ROSH HA'AYIN, Israel - Brenmiller Energy Ltd. (NASDAQ:BNRG), known for its thermal energy storage solutions, has announced significant developments in its operations and strategic partnerships, according to a shareholder update from CEO Avi Brenmiller. The company has deployed and is developing a total of 73 MWh of its bGen™ thermal energy storage (TES) systems globally.
The firm has recently unveiled a Heat as a Service (HaaS) business model aimed at accelerating the adoption of zero-emission heat for industrial power users. This model allows Brenmiller Energy to maintain ownership of the bGen™ systems installed at customer sites, mitigating capital expenditure costs and risks for clients while providing renewable energy at a fixed discounted rate.
Brenmiller Energy has also highlighted a robust project pipeline with a potential of 49 projects across 13 countries, estimated to be worth approximately $500 million in potential sales. This expansion is supported by strategic partnerships in key regions such as Europe, the United States, India, and Canada, where partner companies will take on project development, finance, construction, and operation.
Among the notable projects is the collaboration with Tempo Beverages Ltd. in Israel, where Brenmiller's bGen™ system is now in the construction phase. This initiative is emblematic of the increasing interest from major corporations in TES solutions as competitive alternatives to natural gas.
To support its growth, Brenmiller Energy has raised approximately $8.5 million in gross proceeds through equity capital this year. The company's gigafactory in Israel is a central hub for manufacturing key components for its TES systems, catering to the growing demand.
Brenmiller Energy's bGen™ system has been recognized for its innovative approach to converting electricity into heat using crushed rocks to store energy, which can later be discharged as steam, hot water, or hot air according to customer needs. The technology was named among TIME's Best Inventions of 2023 in the Green Energy category.
This update is based on a press release statement and contains forward-looking statements regarding the company's future demand, sales potential, and the impact of its HaaS business model. While the company is optimistic about these prospects, it acknowledges that various factors could influence actual outcomes.
In other recent news, Brenmiller Energy Ltd. has reached a significant milestone by signing a $150 million exclusive distribution agreement with Rock Energy Storage, LLC. This deal is part of the company's broader strategy to implement a $500 million project pipeline aimed at accelerating the deployment of its energy storage solutions. The agreement encompasses states such as Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York.
In addition, Brenmiller Energy's project pipeline has expanded to include 49 potential contracts valued at over $500 million. These projects aim to deliver more than 6,000 MWh of zero-emission heat through the company's bGen™ ZERO thermal energy storage (TES) systems across multiple countries including the United States, Spain, Hungary, Israel, and India.
The company has also reported strategic advancements and financial results for the year ended December 31, 2023, showing a decrease in net research and development expenses by 32% to $3,178,000. Brenmiller Energy has also entered into a memorandum of understanding (MoU) with Waaree Energies and RSP Systems to expand its presence globally. These recent developments highlight Brenmiller Energy's commitment to its growth strategy and its focus on sustainable energy solutions.
InvestingPro Insights
Brenmiller Energy Ltd. (NASDAQ:BNRG) is navigating a challenging financial landscape as the company strives to revolutionize the thermal energy storage market with its bGen™ systems. Despite the potential for sales growth anticipated by analysts, InvestingPro Tips indicate that BNRG may have difficulty making interest payments on its debt and is rapidly depleting its cash reserves. Additionally, the company's stock has been identified as having high price volatility and weak gross profit margins, which could signal caution for potential investors.
The real-time financial health of Brenmiller Energy can be quantified by examining key InvestingPro Data metrics. With a market capitalization of just $2.44 million USD and a negative price-to-earnings (P/E) ratio of -0.25 for the last twelve months as of Q4 2023, the company's valuation challenges are evident. Moreover, the gross profit margin stands at a concerning -150.4%, underscoring the company's struggles to turn its innovative technology into profitable operations.
On a positive note, InvestingPro Tips also reveal that Brenmiller Energy's liquid assets exceed its short-term obligations, providing some financial flexibility in the near term. The stock is also trading near its 52-week low, which may attract investors looking for a potential turnaround story in the %INDUSTRY% industry. For those considering an investment in BNRG, there are over 19 additional InvestingPro Tips available, offering deeper insights into the company's performance and market position.
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