Brenmiller Reports First Half 2024 Financial Results: Upcoming Catalysts Include Potential Milestones on Project Pipeline Representing Up-To $500 Million in Potential Value
-- Brenmiller entered a definitive agreement for a $1.05 million private
placement priced at a 52% premium to market on August 2, 2024, with an
existing institutional shareholder which will have the right to make a
further investment an additional 1 million shares, in the event the
Company's ordinary shares close at or above $2.50 per share within the
next 12 months
-- Projects currently in development and construction phases are expected
to produce multiple recurring revenue streams
-- Expanding bGen$(TM)$ into new application for cooling AI data centers
with the development of a Cold Thermal Energy Storage solution, the
bGen(TM) Cool
ROSH HAâ tmAYIN, Israel--(BUSINESS WIRE)--August 29, 2024--
Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy" or the "Company") (Nasdaq: BNRG), a leading global provider of thermal energy storage ("TES") solutions for industrial and utility markets, today reported financial results as of and for the six months ended June 30, 2024, in addition to operational and recent business development updates.
Management Commentary
"Our pioneering bGen(TM) thermal battery continues to support the growing and mostly unmet need for on-demand access to sustainable heat. We have built an impressive project pipeline, potentially worth up to $500 million in value, and our team is working tirelessly, day in and day out, to move this pipeline forward so that we can start delivering meaningful cost savings and emissions reductions for our customers as well as recurring revenues for our company and value for our shareholders," said Brenmiller Chairman and Chief Executive Officer, Avi Brenmiller, "Among the proposals in our pipelines, several include negotiations with some of the world's largest producers of consumer goods, including Fortune 500s. All of our potential contracts are in geographic markets with robust manufacturing sectors and where established regulations make our technology feasible and cost-competitive--or cheaper--with fossil fuels."
"In an exciting new development, our team is exploring ways to expand our technology's capabilities to deliver cold thermal energy storage ("CTES") for artificial intelligence ("AI") data centers. The rapid growth of AI computing and the funding-rich ecosystem around AI applications has created downstream decarbonization and financial opportunities that we believe can be met using CTES. We anticipate minimal investment is needed to adapt our bGen(TM) thermal battery for data center applications."
"As we continue executing our current projects and increasing worldwide distribution through local partnerships, we expect our gigafactory to be fully operational by the end of 2024, with capacity to produce up to 4 GWh of bGen(TM) systems annually. We are very optimistic about market demand for our bGen(TM) TES technology and our ability to deliver throughout the remainder of 2024 and into the future."
First Half 2024 and Recent Operational and Business Developments
HaaS Recurring Revenue Projects to Deliver Customer Savings and Reduce Greenhouse Gas Emissions
-- Brenmiller to build, own and operate a 30 MWh bGen(TM) ZERO system for
one of Europe's largest pet food manufacturers: On August 19, 2024,
Brenmiller entered a 12-year Heat as a Service ("HaaS") agreement with
Partner in Pet Food Hungaria KFT ("PPF"), one of Europe's leading private
label pet food producers. Brenmiller will deliver low-cost and low-carbon
steam to PPF and be in a position to offer grid balancing services to the
local transmission system operator. This is the first project through
which Brenmiller will generate revenues from both selling heat as a
service and offering balancing services to the local grid. Brenmiller's
bGen(TM) ZERO will take priority over PPF's existing fossil fuel boilers,
lowering the pet food manufacturer's energy costs and carbon footprint by
reducing gas use at its Hungarian factory by 25-30%. PPF will purchase
steam from Brenmiller at a fixed rate.
-- bGen(TM) ZERO installation moves into construction phase at
Heineken-backed beverage manufacturing plant for project estimated to
save $7.5 million: Brenmiller will replace fossil fuel boilers with a 32
MWh bGen(TM) system at Tempo Beverages Ltd.'s ("Tempo") beverage
production plant in Netanya, Israel. Tempo will purchase steam from
Brenmiller at a fixed rate through a HaaS contract. By eliminating the
use of approximately 2,000 tons of heavy fuel each year, Brenmiller's
bGen(TM) is estimated to mitigate over 6,200 tons of carbon emissions
annually and save Tempo an estimated $7.5 million over 15 years.
Partially owned by Heineken International B.V., Tempo is one of Israel's
largest producers and distributors of beverages for brands including
Heineken and Pepsi. The bGen(TM) TES system for Tempo will charge using a
combination of roof-top solar and ultra-low-cost off-peak grid power.
System assembly is expected to be completed by the end of 2024 and
commissioned in May 2025.
-- $450,000 grant from Israel Innovation Authority propels $3.55 million
agreement to supply clean electric heat to Wolfson Hospital: Brenmiller
signed a 7-year definitive agreement to supply Israel's Wolfson Hospital
with electric heat. The project is valued at $3.55 million and Brenmiller
will earn recurring revenues through a HaaS contract. A grant of
approximately $450,000 from the Israel Innovation Authority is being used
to help finance the project. Brenmiller's bGen(TM) ZERO will replace
Wolfson Hospital's outdated diesel boilers, which are both costly and
polluting. According to the Israeli Ministry of Finance, Brenmiller's
bGen(TM) ZERO will potentially save Wolfson Hospital up to $1.3 million
in annual energy costs and reduce the hospital's local carbon footprint
by 3,900 tons per year.
-- Successfully handed over bGen(TM) system to the State University of New
York $(SUNY)$ at Purchase: Brenmiller completed all required system tests
and operator training for its first U.S. bGen(TM) installation and handed
the system over to SUNY Purchase. bGen(TM) is expected to eliminate
approximately 550 metric tons of greenhouse gas emissions for SUNY
annually.
Looking to Ramp Sales in North America Through Distribution Partnerships
-- U.S. distribution gets boost with 5-year $150 million sales milestone
license agreement in the Northeast: Brenmiller signed an exclusive
distribution agreement with Rock Energy Storage ("RES"). RES will sell
and distribute bGen(TM) TES systems in Connecticut, Maine, Massachusetts,
New Hampshire, Rhode Island, Vermont, and New York. The definitive 5-year
agreement includes cumulative projected sales milestones exceeding $150
million.
-- MOU with Proactive Planet to advance potential $6 million worth of
projects in Alberta, Canada: A non-binding Memorandum of Understanding
("MoU") was signed between Brenmiller and Proactive Planet, a renewable
energy solutions provider based in Calgary, to distribute bGen(TM) TES
systems to industrial companies and electric utilities in the province of
Alberta, Canada. The agreement includes an initial list of potential
customers with projects valued at over $6 million and represents
potentially 60 MWh of TES capacity.
Awards
-- The European Investment Bank named Brenmiller an "Innovation Champion"
at its EIB AdVenture Debt Summit.
-- Bloomberg New Energy Finance ("BNEF") selected Brenmiller as a 2024
BNEF Pioneers Finalist for its innovative and commercial-ready approach
to industrial decarbonization and ability to overcome key challenges on
the path to achieving net zero.
Summary of Financial Results
-- Balance Sheet: As of June 30, 2024, Brenmiller had cash and cash
equivalents and restricted deposits of $6.99 million, a net increase of
$3.78 million from $3.21 million on December 31, 2023. This is
attributable primarily to fundraising during the six months ended June
30, 2024 of approximately $7.97 million in net proceeds from the issuance
of ordinary shares, pre-funded warrants and warrants. Total assets
increased by 31% as of June 30, 2024, to $13.92 million, primarily due to
a $3.78 million increase in cash and cash equivalents following the
equity financings completed during the period. Total liabilities
decreased by 4% to $7.39 million, primarily driven by a $324,000
reduction in operating lease liabilities. Shareholders' equity increased
by 127% to $6.54 million, largely due to the equity financings completed
during the period.
-- Income Statement: Operating loss narrowed for the six months ended June
30, 2024, to $5.38 million, compared to $5.42 million for the same period
in 2023. Net loss narrowed by 70% to $1.58 million, down from $5.33
million in the prior year period, primarily driven by a $3.72 million
increase in financial income, mainly resulting from a fair value
adjustment of warrants.
-- Cash Flow Statement: Net cash used in operating activities for the six
months ended June 30, 2024 was $3.86 million, which primarily reflects a
net loss of $1.58 million and a non-cash adjustment of $2.46 million. The
net increase in cash and cash equivalents and restricted deposits for the
six months ended June 30, 2024 was $3.86 million compared to $366,000 in
the prior year period.
Subsequent Events
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August 29, 2024 16:15 ET (20:15 GMT)
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