Brenmiller Energy Highlights McKinsey Analysis Pointing to a Potential 16 Billion Euro European Market Opportunity for Thermal Energy Storage

New Analysis Suggests Industrial Heat Electrification Economics May Improve Meaningfully, With Projected Returns Potentially Exceeding Typical Industrial Hurdle Rates Across Europe by 2030

Rosh Ha'Ayin, Israel--(Newsfile Corp. - March 20, 2026) - Brenmiller Energy Ltd. (NASDAQ:BNRG) ("Brenmiller", "Brenmiller Energy" or the "Company"), a provider of integrated power and heat solutions for industrial and utility customers built around its proprietary thermal energy storage ("TES") technology, today highlighted the rapidly expanding market opportunity for industrial heat electrification in Europe following the release of a March 13, 2026 McKinsey & Company blog of Industrial heat electrification in Europe: New business models emerge, that underscores the improving economics and strong growth potential of TES systems.

The report identifies industrial heat as one of the largest energy consumption segments globally, accounting for nearly two-thirds of total industrial energy use. While electrification of industrial heat has long been technically feasible, economic barriers such as high upfront capital costs and electricity pricing dynamics historically slowed adoption. Today, evolving energy market conditions across Europe, including recent spikes in natural gas prices, heightened price volatility and supply uncertainty driven in part by ongoing geopolitical instability, are improving the economics of electrified heat and creating a compelling opportunity for TES systems that store low-cost electricity and convert it into industrial heat when needed.

According to McKinsey's analysis, internal rates of return for eight-hour TES systems of more than 15% are achievable in most countries assessed by 2030, placing these investments within or above typical industrial hurdle rates. The report also estimates that TES capacity in Europe could grow from less than 0.5 gigawatt-hours today to more than 200 gigawatt-hours by 2035, representing an approximately €16 billion cumulative capital investment opportunity over time as industrial companies increasingly seek cost-effective solutions to decarbonize heat production while maintaining energy reliability.

Brenmiller's patented bGen TES technology converts electricity into stored thermal energy using crushed rock as a storage medium and delivers high-temperature steam or hot air on demand for industrial processes, enabling customers to store renewable and low-cost electricity and use it later for heat production. The Company's systems help industrial operators reduce both energy costs and emissions, and Brenmiller is actively advancing projects and collaborations across Europe as industries increasingly seek solutions to electrify heat and reduce reliance on fossil fuels.

"The McKinsey report highlights what we believe is one of the most significant emerging opportunities in the global energy transition," said Avi Brenmiller, Chairman and Chief Executive Officer of Brenmiller Energy. "Industrial heat represents one of the largest remaining decarbonization challenges, and we believe that TES provides a scalable solution that allows industrial companies to replace fossil fuel-based heat with electricity."

"Based on McKinsey's analysis, Europe is rapidly becoming one of the most attractive markets in the world for TES," Mr. Brenmiller continued. "With our commercially proven bGen technology, expanding manufacturing capabilities and growing project pipeline of potential commercial opportunities, we believe Brenmiller is well positioned to capture a meaningful share of this multi-billion-euro market opportunity."

About Brenmiller Energy Ltd.

Brenmiller Energy (NASDAQ:BNRG) provides thermal energy storage solutions that enable industrial and utility customers to decarbonize heat, improve energy flexibility, and integrate renewable electricity. The Company's bGen systems convert electricity into dispatchable industrial heat, supporting electrification and emissions reduction across a range of applications.

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 when discussing: the projected market opportunity for TES systems, expected returns and adoption trends for industrial heat electrification, the anticipated growth of the European TES market, the Company's ability to expand its manufacturing capabilities and pipeline of potential commercial opportunities, and the Company's ability to capture future commercial opportunities in Europe and other markets. 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 important 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 the Company's 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 U.S. Securities and Exchange Commission ("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.

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