Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy" or the "Company") (Nasdaq: BNRG), a leading global provider of thermal energy storage ("TES") solutions for utility and industrial markets, today issued a Letter to Shareholders from its CEO and Chairman, Avi Brenmiller.
To our Shareholders,
Amidst current geopolitical tensions, the World Bank's latest forecasts on oil prices make it abundantly clear that the time for renewable energy is now — and thermal energy storage is at the forefront of this new era.
Last week, the World Bank indicated that escalating conflicts in the Middle East might drive oil prices beyond $150 per barrel. We, at Brenmiller, believe they are overestimating the potential price shock by underestimating the enormous ability of renewables and energy storage to meet new demands.
Trends of increasing oil prices make renewables and energy storage more cost-competitive. We’ve seen this before: The 1970s oil crisis catalyzed a global quest for energy security, marking the beginning of a major shift toward alternative energy sources. At the time, concepts like global warming and environmental protection were just starting to emerge. Rather, a fervent desire to achieve energy independence from major oil-producing nations catalyzed the Western world's pursuit of alternative energy sources. Five decades on, we are again at a critical historic crossroads. This time, however, the situation is compounded by the urgent need to curtail emissions in the battle against climate change.
Today, energy independence and security are more vital than ever. Recent events around the globe further underscore the inextricable link between energy and self-determination. But we believe this geopolitical instability will accelerate, not impede, the growth of renewable energy.
In Europe, the transition to renewable energy gained new urgency amid both stringent emissions regulations and the crucial need to decrease reliance on Russian natural gas. A parallel shift is underway in Israel, where declining gas exploration dovetails with growing motivation to adopt clean energy sources. In the United States, according to a report by the American Clean Power Association, there was a 172% quarter-over-quarter upswing in grid-scale energy storage installations in the U.S. in the second quarter of 2023. We’re pleased that our projects are part of this unprecedented global growth in storage solutions that contribute to a more resilient and sustainable energy grid.
Thermal energy storage is key to achieving true energy independence. Energy stored as heat can deliver, clean, on-demand power and diminish the need for imported fossil fuels. When paired with renewables, thermal storage can provide 24/7 carbon-free energy, avoiding the volatile energy markets noted above. With built-in storage, renewable energy becomes available when it's needed most - day or night, rain or shine. Grid operators can store surplus clean power as heat and then extract it to meet peak demand. Thermal storage also makes renewable power dispatchable for individual users. By unlocking renewables' full potential, we believe thermal energy storage is key for both grid stability and empowering users to become self-sufficient. In other words, it enables true energy independence and sustainability.
As a pioneer in renewable heat technology and proud Israeli company, we are now, more than ever, committed to using innovation to build a prosperous and sustainable energy future for communities worldwide. Our technology is proven and environmentally sound. We are the first thermal energy storage company in the world to operate a gigawatt-scale production plant, a true gigafactory, and we recently announced two groundbreaking projects to replace fossil fuel-powered boilers at a hospital and in partnership with a major beverage corporation. By transitioning away from fossil fuels, Brenmiller is helping these organizations achieve stability and reduce exposure to traditional volatile energy markets.
The current war in Gaza has had no material effect on our operations and development as we remain committed to our mission and value creation. Thank you for your continued trust and partnership. Your steadfast support as shareholders empowers us to develop innovative technologies that increase energy independence and reduce emissions. With your help, we can realize our shared vision of secure, clean energy for all.
Chairman & CEO
About Brenmiller Energy Ltd.
Brenmiller Energy delivers scalable thermal energy storage solutions and services that allow customers to cost-effectively decarbonize their operations. Its patented bGen thermal storage technology enables the use of renewable energy resources, as well as waste heat, to heat crushed rocks to very high temperatures. They can then store this heat for minutes, hours, or even days before using it for industrial and power generation processes. With bGen, organizations have a way to use electricity, biomass and waste heat to generate the clean steam, hot water and hot air they need to mold plastic, process food and beverages, produce paper, manufacture chemicals and pharmaceuticals or drive steam turbines without burning fossil fuels. For more information visit the company’s website at https://bren-energy.com/ and follow the company on X (formerly Twitter) and LinkedIn.
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal and Israeli securities laws. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses: estimated future commodity prices; Brenmiller’s belief that geopolitical instability will accelerate the growth of renewable energy; the benefits of renewable energy and thermal storage; the Company’s commitment to use innovation to build a prosperous and sustainable energy future; and the Company’s vision of secure clean energy for all. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this press release. Factors that may affect the Company’s results include, but are not limited to, the Company’s planned level of revenues and capital expenditures, risks associated with the adequacy of existing cash resources, the demand for and market acceptance of our products, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks and political, economic and military instability in the Middle East, specifically in Israel. The forward-looking statements contained or implied in this press release 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, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 21, 2023 and other documents filed with or furnished to the SEC, which are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
We believe the World Bank is overestimating the potential price shock by underestimating the enormous ability of renewables and energy storage to meet new demands. Today's geopolitical instability will accelerate, not impede, the growth of renewable energy