CEO Update: Brenmiller's Strategic Alignment with the EU's €1B Innovation Fund Gains Momentum

BOULEVARD 17.07.2025

As the EU launches its €1 billion Innovation Fund to decarbonize industrial heat, Brenmiller enters as a proven, strategically aligned participant-backed by operational collaborations across Europe, a project pipeline of commercial opportunities, and real-world deployments. With key milestones, including the upcoming commissioning of our Tempo Beverages project, we continue to move from groundwork to scale-where we believe that years of focused development will convert into market traction and long-term value creation

Text size:

ROSH HA'AYIN, IL / ACCESS Newswire / July 17, 2025 / Brenmiller Energy Ltd. (Nasdaq:BNRG)

Dear Investors,

Brenmiller Energy Ltd. (Nasdaq:BNRG), (the "Company" or "Brenmiller") is not just preparing for the clean energy transition in Europe-we believe we can help promote it.

On July 9, 2025, the European Commission formally launched the €1 billion pilot auction under the Innovation Fund (the "Fund"), marking a watershed moment in the continent's Clean Industrial Deal ("CID"). This program targets one of the most stubborn sources of emissions-industrial process heat, which accounts for 75% of industrial CO₂ emissions, yet remains less than 4% electrified.

This is not a course correction for Brenmiller-it's a natural acceleration of the path we've spent more than a decade paving.

A Strategy Years in the Making-Now Meeting Its Moment

At Brenmiller, we've always believed thermal energy storage ("TES") would become essential to industrial decarbonization. That belief has guided over ten years of research and development ("R&D"), system deployments, and mutually beneficial collaborations across Europe. What we're seeing now is the market, its demand and EU policy are moving towards us.

Our bGen™ system is already operational in Europe and directly aligned with the Innovation Fund's strategic goals, particularly in the electrification and decarbonization of industrial process heat. Specifically, bGen™ supports:

Decarbonization of industrial process heat - bGen™ is purpose-built to replace fossil-fuel-based industrial heat with clean, high-temperature electric storage, directly supporting the Fund's core mission of reducing GHG emissions in energy-intensive industries.
High-temperature industrial electrification - With capability to deliver process heat above 400 °C, bGen™ meets the Fund's criteria for electrification solutions including resistance, induction, or plasma heating at industrial scale.
Energy storage for grid flexibility and renewables integration - bGen™ offers long-duration thermal storage that smooths demand peaks, supports grid stability, and integrates with renewables-fulfilling the Fund's emphasis on energy storage technologies.
Scalable commercial readiness backed by impact metrics - Designed as a fully replicable, grid-connected system, bGen™ aligns with the Fund's requirements for maturity, cost efficiency, scalability, and measurable GHG reductions.

These aren't future aspirations being pitched-they're functional realities already operating in the field. That means that as the EU's competitive auction process is expected to open during December 2025, Brenmiller is not positioning speculative concepts; we are entering with qualified projects, field-tested assets, and direct collaboration with major industrial players already underway.

Execution Through Collaborations: Turning Strategy Into Scale

As examples, over the past 24 months, Brenmiller has strategically established the infrastructure, collaborations, and pipeline to meet this moment head-on:

Brenmiller Europe: Through our Madrid-based Brenmiller Energy Europe S.L., we've built a strong local presence capable of executing EU-compliant projects with speed and flexibility.
Viridi Energy: Our joint venture with Viridi RE ("Viridi") is unlocking direct access to industrial clients and financial capabilities.
Green Enesys: Our collaboration supports the integration of TES with green hydrogen and solar. Green Enesys Group ("Green Enesys") core project development boost our market access. The SolWinHy Cadiz Project in Spain-selected by the European Hydrogen Bank for €25 million of funding -is expected to deliver 56 MWh of renewable heat to power e-methanol production, with full system integration powered by off-grid renewables and wastewater recycling.
Enel: In Italy, our system was deployed to decarbonize a natural gas facility, proving both safety and scalability under commercial, grid-connected conditions.
Entelios AG: As Germany's top aggregator of flexible energy loads, Entelios AG is helping us monetize stored heat through real-time energy balancing and capacity markets.
Partner in Pet Food ("PPF"): One of Europe's largest pet food manufacturers, PPF is working with Brenmiller to explore the decarbonization of its thermal processes. As a high-heat industrial energy user with multi-national operations, PPF represents the type of end-user the Fund aims to support-and a strong commercial fit for bGen™ deployment.
ENASCO Ltd. ("ENASCO"): In a newly signed memorandum of understanding ("MoU"), ENASCO-a leading specialist in Small Modular Reactor ("SMR") development-has engaged with Brenmiller to co-develop bGen™-integrated TES solutions tailored for nuclear applications. The collaboration targets three potential commercial projects worth $50 million by 2030 and a long-term pipeline of up to 20 potential projects valued at $650 million. The first joint project is aimed for launching in 2027, with pilot integrations aimed at powering AI data centers.

(For those interested in the full scope of our European collaborations, project announcements, and validation milestones, a comprehensive list of sources is available in the Sources & References section at the end of this letter)

And while these collaborations are public, we are actively engaging with multiple major energy and industrial players-t with the aim of submitting as many projects as possible in the auction bid, coming this December 2025. The fact we already developed a significant project pipeline of commercial opportunities, is appealing to these major players -who have initiated contact with us regarding the Fund's eligible decarbonization projects.

Momentum in Europe, Milestones at Home

While our European pipeline is front and center in the coming Fund submission cycle-opening December 3, 2025 - we're also achieving key commercial validation elsewhere.

By year end, we anticipate full commissioning our bGen™ unit at Tempo Beverages Ltd. ("Tempo"), one of Israel's largest beverage manufacturers, the producer of Pepsi, Heineken and many additional global leading beverages. The project, backed by a grant from Israel's Ministry of Environmental Protection, is a flagship industrial deployment that will showcase how our system seamlessly integrates with live production processes-cutting emissions, lowering energy costs, and delivering stable thermal output in real-time conditions.

Tempo marks a turning point: from proving to scaling. It represents a concrete demonstration of how our decade-long technological foundation is translating into operating assets with repeatable value and measurable results.

The Inflection We've Prepared For

When we say Brenmiller is aligned with Europe's decarbonization goals, we're not offering a vision-we're presenting evidence.

The groundwork we've laid is producing results. Our systems are operational. Our projects are under way. And we believe some of the industry's most influential players are preparing to step forward, validating not only our technology-but the central role we believe bGen™ can play in Europe's industrial decarbonization story.

The Fund is not a starting point. For Brenmiller, we believe it's a catalyst to accelerate what's already in motion.

Thank you for your continued confidence and support. We look forward to sharing more progress as we move from submissions to selections, and from selections to scale.

Sincerely,

Avi Brenmiller
CEO, Brenmiller Energy Ltd. (NASDAQ:BNRG)

Sources and references:

About bGen™

bGen™ ZERO is Brenmiller's TES system, which converts electricity into heat to power sustainable industrial processes at a price that is competitive with natural gas. The bGen™ ZERO charges by capturing low-cost electricity from renewables or the grid and stores it in crushed rocks. It then discharges steam, hot water, or hot air on demand according to customer requirements. The bGen™ ZERO also supports the development of utility-scale renewables by providing critical flexibility and grid-balancing capabilities. bGen™ ZERO was named among TIME's Best Inventions of 2023 in the Green Energy category and won Gold in the Energy Storage and Management category at the 2025 Edison Awards.

About Brenmiller Energy Ltd.

Brenmiller Energy helps energy-intensive industries and power producers end their reliance on fossil fuel boilers. Brenmiller's patented bGen™ ZERO thermal battery is a modular and scalable energy storage system that turns renewable electricity into zero-emission heat. It charges using low-cost renewable electricity and discharges a continuous supply of heat on demand and according to its customers' needs. The most experienced thermal battery developer on the market, Brenmiller operates the world's only gigafactory for thermal battery production and is trusted by leading multinational energy companies. For more information visit the Company's website at https://bren-energy.com/ and follow the company on X and LinkedIn.

Forward-Looking Statements:

This letter 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. For example, the Company is using forward-looking statements when discussing: the Company's project pipeline of commercial opportunities; the Company's belief it can help promote the clean energy transition in Europe; that the Company expects long-term value creation; that EU policy and market demand are moving towards the Company's technology; that the Company expects its technology to enter the Fund's auction in December 2025 with qualified projects, field-tested assets, and active collaborations; that the SolWinHy Cadiz Project is expected to deliver 56 MWh of renewable heat to power e-methanol production; that the ENASCO collaboration targets three potential commercial projects worth $50 million by 2030 and a long-term pipeline of up to 20 potential projects valued at $650 million; that the first joint project with ENASCO is aimed for launching in 2027, with pilot integrations targeting AI data centers; that the Company anticipates full commissioning of its bGen™ unit at Tempo Beverages by year end; that Tempo is expected to cut emissions, lower energy costs, and deliver stable thermal output in real-time; and that Tempo represents a turning point from proving to scaling the Company's technology. 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 letter. 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; 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 letter 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, 2024 filed with the U.S. Securities and Exchange Commission ("SEC") on March 4, 2025, which is 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. References and links to websites have been provided in this letter as a convenience, and the information contained on such websites is not incorporated by reference herein.

Contact: [email protected]