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