ROSH HA'AYIN, Israel - Brenmiller Energy Ltd. (NASDAQ:BNRG), an Israeli-based global provider of thermal energy storage solutions, has entered into an exclusive distribution agreement with Rock Energy Storage, LLC to market and service its bGen™ thermal energy storage systems in the Northeast United States.
The five-year agreement encompasses states such as Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York, with cumulative projected sales milestones surpassing $150 million.
The partnership with Rock Energy Storage, a New York-based private company, marks a significant step in Brenmiller's efforts to expand its presence in the U.S. market. The Northeast region has been targeted due to its progressive electrification and decarbonization initiatives, which align with the sustainability and flexibility features of Brenmiller's bGen™ technology.
Rock Energy Storage's President and CEO, Cory Glick, expressed enthusiasm for the bGen™ system's decarbonization capabilities and its reception across various sectors. Glick highlighted the technology's eligibility for substantial federal incentives under the Inflation Reduction Act and additional support from state and utility programs.
Brenmiller's thermal energy storage system utilizes crushed rocks to store low-cost electricity from renewable or other sustainable sources, releasing steam, hot water, or hot air as needed. This system aims to replace fossil fuel boilers, which are significant contributors to global emissions, with a zero-emission heat source that ensures operational reliability around the clock.
Brenmiller has a history of collaboration with RSP Systems, an energy generation systems leader since 2004, which will act as Rock Energy Storage's lead subcontractor. The two companies have worked together on the first U.S. bGen™ installation in New York.
As of May 1, 2024, Brenmiller and Rock Energy Storage have numerous active project proposals in their pipeline, representing over 1,200 MWh of thermal energy storage capacity. The bGen™ system was recognized among TIME's Best Inventions of 2023 in the Green Energy category.
This partnership is part of Brenmiller's broader strategy to implement a $500 million project pipeline aimed at accelerating the deployment of its energy storage solutions. The company operates the only gigafactory for thermal battery production worldwide and is considered a leading developer in the thermal battery market.
The information in this article is based on a press release statement.
In other recent news, Brenmiller Energy Ltd. has announced a significant expansion in its project pipeline, now encompassing 49 potential contracts valued at over $500 million. These projects, which aim to deliver more than 6,000 MWh of zero-emission heat through the company's bGen™ ZERO thermal energy storage (TES) systems, span 12 industries across multiple countries including the United States, Spain, Hungary, Israel, and India.
The company's bGen™ TES technology, recognized by TIME as one of the Best Inventions of 2023 in the Green Energy category, is designed to replace fossil fuel boilers in industrial and power plants.
In other recent developments, Brenmiller Energy has reported strategic advancements and financial results for the year ended December 31, 2023. The company completed key commercial projects and inaugurated a new gigafactory in Israel, aimed at supporting potential sales of up to $200 million. The company's financials show a decrease in net research and development expenses by 32% to $3,178,000 for the year ended December 31, 2023.
Brenmiller Energy has also made strides in international collaborations. The company has entered into a memorandum of understanding (MoU) with Waaree Energies to deploy TES systems in India, and another MoU with RSP Systems for exclusive distribution of bGen™ in the U.S. Northeast Region. Furthermore, Brenmiller Energy plans to increase its presence in Europe through a joint venture with Green Enesys and Viridi, starting in Spain, Germany, and France.
InvestingPro Insights
In light of Brenmiller Energy Ltd.'s (NASDAQ:BNRG) new distribution agreement to expand its U.S. presence, particularly in the Northeast, investors may be keen to understand the financial health and market performance of the company. According to recent InvestingPro data, Brenmiller Energy has a market capitalization of 2.63 million USD, which is relatively small, suggesting it is a niche player in the thermal energy storage industry. The company's revenue for the last twelve months as of Q4 2023 stood at 0.62 million USD, with a considerable decline of 59.14% from the previous period. This could raise concerns about the company's current financial trajectory.
Moreover, the company's gross profit margin for the same period was notably negative at -150.4%, indicating that it is spending more to produce its goods than it is earning from sales. This is corroborated by an InvestingPro Tip that points out Brenmiller's weak gross profit margins. Additionally, the stock's performance has been underwhelming, with the price having fallen significantly over the last year, and one-week price total return as of mid-April 2024 showing a steep decline of -21.99%.
However, it's not all gloomy for Brenmiller Energy. Another InvestingPro Tip suggests that the stock is currently in oversold territory according to its Relative Strength Index (RSI), which could indicate a potential rebound. There's also a silver lining in the company's liquidity position; it has more liquid assets than short-term obligations, which is crucial for meeting immediate financial needs. For investors looking for detailed analysis and additional insights, InvestingPro offers more tips on Brenmiller Energy. Currently, there are 20 additional InvestingPro Tips available, which can be accessed by subscribing to the service. For those interested, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.