Industrial heat production accounts for about 10% of global greenhouse gas emissions, surpassing the combined pollution from all cars, planes and ships worldwide. Despite this, efforts to decarbonize industry have largely overlooked the heat needed to manufacture steel, cement and glass. Now, Brenmiller Energy Ltd. (NASDAQ: BNRG) is stepping in with a thermal energy storage (TES) solution designed to replace fossil fuel-based industrial heat.
The company's patented bGen platform uses crushed volcanic rock to store low-cost renewable electricity as high-temperature heat, releasing it on demand as zero-emission steam, hot water or air. By using abundant materials rather than critical battery metals, the system can be charged when electricity prices are low and discharged during periods of high demand.
To address the high upfront costs of TES systems, Brenmiller recently introduced BNRG360, an energy-as-a-service model. Under this model, Brenmiller develops, owns and operates the clean energy assets, allowing customers to adopt TES without significant capital investment. The company intends to combine its bGen technology with renewable generation and battery storage, delivering heat and power through long-term service agreements. This shift from equipment supplier to integrated energy infrastructure provider is designed to generate recurring revenues and capture greater long-term value.
The need for TES is projected to grow into a multi-billion-dollar industry, driven by rising electricity consumption, industrial electrification, grid modernization, and increasing renewable energy penetration. The expansion of artificial intelligence and data centers is placing additional demands on electrical infrastructure, further boosting the need for flexible energy systems. One forecast predicts the TES market will grow at a CAGR of 10% through 2032, reaching nearly $14 billion.
Brenmiller has moved beyond the concept stage with a real-world project at Tempo Beverages Ltd. The 32-megawatt-hour TES installation is designed to fully replace the site's fossil fuel boiler-based heat production, eliminating approximately 6,200 tons of CO₂ emissions annually. The system began delivering steam power in June and is expected to become one of the company's most significant commercial reference installations, demonstrating its ability to deploy TES at industrial scale.
The company is also in discussions with other companies about decarbonization projects. Looking ahead, Brenmiller's focus is on growth, boosting cash flow and achieving sustainable profitability. With more customers expected to join the BNRG360 platform and additional project commissionings on the horizon, the company is confident it can achieve these milestones. As the industrial market seeks alternative energy sources, Brenmiller's bGen platform and BNRG360 model position it to help companies decarbonize their operations.
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