Brenmiller Hits Key Project Milestone in Hungary: Secures Land for 30 MWh Thermal Energy Storage Project for Pet Food Manufacturer

Rhea-AI Summary

Brenmiller Energy (Nasdaq: BNRG) announced a key milestone in its 30 MWh thermal energy storage (TES) project in Hungary. Brenmiller Europe, a joint venture with Green Enesys and Viridi RE, established a wholly-owned subsidiary, Bren-Dom-TES Kft, securing land adjacent to Partner in Pet Food Hungaria KFT's (PPF) factory. The 10,000+ square meter plot will host the bGen™ ZERO TES system, replacing PPF’s fossil fuel boilers and reducing gas consumption by 25-30%, thereby lowering energy costs and carbon footprint.

The project includes a 12-year Heat as a Service (HaaS) agreement, providing PPF with electric steam at a fixed price. Brenmiller Europe will also earn additional revenue by offering grid balancing services to the local transmission system operator. The initiative supports PPF’s goal to cut emissions by 42% by 2030.

Chairman and CEO Avi Brenmiller emphasized the significance of local operations in Hungary, enabling timely customer commitments and advancing European clean industry initiatives. Approximately 50% of Brenmiller’s $440 million global pipeline is in Europe, spanning nine industries across eleven countries. The company uses flexible business models, including direct technology sales and HaaS, to lower electrification costs and increase recurring revenues.

Positive

• Secured land for 30 MWh TES project in Hungary.
• 12-year HaaS agreement with PPF, reducing gas consumption by 25-30%.
• Potential for additional recurring revenue through grid balancing services.
• Supports PPF’s emissions reduction target of 42% by 2030.
• 50% of $440 million global pipeline in Europe.

Negative

• None.

Insights

Energy Infrastructure Analyst

This project milestone marks a strategic advancement in thermal energy storage implementation. The establishment of the Hungarian SPV and land acquisition for the 30 MWh bGen™ ZERO system represents a concrete step toward project execution. The 12-year HaaS agreement structure is particularly noteworthy, as it provides predictable long-term revenue streams while offering PPF immediate operational benefits without capital investment.

The dual revenue potential is compelling - primary income from the HaaS agreement with PPF, plus additional revenue opportunities from grid balancing services. The projected 25-30% reduction in gas consumption for PPF translates to substantial cost savings and emissions reductions, making the value proposition highly attractive for similar industrial clients. With 50% of Brenmiller's $440 million pipeline focused on Europe, this project serves as a important proof-of-concept for market expansion.

For investors, this development signals strong execution capability and validates the commercial viability of Brenmiller's technology. The structured approach to project financing through local entities demonstrates sound financial planning that could accelerate future deployments.

Market Strategy Analyst

The strategic positioning of this project is exceptional within the current European energy transition landscape. By securing PPF, a major industrial player producing 700,000 tons of pet food annually across 12 facilities, Brenmiller has established a high-profile reference case that could catalyze adoption across multiple industries.

The business model innovation is particularly noteworthy - the HaaS approach eliminates upfront capital requirements for customers while creating recurring revenue streams for Brenmiller. This model, combined with the additional grid balancing revenue potential, creates a compelling financial structure that could accelerate market penetration.

Given the EU's aggressive decarbonization targets and rising energy costs, this solution addresses two critical market needs: cost reduction and emissions compliance. The project's ability to reduce gas consumption by 25-30% aligns perfectly with PPF's goal of 42% emissions reduction by 2030, demonstrating the technology's role in achieving corporate sustainability targets.

• Moves ahead with 12-year Heat as a Service (“HaaS”) agreement with Partner in Pet Food Hungaria KFT (“PPF”), one of Europe’s leading private label pet food producers
  
  
  
  
• Brenmiller to build, own, and operate a bGen™ ZERO thermal energy storage (“TES”) system adjacent to PPF’s factory in Dombovar, Hungary, and provide PPF with electric steam at a fixed price, which is expected to allow the pet food manufacturer to use 25-30% less gas, lowering its energy costs and carbon footprint

TEL AVIV, Israel--(BUSINESS WIRE)-- Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy” or the “Company”) (Nasdaq: BNRG), a leading global energy provider of TES solutions to industrial and utility markets, today announced that Brenmiller Europe S.L. ("Brenmiller Europe"), its joint venture with renewable energy developers Green Enesys and Viridi RE, has established a wholly-owned special purpose vehicle (“SPV”) subsidiary in Hungary, called Bren-Dom-TES Kft. The local entity recently executed agreements to secure an option to acquire the land adjacent to PPF’s factory.

The 10,000+ square meter plot is where Brenmiller Europe plans to build a 30 MWh bGen™ ZERO TES system, which will take precedence over PPF’s fossil fuel boilers. It will charge using electricity from the local grid, and Brenmiller Europe will deliver electric steam to PPF through a HaaS agreement. Transitioning from traditional combustion practices to Brenmiller’s TES system is expected to allow PPF to reduce its gas consumption by 25-30%, significantly lowering energy costs and its carbon footprint. When the bGen™ is operational, Brenmiller Europe will be in a position to earn additional recurring revenue streams by providing grid balancing services to the local transmission system operator.

“We believe that our local operation in Hungary unlocks critical project-based financing, enabling us to meet our customer commitments on time while helping fast-track this European clean industry initiative,” said Avi Brenmiller, Chairman and Chief Executive Officer. “Our TES project for PPF is among the first commercial projects of its kind and serves as a model for scaling our technology worldwide.”

Approximately 50% of Brenmiller’s $440 million global pipeline of commercial opportunities originates in Europe, spanning nine industries across eleven European countries. The Company delivers its solutions through multiple flexible business models, including direct technology sales and HaaS. The latter lowers electrification costs for industrial customers and will potentially allow Brenmiller to capture additional recurring revenues through participation in local electricity market programs.

PPF produces more than 700,000 tons of pet food per year, which is distributed from its 12 production facilities to over 400 retailers across more than 35 European countries. Brenmiller’s arrangement with PPF will help the company achieve its emissions reduction targets of 42% by the end of 2030.

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.

About Brenmiller Europe, S.L.

Brenmiller Europe is a joint venture between Brenmiller Energy, Viridi RE, and Green Enesys aimed at accelerating the adoption of the innovative bGen™ thermal energy storage technology across Europe. This partnership combines Brenmiller's cutting-edge technology with the renewable energy expertise of European project developers Viridi RE and Green Enesys, who bring an 18-year proven track record in developing, funding, and building over 100 renewable energy projects. For more information, visit Green Enesys and Viridi.

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 acquiring a land that is more than 10,000 square meter adjacent to PPF’s factory; Brenmiller Europe’s future plans to build a 30 MWh bGen™ ZERO TES system, which will take precedence over PPF’s fossil fuel boilers; PPF’s future reduced gas consumption following the operationalization of bGen™; that Brenmiller Europe will be in a position to earn additional recurring revenue streams by providing grid balancing services to the local transmission system operator; that the local operation in Hungary unlocks critical project-based financing, enabling the Company to meet its customer commitments on time; and the Company’s $440 million global pipeline of commercial opportunities. 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, 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/20250121103460/en/

Media:

Tori Bentkover

brenmillerenergy@antennagroup.com

Source: Brenmiller Energy Ltd.

FAQ

What milestone did Brenmiller Energy achieve in Hungary?

Brenmiller Energy secured land for a 30 MWh thermal energy storage project adjacent to PPF's factory in Dombovar, Hungary.

How will the Brenmiller TES system benefit PPF?

The TES system will reduce PPF’s gas consumption by 25-30%, lower energy costs, and decrease its carbon footprint.

What is the duration of the HaaS agreement between Brenmiller and PPF?

The Heat as a Service (HaaS) agreement between Brenmiller and PPF is for 12 years.

How much of Brenmiller's global pipeline is in Europe?

Approximately 50% of Brenmiller’s $440 million global pipeline is in Europe.

What additional revenue opportunities does Brenmiller expect from the TES project?

Brenmiller expects additional recurring revenue from providing grid balancing services to the local transmission system operator.

What are PPF’s emissions reduction targets supported by Brenmiller's TES system?

PPF aims to reduce its emissions by 42% by the end of 2030.