Company: BNRG
Filing Date: 2025-04-09
Form Type: DRS
Source: 0001213900-25-030015
Chunk: 12

Company: Brenmiller Energy Ltd.
Filing Date: 2025-04-09
Form: DRS
Chunk 12
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 a subsidiary of the Baran Group
Ltd., or Baran, (TASE: BRAN), an international engineering company that provides management, design and financing solutions for large-scale
infrastructure projects, to accelerate bGen™ ZERO project development and deployments through sales, acquisitions, and operations
of selected projects in Israel. To further bGen™ uptake within industrial sectors, we plan to sell certain projects to Baran, subject
to the satisfaction of certain conditions precedent, benefiting from Baran’s core project capabilities to ensure effective and timely
deployment.

Business Strategy and Addressable Markets

Industrial heat accounts for
25% of global energy demand as well as one quarter of the world’s energy pollution. As renewable energy generation increases, the need
for a reliable method to store clean energy is a major challenge facing the industry and regulators. Electrothermal energy storage, or
ETES, fills the gap between the variability of renewable energy availability and the steady need for industrial heat demand, and is estimated
at $155 billion of addressable market value. ETES also charges by taking excess power off the grid when power is cheapest and stores the
energy to output power as needed and when energy prices are higher. Our primary market is the electrification of heat for the industrial
sector. We are focused on the sale of thermal storage equipment using several business models. To date, the completed projects employ
the sale of equipment model in which we design and sell our equipment to third party customers, install the equipment at the customer’s
site and the customer remains the owner of the equipment and we provide warranty and maintenance services to the customer at a predetermined
price as part of the sale package.

In 2023, we also started the
implementation of our new business model, the EaaS model, wherein we install a TES bGen system for the benefit of third-party
customers at a customer’s site and provide operation and maintenance services. We then sell energy (steam, hot air, etc.) to the
customer at agreed upon prices. The EaaS model is more suitable to industrial customers who are not energy experts and wish to outsource
their energy services. In 2023, for the Tempo Beverages Ltd., or Tempo, project, we initiated our first EaaS contracts where we plan to
own, finance, build and operate our TES systems at or near our customers’ sites and either sell the energy to the customer at a
fixed energy price or receive a fixed revenue stream in connection with the energy service provided to the