Brenmiller Reports Operational Update and 2023 Full Year Financial Results
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Insights
Brenmiller Energy Ltd.'s financial results and operational updates indicate a strategic expansion with the opening of a gigafactory and the launch of bGen™ ZERO. The company's focus on small-to-medium electricity-to-heat projects and transition to larger projects as revenues grow shows a scalable business model. The emphasis on grant-backed projects is a prudent approach to improve margins and returns. The reported decrease in net loss and cash used in operating activities suggests improved financial health, which may be attractive to investors. However, the net decrease in cash and cash equivalents raises questions about the company's liquidity and cash burn rate, which must be monitored closely. The fundraising activities, including management participation, may reflect confidence in the company's direction, but the reliance on future fundraising to sustain operations could be a concern.
Brenmiller's strategic partnerships and joint ventures, particularly in Europe and India, position the company to capture a share of the growing renewable energy and thermal energy storage markets. The collaboration with entities like the New York Power Authority and Heineken's subsidiary Tempo Beverages Ltd. demonstrates the company's ability to secure high-profile clients and projects. The EaaS business model is an innovative approach to generating recurring revenue, which could lead to more stable cash flows. However, the competitive landscape of the TES market and the execution risks associated with expanding operations internationally should be considered when evaluating the company's growth prospects.
The launch of bGen™ ZERO and the establishment of a gigafactory in Israel reflect Brenmiller Energy's commitment to innovation and capacity expansion in the thermal energy storage sector. The focus on reducing carbon footprints and providing cost savings for customers aligns with global decarbonization efforts and could increase demand for the company's products. The planned expansion into the U.S. and European markets and the development of a global network of JV partnerships, are strategic moves that could facilitate market penetration and enhance the company's competitive edge. However, the long-term success of these initiatives depends on the company's ability to maintain technological advantages and manage the complexities of international market dynamics.
- Commercial sales included two major milestone projects, more expected in 2024
-
Launched bGen™ ZERO and opened gigafactory in
Israel to support potential sales of up to$200M -
Plans for additional plants to open 2027-2028 based on anticipated growth in the
U.S. andEurope - Plans to establish a global network of JV partnerships
ROSH HA’AYIN,
Management Commentary
“Brenmiller had a strong year in 2023, finalizing key commercial agreements that will generate recurring revenue streams for the company while reducing costs and carbon footprint for our customers. We’re excited to carry this momentum forward in 2024, as we anticipate revenue growth through several channels, including direct sales, local developer partnerships, and distributor collaborations,” stated Brenmiller’s Chairman and CEO, Avi Brenmiller.
“Our current focus is small-to-medium sized electricity-to-heat projects in the range of
“In 2023, we inaugurated our new facility in
“During the last year, we aggressively pursued business development and invested in our new gigafactory, while being very prudent with cash management. Our cash used in operating activities and our net loss both narrowed. We will continue to optimize operational and cash efficiencies while pursuing increased revenues. We believe we have the best thermal energy storage solution in a massive global market that is recognizing storage is the key link to achieving net zero emissions.”
Projects to Generate Recurring Revenues, Deliver Customer Savings & Reduce Carbon Footprint
-
Successfully handed over first bGen™ system in the
U.S. to State University ofNew York (SUNY): On February 6, 2024, Brenmiller completed all required system tests and operator training for its first bGen™ installation in theU.S. and handed the system over to a SUNY campus. bGen™ is expected to eliminate approximately 550 metric tons of greenhouse gas emissions for SUNY annually. The project was developed and deployed in partnership with the New York Power Authority, the largest state power organization in theU.S. , and financed in part by a grant from theIsrael -U.S. Binational Industrial Research and Development (BIRD) Foundation. -
agreement to supply clean electric heat to Wolfson Hospital: On February 1, 2024, Brenmiller signed a 7-year definitive agreement for a$3.55 million project to supply electric process heat to Wolfson Hospital, a public medical center located near$3.55 million Tel Aviv , in Holon,Israel . Brenmiller will generate recurring revenues on an energy-as-a-service (EaaS) model. The project benefits from a grant of up to from the Israel Innovation Authority. bGen™ ZERO will replace Wolfson Hospital’s old diesel boilers that are both costly and polluting. bGen™ ZERO has the potential to save Wolfson Hospital up to$450,000 annually and reduce the hospital’s local carbon footprint by 3,900 tons per year, according to the Israeli Ministry of Finance.$1.3 million -
EaaS project with Tempo (Heineken) to be completed in 2025, estimated to save
with 32MWh TES system: On October 11, 2023, Brenmiller signed a contract with Tempo Beverages Ltd., partially owned by Heineken International B.V., one of Israel’s largest producers and distributors of beverages. bGen™ ZERO will replace Tempo’s heavy fuel oil boilers at its plant in Netanya,$7.5 million Israel , and produce sustainable process steam using solar photovoltaic (“PV”) energy and off-peak grid power when electricity rates are most affordable. Brenmiller estimates this will save Tempo over 15 years, eliminate the use of approximately 2,000 tons of heavy fuel oil annually, and mitigate over 6,200 tons of carbon emissions each year. The project, which benefits from a grant of approximately$7.5 million from the Israeli Ministry of Environmental Protection and is expected to be completed by the end of the first half of 2025.$595,000
Accelerating growth by the planned establishment of a global network of JVs with local developers and working with distributers
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Plans to ramp sales across
Europe through a new joint venture with Green Enesys and Viridi: On August 23, 2023, Brenmiller signed a term sheet with European renewable energy developers Green Enesys and Viridi to establish a new joint venture inSpain . The new entity will deliver Brenmiller’s products, including the bGen™ and bGen™ ZERO, through an EaaS business model, beginning inSpain ,Germany , andFrance . -
MoU with Green Enesys and Viridi to develop new-build hydrogen and e-methanol projects in
Europe : Brenmiller signed a non-binding memorandum of understanding ("MoU") with SolWinHy Cádiz S.L, a special purpose company jointly owned by Green Enesys Group and Viridi RE, on December 13, 2023, to develop new-build hydrogen and e-methanol projects. As part of the MoU, bGen™ has been selected as the preferred solution for theSpain -based Cadiz project which is designed to produce 29,000 tons of green e-methanol annually and is expected to provide energy storage for wind and solar powered facilities producing 220 MW of electricity completely off-grid. -
MoU with India’s largest solar panel manufacturer Waaree Energies to deploy thermal energy storage projects in
India : Under the terms of the MoU signed on July 26, 2023, Brenmiller and Waaree will jointly explore, develop, and deploy solar-powered TES systems inIndia , subject to entry into a definitive agreement. Solar-powered bGen™ thermal energy storage systems can helpIndia meet its goal of transitioning to a50% renewable energy supply by 2030. -
Plans to boost commercial traction in
U.S. through a distribution agreement with RSP Systems: On January 11, 2024, Brenmiller signed a non-binding MoU withNew York -based RSP Systems for a distribution agreement. Subject to negotiating and execution of definitive agreements, RSP Systems would be the exclusive distributor of bGen™ in theU.S. Northeast Region. RSP Systems has prior experience working with Brenmiller on its first project in theU.S. , combining Brenmiller’s TES with a Capstone turbine to reduce greenhouse gas emissions and create monetary savings.
Awards
- TIME’s Best Inventions of 2023 named bGen™ as one of the best inventions of the year in the Green Energy category.
- Bloomberg selected Brenmiller as a 2024 BNEF Pioneers Finalist for being an innovative industrial decarbonization company that has a technology to overcome the key challenges to achieving net-zero.
Research and Development
Research and development expenses, net for the year ended December 31, 2023, decreased by
This decrease of research and development expenses was offset by a decrease of
The Company expects research and development will not change significantly as it continues to develop storage units and bGen™ technology.
The following table discloses the breakdown of net research and development expenses for the year ended December 31, 2023 and 2022:
|
|
Year Ended
|
||||
Dollars in thousands |
|
2023 |
|
2022 |
||
|
|
|
||||
Salary and related expenses |
|
$ |
2,268 |
|
$ |
2,656 |
Consultants and subcontractors |
|
|
388 |
|
|
441 |
Expenditure on materials |
|
|
70 |
|
|
1,020 |
Depreciation and other |
|
|
104 |
|
|
486 |
Office maintenance |
|
|
440 |
|
|
367 |
|
|
|
3,270 |
|
|
4,970 |
Less – grants |
|
|
(92) |
|
|
(275) |
Total |
|
$ |
3,178 |
|
$ |
4,695 |
Balance Sheet Update
As of December 31, 2023, Brenmiller had cash and cash equivalents of
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 delivers scalable thermal energy storage solutions and services that allow customers to cost-effectively decarbonize their operations. Its patented bGen™ thermal storage technology enables the use of renewable energy resources, as well as waste heat, to heat crushed rocks to very high temperatures. They can then store this heat for minutes, hours, or even days before using it for industrial and power generation processes. With bGen™, organizations have a way to use electricity, biomass and waste heat to generate the clean steam, hot water and hot air they need to mold plastic, process food and beverages, produce paper, manufacture chemicals and pharmaceuticals or drive steam turbines without burning fossil fuels. 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: future revenue streams for the company while reducing costs and carbon footprint for the Company’s customers; achieving revenue growth through several channels, including direct sales, local developer partnerships, and distributor collaborations; expanding to larger projects in the near term as revenues grow; grant and tax incentive plans in
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Media:
Tori Bentkover
brenmillerenergy@antennagroup.com
Source: Brenmiller Energy Ltd.
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