current project pipeline. The facility's infrastructure can scale to 4 GWh annually as demand increases, potentially generating up to $200 million in yearly revenue.

"Our Dimona facility was designed with replicability in mind, making our gigafactory model inherently scalable and exportable," said Avi Brenmiller, Chairman and Chief Executive Officer. "We believe that the current business landscape and geopolitical climate reinforces our strategic plan to localize manufacturing in our key markets."

The Dimona facility has demonstrated the viability of Brenmiller's manufacturing model, providing a blueprint for future facilities. The Company aims to leverage this experience as it expands its global footprint, potentially seeking similar non-dilutive funding arrangements for a European facility. This expansion strategy aligns with increasing global demand for efficient TES solutions, positioning Brenmiller to capitalize on the growing market while maintaining technological leadership in the TES industry.

Europe represents approximately $200 million in potential Heat-as-a-Service projects, while the Company has identified opportunities worth $210 million in the U.S. market. In both regions, local manufacturing will create jobs and reduce logistics costs, strengthening Brenmiller's position as a leader in TES with 100 MWh already in operation or under construction.

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: the Company’s decision to forgo the €3.5 million Tranche B commitment from the EIB credit facility in favor of establishing manufacturing facilities in Europe and in the United States; the Company's global project pipeline exceeding $500 million in potential value; the Company’s significant opportunities in both European and U.S. markets; the contemplated shift toward localized production and its expected benefits; the Company’s facility's infrastructure ability to scale 4 GWh annually potentially generating up to $200 million in yearly revenue; non-dilutive funding arrangements for a potential European facility; and the Company’s addressable market assumptions in Europe and in the United States. 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. 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, 2024 filed with the SEC on March 4, 2025, 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/20250326917728/en/

Media Contact:

Tori Bentkover

brenmillerenergy@antennagroup.com

Source: Brenmiller Energy Ltd.

FAQ

What is the total value of Brenmiller Energy's (BNRG) current project pipeline?

Brenmiller Energy's global project pipeline exceeds $500 million in potential value, with $200 million in European projects and $210 million in U.S. opportunities.

What is the production capacity of BNRG's Dimona facility in Israel?

The Dimona facility operates at 1 GWh annual production capacity and can scale to 4 GWh, potentially generating up to $200 million in yearly revenue.

Why is BNRG foregoing the €3.5M EIB Tranche B commitment?

Brenmiller is prioritizing the establishment of local manufacturing facilities in Europe and the U.S. to improve margins, reduce costs, and shorten supply chains.

How much thermal energy storage capacity does BNRG currently have in operation or construction?

Brenmiller Energy has 100 MWh of thermal energy storage capacity already in operation or under construction.