Company: BNRG
Filing Date: 2025-06-13
Form Type: POS AM
Source: 0001213900-25-054302
Chunk: 8

Company: Brenmiller Energy Ltd.
Filing Date: 2025-06-13
Form: POS AM
Chunk 8
---
 Facility

We
manufacture our proprietary bCube™ components for our TES systems at our production facility in Dimona, Israel. After production,
TES system components are shipped to customer sites for on-site assembly. The current production line is designed to support an annual
capacity of up to 1 GWh of bCube™ thermal storage units, which aligns with our existing project pipeline.

Our
Dimona facility, inaugurated on May 2, 2023, is Industry 4.0 compliant and has been designed to accommodate a fully automated production
process. As of the end of the first quarter of 2025, the facility reached full automation, supporting a production capacity of 1 GWh
annually. The facility is built with infrastructure and flexibility to scale up to a production capacity of up to 4 GWh per year, subject
to increased market demand and the receipt of additional orders beyond our current capacity.

The
facility has also been designed with replicability in mind, enabling the establishment of similar gigafactories in strategic markets
such as Europe and the United States. This approach supports localized manufacturing, shortens supply chains, and reduces logistics costs.

While
the initial build-out of the Dimona plant was financed through a non-dilutive €7.5 million credit facility agreement with the European
Investment Bank, or the EIB, of which €4 million was withdrawn in July 2022—we did not draw on the remaining €3.5 million
tranche. Instead, we plan to prioritize investment in localized production facilities in Europe and the U.S. to support our global expansion
strategy.

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