Brenmiller Energy Reports Third Quarter Operational Update and Financial Results
November 23, 2022 at 17:17 PM EST
Completion of Current Thermal Energy Storage Projects Positions Brenmiller for Additional Orders in 2023
Brenmiller Energy Ltd. (“Brenmiller”, “Brenmiller Energy” or the “Company”) (TASE: BNRG, Nasdaq: BNRG), a clean-energy company that provides Thermal Energy Storage (“TES”) systems to the global industrial and utility markets, today announced financial results as of and for the nine and three months ended September 30, 2022, in addition to operational updates.
“Throughout 2022 Brenmiller has shown great progress towards its efforts to become one of the global leaders in thermal energy storage solutions for industrial and utility markets,” said Avi Brenmiller, Chairman and Chief Executive Officer of Brenmiller Energy. “We have completed installations and begun operations at multiple pilot projects around the world, establishing the Company as a formidable global player. I’m particularly excited about the inauguration of our first utility- scale project in Italy earlier this month, which marks the realization of several years of hard work and dedication by the entire Brenmiller team and our partners from the Enel Group and Enel Green Power. The project is a major milestone in our company’s history; we believe it will help showcase the benefits our technology has on reducing emissions and improving operating costs at a large-scale facility and give other global power producers the confidence they need to invest in our technology.”
“Looking forward, we continue to see strong demand for our thermal energy storage solution. Our bid pipeline is large and continuously growing, with Europe representing our best near-term opportunity for deployments as industrial organizations and utilities look to invest in sustainable solutions as a direct reaction to high energy prices and an increased need for energy security,” continued Brenmiller. “While we believe the demand outlook remains robust, we are being prudent with our cost structure in the near-term and are taking steps to ensure we remain in a healthy financial position as Brenmiller Energy continues to grow.”
New Project Awards
To date in 2022, Brenmiller has received commercial orders of USD $9 million, and as previously announced, is negotiating a energy-as-a-service] contract in Israel for approximately USD $5 million, driven by growing demand for thermal energy storage systems from industrial customers. The Company is marketing its bGen TES system globally, through direct equipment sales and through an energy-as-a-service (“EaaS”) model. Brenmiller has developed a large pipeline of opportunities for which it expects to pursue commercial agreements in 2023 and beyond. In the near-to-intermediate term, the majority of Brenmiller’s bid opportunities are in Europe, where high energy prices and concerns over energy security are driving incremental demand for non-traditional energy sources.
In September 2022, Brenmiller signed a Memorandum of Understanding (“MoU”) with Green Enesys Deutschland GmbH ("Green Enesys") and Viridi Energias Renovables Espana, S.L. ("Viridi RE"), two European based developers of green energy projects, to perform engineering studies for incorporating bGen TES for Green Enesys’ and Viridi REs’ proposed green hydrogen production facilities throughout Spain. Green Enesys and Viridi RE are currently developing three green hydrogen projects in Spain, with the goal of decarbonizing the European Union’s industrial, power generation and transportation sectors. The projects will have a combined capacity to produce over 100,000 tonnes of green methanol annually.
Project Updates and Summary of Current Operations
Brenmiller has made material progress installing various pilot projects in diverse regions worldwide in an effort to demonstrate the use of its technologies for both industrial and utility-scale applications. The Company expects investments made into these pilot projects will accelerate commercialization of its proprietary TES technology. The pilot projects have progressed as planned and are continuing to reach major milestones.
Dimona Israel Production Facility
On March 31, 2021, Brenmiller signed a €7.5 million credit facility with the EIB for the creation of an advanced production facility in Dimona, Israel. The Company made its first draw down on the first of two tranches of the credit facility for €4.0 million on July 28, 2022.
The production facility is currently under construction and will have the capacity to produce up to 4,000 MWh per year of bGen thermal storage modules. To date, the Company has ordered equipment totaling USD $2.0 million in connection with the expansion at this facility. The equipment has been delivered and the facility is expected to reach full production capacity by the end of 2023. This facility will be critical to Brenmiller’s ability to meet growing customer demand.
Research and Development
Research, development, and engineering expenses, net of government grants, were USD $3.47 million in the nine months ended September 30, 2022, compared to USD $2.71 million in the nine months ended September 30, 2021. The increase is primarily attributable to higher payroll costs as the Company has made additional hires to enhance its research and development team to support future growth.
Research, development, and engineering expenses, net breakdown:
Balance Sheet Update
As of September 30, 2022, Brenmiller had cash and equivalents of USD $9.5 million. On July 28, 2022, Brenmiller made the first draw of €4.0 million from its €7.5 million credit facility with the EIB.
About Brenmiller Energy
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 steam, hot water and hot air they need for a variety of applications, including, for example, 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 Twitter and LinkedIn.
Cautionary Note Regarding 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: its expected timeline for installing and completing its pilot projects and reaching other milestones; future pipeline projects and opportunities for which the Company expects to pursue commercial agreements; its plans to enter into a contract in Israel to supply energy as a service; steps the Company is taking to remain in a healthy financial position as the Company continues to grow; its belief regarding long-term demand for TES as companies invest to decarbonize their assets and improve overall energy efficiency; and the role that the Company’s Dimona production facility will play to support current and potential future projects. 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, capital expenditures and research, development and engineering expenses, 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 and trade, legal, social and economic risks and the risks associated with the adequacy of existing cash resources. 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 prospectus dated May 24, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”), 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.