Expansion into AI Data Centers and Key Projects Position Brenmiller for Sustainable Growth
Brenmiller Energy (BNRG), a leading provider of thermal energy storage (TES) solutions, continues to make significant strides in the renewable energy sector, marked by a series of strategic developments and innovative projects. The company’s recent financial results for the first half of 2024 highlight a robust pipeline and a commitment to expanding its groundbreaking bGen technology into new markets, including the cooling of AI data centers.
Strategic Financial Moves and Expansions
On August 2, 2024, Brenmiller entered into a definitive agreement for a $1.05 million private placement with an existing institutional shareholder, priced at a 52% premium to the market. This agreement not only underscores investor confidence but also provides the shareholder with the right to further invest in an additional one million shares, contingent on the company’s stock closing at or above $2.50 within the next 12 months. This infusion of capital is expected to fuel Brenmiller’s ongoing projects and innovation efforts.
Among the most exciting developments is Brenmiller’s exploration of expanding its bGen technology into Cold Thermal Energy Storage (CTES) for artificial intelligence (AI) data centers. As AI computing grows rapidly, so does the demand for sustainable and efficient cooling solutions. Brenmiller’s bGen Cool, a cold thermal energy storage solution, aims to address this need with minimal additional investment. This expansion not only opens up new markets but also aligns with global efforts to decarbonize energy-intensive industries like data centers.
Expanding Project Pipeline and Global Partnerships
Brenmiller’s Chairman and CEO, Avi Brenmiller, emphasized the company’s commitment to advancing its technology and delivering tangible benefits to customers and shareholders alike. “Our pioneering bGen thermal battery continues to support the growing and mostly unmet need for on-demand access to sustainable heat,” he stated. The company has built an impressive project pipeline, potentially worth up to $500 million, with several proposals under negotiation with Fortune 500 companies in markets where Brenmiller’s technology is both feasible and cost-competitive compared to fossil fuels.
A key project in this pipeline is the development of a 30 MWh bGen ZERO system for Partner in Pet Food Hungaria KFT (PPF), one of Europe’s largest private label pet food producers. Under a 12-year Heat as a Service (HaaS) agreement, Brenmiller will provide low-cost, low-carbon steam to PPF, significantly reducing the factory’s reliance on fossil fuels. This project, which is Brenmiller’s first to generate revenues from both selling heat and offering grid balancing services, is expected to reduce PPF’s gas consumption by 25-30% and lower its carbon footprint.
Similarly, Brenmiller is making strides in Israel with a significant project at Tempo Beverages Ltd.’s plant, partially owned by Heineken International B.V. The 32 MWh bGen system at Tempo is expected to save $7.5 million over 15 years by eliminating the use of 2,000 tons of heavy fuel each year. The system, which will charge using rooftop solar and off-peak grid power, is set to be completed by the end of 2024 and commissioned in May 2025.
Focus on Recurring Revenue and Sustainability
In addition to these projects, Brenmiller is also set to supply clean electric heat to Israel’s Wolfson Hospital under a $3.55 million agreement supported by a $450,000 grant from the Israel Innovation Authority. This project will replace the hospital’s outdated diesel boilers with the bGen ZERO system, potentially saving up to $1.3 million annually in energy costs and reducing carbon emissions by 3,900 tons per year.
Brenmiller’s first U.S. installation at the State University of New York (SUNY) at Purchase also marks a significant milestone. The bGen™ system, which has completed all required tests and operator training, is expected to eliminate approximately 550 metric tons of greenhouse gas emissions annually.
Looking Ahead: North American Expansion
Brenmiller is actively expanding its footprint in North America. A recent 5-year exclusive distribution agreement with Rock Energy Storage (RES) in the northeastern United States is projected to generate over $150 million in sales. Additionally, a Memorandum of Understanding (MoU) with Proactive Planet in Alberta, Canada, aims to advance projects valued at over $6 million, further solidifying Brenmiller’s presence in the North American market.
As Brenmiller continues to execute its projects and expand its technology’s capabilities, the company is well-positioned to meet the growing global demand for sustainable energy solutions. With its gigafactory expected to be fully operational by the end of 2024, Brenmiller is poised to deliver on its ambitious goals, driving both environmental and financial benefits.
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