Brenmiller Energy (NASDAQ: BNRG) is in a red-hot sector- literally. And its milestones reached and those expected to accrue in the near term present an attractive value investment proposition for investors wanting exposure to the booming thermal energy storage sector. In fact, trading under a dollar a share, the opportunity looks exceptionally ripe. After all, Brenmiller Energy has revolutionary technology, proven growth, and a track record of delivering on intentions. Companies like that typically don’t trade at penny stock levels. Despite checking all those boxes and more, Brenmiller Energy does. However, that’s not necessarily bad news for growth stock investors.
Why? Because by doing the right things in a booming thermal energy storage sector, Brenmiller Energy has created an evidence-based case that the path of least resistance for its share price is paved higher. That’s far from an overzealous assessment, especially considering the company continues to secure partnerships and deals projected to contribute to a $440 million revenue pipeline. Contributions to that stream are expected to ramp up by the middle of next year.
In a recent interview with Nir Brenmiller, the company’s COO, he discussed that potential and explained the reasoning behind his company’s being comfortable providing that nearly half-billion-dollar projection. That interview is available here.
In it, he highlights that much of the investment and infrastructure needed to generate these enormous projections is already in place. And it didn’t include the company’s most recent announcement, which, if investors truly understood, should have sent its share price appreciably higher.
Video Link: https://www.youtube.com/embed/R-3gX1l5ASE
Entelios’ Flexibility Can Be Critical to Germany’s Energy Transition
Why? Because it represents a new and significant value driver that will accrue from a planned partnership with one of Germany’s premier energy management firms, Entilios AG. The magnitude of the partnership may have not been fully understood. That’s understandable- the press release announcing the non-binding LOI toward a partnership was technical, with terms used, while familiar to industry professionals, likely over the heads of layman and many of the investors reading it.
To appreciate the scope of Entelios’ impact, consider this: managing 1 GW of flexibility equates to the energy consumption of roughly 750,000 German homes or the output of a large nuclear power plant. In other words, the number 1 before GW in its release may not have inspired a second look. In reality, it should have. This scale of energy management capacity should strengthen Entelios’ role as a central player in Germany’s clean energy transition, especially regarding its ability to reshape the dynamics of the power grid by balancing energy supply and demand while stabilizing renewable energy inputs. Remember, though, it’s a partnership. Brenmiller Energy benefits, too.
Its rewards can also be substantial, especially with the EU mandating, not asking, that industries adopt clean energy strategies and solutions. How can these benefits be measured and, more importantly, from an investor perspective, valued? By looking at their impact.
-
Industrial Impact: By balancing power loads in response to demand, Brenmiller’s TES solutions support grid stability, creating competitive advantages and cost savings for heavy industries with high power needs. The combination of energy load manement and TES solutions is more than a competitive differentiation- it’s a game-changer for heavy industry, where high power loads are essential but come with very little energy cost visibility. This planned partnership mitigates, even potentially eliminates, that cost fluctuation dilemma while alleviating grid demand stress.
-
Battery Energy Storage System (BESS) Capacity: The flexibility provided by 1 GW of BESS enables Entelios to buffer fluctuations in renewable energy supply, a crucial advantage for renewable energy sources like solar and wind, which are inherently variable. This means that excess energy produced by Brenmiller during peak times can be stored and released when demand spikes, effectively integrating more renewables into the energy mix while making these sources a viable alternative for industrial applications.
-
Revenue Maximization: With access to 1 GW of flexibility, Entelios opens up substantial revenue opportunities for Brenmiller and its clients through short-term energy markets, such as ancillary services, frequency regulation, and demand response. Entelios’ advanced Cross-Market Optimization platform allows Brenmiller’s clients to monetize flexibility during periods of peak demand, capturing higher revenues while supporting grid stability.
-
Capturing Market Share: Brenmiller Energy will aim to capture a significant portion of Germany’s electric thermal energy storage market by implementing its unique Heat as a Service (“HaaS”) business model and planned bGen™ equipment sales deployments
-
Capitalizing On TES Expertise: Brenmiller’s expertise in TES technologies is highly advanced. Entelios strengthens the deliverables through its advanced software, data management, AI, and deep energy market insights, which should optimize Brenmiller customers’ energy costs and create new revenue streams.
With these advantages, Brenmiller’s expansion into Germany’s fast-growing TES market could be transformative, noting that the country’s thermal energy storage (TES) market is forecasted to reach $2.9 billion by 2028. To tap into that expectation, the LOI outlines a plan to deploy Brenmiller’s bGen™ systems across German industrial sites, replacing natural gas with renewable-based thermal energy. By leveraging Entelios’ expertise in energy flexibility and demand response, the partnership should empower Brenmiller to provide Germany’s heavy industries with high-temperature renewable energy solutions while optimizing revenue by tapping into lucrative flexibility markets.
bGen™ and bGen™ ZERO – A Game-Changer for Industrial Applications
The value driver supporting the optimism is Brenmiller’s revolutionary bGen™ thermal energy storage technology. Truly innovative, the bGen™ system converts electricity into high-temperature heat using an innovative storage medium of crushed rocks. Capable of reaching temperatures as high as 1,200°F (648.9°C), the bGen™ technology offers industrial clients a sustainable, efficient alternative to fossil-fuel boilers without compromising on performance or reliability. Notably, competing systems, even those by leading energy service providers, focus on lower-temperature TES solutions, often half of Brenmiller’s maximum capabilities.
Brenmiller extended that competitive advantage after introducing its bGen™ ZERO system, which continuously generates high-temperature heat powered by renewable energy. This distinction is critical for industries looking to decarbonize their processes in compliance with increasing environmental regulations. Adding value to compliance necessity, these systems offer seamless adaptability, a cost-effective path to sustainability, and greater energy security for industrial clients seeking to reduce emissions while achieving energy independence.
Brenmiller’s gigafactory in Dimona, Israel, which opened in October 2023 with backing from the European Union, added the production capacity to support the company’s ambitious expansion goals. It’s the world’s first thermal battery gigafactory, a milestone for Brenmiller and a significant advancement for the TES industry’s quest to offer the scalability required to meet global demand for clean energy solutions. The Dimona facility is more than instrumental for Brenmiller to monetize its enormous pipeline- it puts them far ahead competitively, noting that some of its expected competitors, while raising significant capital to develop TES technologies, have barely broken ground to advance or prove their respective technologies.
Industry Validation for Brenmiller’s Impact
By the way, Brenmiller’s groundbreaking work in TES hasn’t gone unnoticed. Its accomplishments were celebrated with prestigious accolades that validate its position as a frontrunner in clean energy innovation. In 2023, TIME magazine named Brenmiller’s bGen™ system as a Best Invention in the Green Energy category, a recognition bringing global attention to the company’s impactful technology. This was followed by Brenmiller being named an Innovation Champion at the European Investment Bank’s AdVenture Debt Summit, further validating the company’s reputation as a leader in the sector.
The honors continued with Brenmiller’s selection as a finalist in BloombergNEF’s BNEF Pioneers competition and its shortlisting in multiple categories at the 2023 Energy Storage Awards, each acknowledgment reinforcing the company’s unique contributions to the clean energy landscape. These accolades are more than a testament to Brenmiller’s technology—they affirm the company’s role in transforming the industrial energy sector with cost-effective and, as important, attainable solutions critical for a global transition toward sustainable energy.
That status could make Brenmiller Energy an increasingly indispensable partner in the clean energy sector. If so, more than the planet will be better off from it, its stakeholders will likely be as well.
Additional Disclaimers and Disclosures: This is sponsored content. Hawk Point Media Group, LLC. (HPM) has been compensated, or expects to be, to produce and distribute digital content for Brenmiller Energy Ltd. It should be expressly understood that HPM is not operated by a licensed broker, a dealer, or a registered investment adviser. It should also be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. HPM reports/releases are commercial advertisements and are for general information purposes ONLY. The information made available by HPM is not intended to be, nor does it constitute, investment advice or recommendations. The contributors do NOT buy and sell securities covered before or after any particular article, report and/or publication. HPM holds ZERO shares and has never owned stock in Brenmiller Energy Ltd. While HPM does not own or market shares, it is prudent to expect that those hiring HPM including that company’s owners, employees, and affiliates, may sell some or even all of the Brenmiller Energy Ltd. shares that they own, if any, during and/or after this engagement period. Always do your own due diligence prior to investing in any publicly traded company. Forward-Looking Statements
This article contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Statements that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements contained or implied in this articcle 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, 2023 filed with the SEC on March 18, 2024, which is available on the SEC’s website, www.sec.gov. Hawk Point Media Group, Llc. undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. For Hawk Point Media Group Llc’s full disclaimer and disclosure statement,clickHERE.
Media Contact
Company Name: Hawk Point Media
Contact Person: Editorial Dept.
Email: Send Email
Country: United States
Website: https://hawkpointmedia.com/