Brenmiller Energy Stock Soars After Announcing Deal That Livens Projected $440 Million Pipeline

Brenmiller Energy Stock Soars After Announcing Deal That Livens Projected $440 Million Pipeline

Brenmiller Energy Ltd. (NASDAQ: BNRG) stock is higher by over 18% since last week’s start. And the better news from an investor perspective is that the gains may be the precursor to better trading days ahead. That’s a bullish assessment. However, it’s warranted, especially when considering that BNRG’s announcements fortify an already strong, evidence-based case that shows its game-changing thermal energy storage (TES) technology is penetrating large global markets, which, as important from an investor perspective, could begin the process of converting its projected $440 million business pipeline into bookable revenues. (*market data)

In other words, investors are right to be optimistic. Both deals emphasize the potential of Brenmiller’s thermal energy storage (TES) technology to redefine sustainable industrial energy creation and storage. The latest is a manufacturing and supply agreement with U.S.-based TUTCO Heating Solutions Group, a global leader in the supply of electric resistive heating elements, and a subsidiary of London-based Smiths Group (LSE: SMIN), a $7 billion (USD) company.

According to Brenmiller, TUTCO will design, manufacture, and supply essential components for its groundbreaking bGen™ ZERO TES systems, which use crushed rocks to transform electricity into storable, on-demand, carbon-free heat, steam, or hot air for industrial applications with 24/7 reliability and transparent production costs.

Video- Interview with Brenmiller Energy COO, Nir Brenmiller

The first bGen™ ZERO units are slated for delivery to prominent clients, including Tempo Beverages Ltd., Israel’s exclusive producer and distributor of Heineken and Pepsi products; Wolfson Hospital; and Partner in Pet Food Hungaria, a leading private-label pet food manufacturer in Europe.

Investor Interest Sends BNRG Shares Higher

Why are investors excited? Foremost, the agreement puts BNRG a giant step closer to delivering its first bGen™ ZERO units to prominent clients, including Tempo Beverages Ltd., Israel’s exclusive producer and distributor of Heineken and Pepsi products; Wolfson Hospital; and Partner in Pet Food Hungaria, a leading private-label pet food manufacturer in Europe. Said another way, the steepening of BNRG’s revenue curve may begin sooner rather than later. That’s not all supporting the bullish interest.

Savvy investors are likely viewing and valuing the agreement with TUTCO as more than a strategic partnership—they are rightfully acknowledging its tangible impact as a near-term value driver that accrues from combining TUTCO’s engineering expertise in resistive heating with its innovative TES technology to create a powerful synergy to generate successful outcomes related to global industrial decarbonization initiatives. This alliance is something else; it’s a win-win-win, mission-critical step toward a sustainable energy future.

For Brenmiller, the collaboration with TUTCO should enable them to scale production of its bGen™ ZERO systems and monetize its projected $440 million project pipeline more quickly. TUTCO wins by strengthening its leadership position in electrification technologies. And the planet wins with cleaner, carbon-free energy solutions that eliminate reliance on fossil fuels.

bGen™ ZERO Redfines Energy Storage

Making it happen is Brenmiller’s bGen™ ZERO system, which redefines energy storage by using crushed rocks to convert low-cost renewable electricity into storable, on-demand steam, hot air, or hot water. Just as important as providing energy when needed, the revolutionary system also replaces the need for fossil fuels to generate and store energy, a particularly attractive feature for energy-intensive industries such as food and beverage, pharmaceuticals, and chemical manufacturing. That distinction alone opens doors of opportunity for BNRG to serve nearly any company relying on industrial boilers.

However, eliminating reliance on fossil fuels is just one client benefit. Industrial clients are turning to bGen™ ZERO for other compelling reasons, including:

 

  • Carbon-Free Heat Solution: the bGen™ ZERO generates heat, steam, or hot air using renewable energy sources, ensuring zero carbon emissions during operation. Customers under increasing pressure to decarbonize appreciate that distinction because they get a reliable, environmentally friendly solution that aligns with corporate ESG goals and regulatory requirements.

  • Cost-Effectiveness: The bGen™ ZERO system stores heat in crushed rocks, which is significantly more affordable and durable than alternative storage systems. Customers like it because they canreduce dependency on volatile fossil fuel markets through a system offering stable and predictable costs.

  • 24/7 Operation: The bGen™ ZERO ensures stable heating conditions, providing continuous operation even when renewable energy sources fluctuate. Customers like it because the reliability of bGen™ ZERO mitigates the risk of production downtime, a critical factor for manufacturers in sectors like food and beverage, chemicals, and pharmaceuticals.

  • Scalability and Flexibility: The system can scale to meet the needs of small facilities or large industrial operations and discharge energy in the form of steam, hot water, or hot air, depending on customer requirements. This adaptability allows industries to customize the system to their energy needs, maximizing efficiency and utility.

  • Alignment with Green Energy Mandates: The bGen™ ZERO supports grid balancing and renewable energy integration, helping utilities and industrial clients meet carbon reduction targets. With governments imposing stricter emissions regulations, the bGen™ ZERO helps customers comply without sacrificing operational efficiency.

  • Heat-as-a-Service (HaaS) Model: Brenmiller offers the bGen™ technology through a HaaS model, enabling clients to pay for the heat they use rather than incurring significant upfront costs. This model reduces financial barriers, making it easier for companies to transition to clean energy solutions without a heavy capital investment.

  • Support for Hard-to-Electrify Industries: The bGen™ ZERO delivers high-temperature heat required by industries that are difficult to electrify, such as cement, steel, and petrochemicals. For sectors struggling to find clean alternatives, bGen™ ZERO fills a critical gap, making the decarbonization of complex processes feasible.

 

These distinctions do more than provide a means for BNRG industrial clients to solve critical clean-energy supply challenges- they substantiate the company’s bullish forecast. To ensure its ability to serve increased demand, Brenmiller expanded its state-of-the-art gigafactory in Dimona, Israel. This world’s first dedicated TES production facility is the linchpin enabling Brenmiller to convert its $440 million project pipeline into revenue streams.

Remember, too, that the agreement with TUTCO is just Brenmiller’s latest. The company previously announced a planned partnership with Germany-based Entelios AG to introduce its TES technology to one of Europe’s largest energy markets. That agreement will integrate Entelios’ grid optimization expertise with Brenmiller technology to help Germany meet ambitious decarbonization goals. It will also put the German market in play, projected to reach $2.9 billion by 2028.

Recognition Exposes Technology Advantages

Doubters beware: Brenmiller’s bGen™ technology is supported by a tailwind of reviewer accolades. It was named one of TIME‘s Best Inventions of 2023 for Green Energy and celebrated by the European Investment Bank and BloombergNEF, each recognizing the bGen™ system technology as a groundbreaking enabler for generating clean energy. These honors validate Brenmiller’s innovation and, as importantly, support its emergence as a leader in the TES market.

They also highlight Brenmiller’s uncompromising commitment to ESG principles and its ability to deliver scalable, sustainable energy solutions. Those distinctions are more than resume enhancements; they have helped pave the way for Brenmiller to become a significant force in the global clean energy transition. With an expanded production gigafactory, groundbreaking bGen™ technology, and strategic partnerships, they are indeed traveling toward that outcome.

 

 

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