- Launched next-generation bGen ZERO™ for Renewable Power-to-Heat
and Industrial Decarbonization, Unlocking New Revenue Streams
- Inaugurated Gigafactory in Dimona, Israel with Expected 4 GWh
of bGen ZERO™ Capacity by Q4 2023
- Signed MoU with India’s Largest Solar Panel Manufacturer and a
Term Sheet with a Leading Global Clean Energy Utility to
Decarbonize Heat and Energy Production Worldwide
- Approved for $610,000 Grant from Israeli Ministry of
Environmental Protection for Clean Energy Project at one of
Israel’s Largest Beverage Plants
Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy”)
(Nasdaq: BNRG; TASE: BNRG), a global leader in thermal energy
storage (“TES”), today announced financial results as of and for
the six months ended June 30, 2023, in addition to operational and
recent business development updates.
Management Commentary
“Our newly launched bGen ZERO provides, in our opinion, the most
cost-effective and efficient way to electrify heat and decarbonize
the industrial and power sectors. Decarbonization of heat is the
low hanging fruit of fighting climate change, as heat is the
largest energy end-use,” stated Avi Brenmiller, Chairman and Chief
Executive Officer of Brenmiller Energy. “These are the reasons
driving intense interest in bGen, as evidenced in our system
installations to date and the recent agreements we’ve signed with
some of the world’s leading renewable energy companies.”
“By focusing on power-to-heat, we have opened the potential for
new revenue streams through direct sales as well as providing
energy-as-a-service to industrial operators and grid services. Our
project pipeline continues to grow and remains focused on Europe
and the U.S., with additional strong prospects in South America and
South Asia.”
Brenmiller’s recent webinar unveiling bGen ZERO and its business
focus on power-to-heat is available on the Company’s website.
New Projects
- MoU Signed with Waaree Energies, the Largest Solar Panel
Manufacturer in India: Brenmiller signed a Memorandum of
Understanding ("MoU") with Waaree Energies Ltd. ("Waaree"), India’s
largest manufacturer of solar panels, to implement bGen™ and bGen
ZERO™ TES in India. Brenmiller and Waaree will jointly explore,
develop, and deploy solar-powered TES systems in India, subject to
entry into a definitive agreement. Solar-powered bGen aims to help
India, the world’s fifth largest economy, transition to a 50%
renewable energy supply by 2030.
- Term Sheet Signed with Leading Global Clean Energy Utility
to Decarbonize Heat & Energy Production Worldwide:
Brenmiller signed a non-binding Term Sheet with one of the largest
producers of clean energy in the world and Green Enesys Group
toward a definitive agreement to jointly identify, build, and
accelerate electrification by using renewable energies and
Brenmiller’s bGen ZERO TES systems to electrify heat and achieve
full decarbonization for the Utility’s clients. As of the signing
of the Term Sheet, 9 potential clean energy projects with a total
of approximately 2 GWh capacity have been identified.
- $610,000 Grant Approved for Clean Energy Production for One
of Israel’s Largest Beverage Producers: Brenmiller received
approval from the Israeli Ministry of Environmental Protection for
a NIS 2.2 million (approximately $610,000) grant, conditional on
the build and installation of its industry-leading bGen ZERO TES
system at a beverage plant owned and operated by one of Israel’s
largest beverage companies. The approved grant is to fund the clean
energy project outlined in a Memorandum of Understanding ("MOU")
between Brenmiller and the beverage company. Through the proposed
Energy as a Service (EaaS) joint venture Brenmiller’s bGen ZERO is
to provide clean steam, replacing the fossil fuel-based steam
boilers that currently power the beverage plant. The TES project is
expected to have a capacity of 35 MWh and a maximum capacity of 14
tons of steam per hour.
Dimona Israel Production Facility to Manufacture bGen
and bGen ZERO: World’s First Gigafactory for Thermal Energy
Storage
Brenmiller inaugurated its TES gigafactory in Dimona, Israel on
May 2, 2023 and to the Company’s knowledge, it is the world’s first
TES gigafactory. The new facility serves as Brenmiller’s primary
manufacturing hub for its bGen and next-generation bGen ZERO with
production lines expected to be operational by the end of 2023 with
a planned ramp-up of the Company's production line during 2024
reaching a capacity of up to 4 GWh of TES modules annually. The
production facility is financed with non-dilutive funding by the
European Investment Bank (EIB) through facility agreement.
Brenmiller’s Ordinary Shares to Trade Exclusively on Nasdaq
as of September 11, 2023
As previously announced, Brenmiller is voluntarily delisting its
securities from the Tel Aviv Stock Exchange ("TASE") effective
September 11, 2023.
Research, Development and Engineering Expenses, Net
Research, development, and engineering expenses, net of
government grants, were $1.67 million in the six months ended June
30, 2023, compared to $2.47 million in the six months ended June
30, 2022.
The 33% decrease was primarily attributable to a decrease of
$0.19 million in payroll and related expenses, a decrease of $0.33
million in raw materials used in research and development projects,
a decrease of $0.15 million in consultants and subcontractors and a
decrease of $0.30 million in depreciation and other expenses in the
six months ended June 30, 2023, compared to the six months ended
June 30, 2022. This decrease was offset by a net decrease of $0.17
million in government grants received in the six months ended June
30, 2023, compared to the six months ended June 30, 2022.
The Company expects research, development, and engineering
expenses will remain similar to those during the period ended June
30, 2023.
Research, development, and engineering expenses, net
breakdown:
Six months ended
June 30, 2023
2023
2022
USD in thousands (unaudited)
Total research, development, and
engineering expenses
1,758
2,730
Less – grants
(94)
(263)
Research, development and engineering
expenses, net
1,664
2,467
Balance Sheet Update
As of June 30, 2023, Brenmiller had cash and cash equivalents of
$6.74 million, a net increase of $0.2 million from $6.51 million on
December 31, 2022. This is attributable primarily to net proceeds
of approximately $6.0 million received from a private placement
with aggregate gross proceeds of $2.5 million in June and the
issuance of ordinary shares and warrants under a private placement
investment in February 2023 for gross proceeds of $3.6 million
which included participation from Brenmiller management, offset by
net cash used in operating activities of $3.0 million and an
additional $2.1 million used in connection with the Company’s
Dimona production facility.
About Brenmiller Energy Ltd.
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 clean steam, hot water and hot air they
need 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.
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 and Israeli
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: that its bGen™ TES production lines are
expected to be operational by the end of 2023 with a planned
ramp-up during 2024 to reach capacity of up to 4 GWh of TES modules
annually; its strategic partnerships and collaborations; the
potential for the utility company to become a strategic investor
for a minority stake in Brenmiller; its plan to build and install
its industry-leading bGen™ TES at a beverage plant owned and
operated by one of Israel’s largest beverage companies; its planned
delisting from the TASE; its potential pipeline of additional
projects; and its expectation that its research, development, and
engineering expenses will remain similar to those during the period
ended June 30, 2023. 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, 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 Annual
Report on Form 20-F for the year ended December 31, 2022 filed with
the SEC on March 21, 2023, 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.
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
June 30,
December 31,
2023
2022
(Unaudited)
(Audited)
Assets
USD in thousands
CURRENT ASSETS:
Cash and cash equivalents
6,360
6,135
Restricted deposits
34
34
Trade receivables
1,004
657
Other receivables
518
584
Inventory
596
935
Assets held for sale (Rotem1)
228
240
TOTAL CURRENT ASSETS
8,740
8,585
NON-CURRENT ASSETS:
Cash and cash equivalent – long term
380
373
Restricted deposits
82
85
Right-of-use assets, net
1,262
1,462
Property, plant and equipment:
Plant and equipment, net
3,830
1,193
Advances to equipment supplier
-
685
Total property, plant and equipment
3,830
1,878
TOTAL NON-CURRENT ASSETS
5,554
3,798
TOTAL ASSETS
14,294
12,383
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade payables
556
246
Deferred revenues
379
418
Other payables
918
1,114
Provisions
-
8
Current maturities of liabilities for
royalties
356
260
Current maturities of lease
liabilities
622
606
TOTAL CURRENT LIABILITIES
2,831
2,652
NON-CURRENT LIABILITIES
European Investment Bank ("EIB") loan
4,068
3,965
Lease liabilities
738
959
Liability for royalties
1,792
2,143
TOTAL NON-CURRENT LIABILITIES
6,598
7,067
TOTAL LIABILITIES
9,429
9,719
EQUITY :
Share capital
119
88
Share premium
57,189
52,502
Receipts on account of warrants
3,807
1,487
Capital reserve from transactions with
controlling shareholders
54,061
54,061
Capital reserve on share based
payments
3,498
2,861
Foreign currency cumulative translation
reserve
(1,912)
(1,582)
Accumulated deficit
(111,897)
(106,753)
TOTAL EQUITY
4,865
2,664
TOTAL LIABILITIES AND EQUITY
14,294
12,383
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
Six months ended
June 30
2023
2022
USD in thousands
(except per share
data)
REVENUES:
LICENSING FEE
-
1,500
OTHER ENGINEERING
SERVICES
580
20
580
1,520
COSTS AND EXPENSES:
COST OF REVENUES
(1,132)
(883)
RESEARCH, DEVELOPMENT AND
ENGINEERING EXPENSES, NET
(1,664)
(2,467)
MARKETING AND PROJECT
PROMOTION EXPENSES
(683)
(612)
GENERAL AND ADMINISTRATIVE
EXPENSES
(2,398)
(2,328)
SHARE IN LOSS OF JOINT
VENTURE
-
(29)
OTHER INCOME, NET
2
38
OPERATING LOSS
(5,295)
(4,761)
FINANCIAL INCOME
270
964
FINANCIAL EXPENSES
(119)
(154)
FINANCIAL INCOME, NET
151
810
LOSS FOR THE PERIOD
(5,144)
(3,951)
OTHER COMPREHENSIVE LOSS –
ITEM THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS – EXCHANGE
DIFFERENCES ON TRANSLATION TO PRESENTATION CURRENCY
(330)
(622)
COMPREHENSIVE LOSS FOR THE
PERIOD
(5,474)
(4,573)
LOSS PER ORDINARY SHARE (in
Dollars) -
Basic and fully diluted loss
(0.29)
(0.28)
Weighted average number of shares
outstanding used in the computation of basic and diluted loss per
share
17,498,762
14,018,290
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230811110164/en/
Media: Tori Bentkover
brenmillerenergy@antennagroup.com
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