Generating industrial heat accounts for about 10% of global greenhouse gas emissions, surpassing the combined emissions from all cars, planes, and ships. Despite this, industrial heat has received relatively little attention in decarbonization efforts. Electrification, the current green approach, faces challenges such as grid capacity limits, high electricity costs, and difficulty achieving ultra-high temperatures consistently. Meanwhile, burning fossil fuels remains common but is increasingly untenable as companies and governments pursue carbon reduction targets.
Brenmiller Energy Ltd. (NASDAQ: BNRG) offers an alternative through its bGen thermal energy storage (TES) platform. The system uses crushed volcanic rock as a solid-state heat battery, storing low-cost renewable electricity as high-temperature heat and releasing it on demand as zero-emission steam, hot water, or air. By avoiding critical battery metals, the system can be charged when electricity prices are low and discharged during peak demand.
To reduce upfront costs, Brenmiller launched BNRG360, an energy-as-a-service model where Brenmiller develops, owns, and operates the integrated clean energy systems. Customers sign long-term service agreements, eliminating capital investment. This strategic shift from equipment supplier to energy infrastructure provider is designed to generate recurring revenues and deepen customer relationships, potentially reshaping how investors evaluate the company as its installed base grows.
The TES market is poised for growth, driven by rising electricity consumption, industrial electrification, grid modernization, renewable energy penetration, and energy security concerns. The expansion of AI and data centers adds further demand for flexible energy systems. Forecasts predict the TES market will grow at a CAGR of 10% to nearly $14 billion by 2032.
Brenmiller is proving its technology at scale with Tempo Beverages Ltd., a 32-megawatt-hour TES installation that supplies continuous industrial process steam, fully replacing a fossil fuel boiler. The system is expected to eliminate approximately 6,200 tons of CO₂ emissions annually and began delivering steam in June. This project, representing over 15 years of development, serves as a blueprint for future industrial decarbonization deployments. Brenmiller is also in discussions with other companies for similar projects.
Looking ahead, Brenmiller focuses on growth, cash flow, and sustainable profitability, expecting more customers to join the BNRG360 platform. For more information, visit the company's website here.
