Brenmiller Energy See Massive Potential for U.S. Thermal Energy Storage Market with New IRS Tax Credit
21 Décembre 2023 - 2:30PM
Business Wire
Brenmiller Energy Ltd. (Nasdaq: BNRG) ("Brenmiller," "Brenmiller
Energy" or the "Company"), a leading global provider of thermal
energy storage (TES) systems for industrial and utility markets,
today shared comments enthusiastically welcoming the release of
initial guidance for U.S. tax credits specifically incentivizing
clean energy storage technologies, including TES.
The December 14th, 2023 publication in the Federal Register, the
official journal of the U.S. government, clarifies credit rules for
the Section 45X Advanced Manufacturing Production Credit (the
“Section 45X Credit Rules”) established by the Inflation Reduction
Act of 2022. The credit rules, currently in a 60-day public comment
period, would pave the way for domestic U.S. planning, production,
and supply chain development for crucial energy infrastructure like
TES if enacted as currently proposed.
"This credit incentive is a pivotal moment for thermal energy
storage, and for Brenmiller," stated Brenmiller Chairman and CEO,
Avi Brenmiller. "It signals a clear understanding that thermal
energy storage is a critical pillar for decarbonization. We believe
this proposed regulation's impact on TES will mirror the
transformative effect tax credits had on solar and electric
vehicles, propelling companies like Tesla."
Brenmiller's turn-key bGen manufacturing system is strategically
designed for global replication and local market adaptability. The
bGen's modular design with high energy density aligns with the
proposed Section 45X Credit Rules, which scales by kilowatt-hour
stored, potentially qualifying Brenmiller's maximum-capacity system
for a significant credit. Brenmiller has always prioritized
establishing local manufacturing footprints within its target
markets like the U.S., and the bGen's production lines at its TES
gigafactory in Dimona, Israel were designed to be replicated
elsewhere with locally sourced components, which can facilitate
rapid deployment, minimizing logistical challenges and fostering
partnerships with local material suppliers.
The explicit inclusion of TES in the credit program is a
significant development. Previously, uncertainty hung over TES
eligibility, prompting Brenmiller's active engagement with other
companies and associations to proactively advocate for its
inclusion over the last year. This change not only benefits
Brenmiller but also signifies broader recognition of TES as a vital
decarbonization technology. According to a report from the
Renewable Thermal Collaborative, if deployed at scale, thermal
batteries have the potential to slash emissions by nearly 800
million metric tons per year. Globally, the market for thermal
energy storage is predicted to reach over $2 trillion by 2040,
according to the Long Duration Energy Storage Council.
The initial guidelines clarify that "modules with no battery
cells" manufactured in the U.S., including TES systems, will
receive a $45 per kilowatt-hour credit. As an example, a 30 MWh TES
system (similarly sized to a recently announced bGen system in
Israel) would qualify for a $1.35 million credit under the proposed
structure in the U.S. These tax credits are scheduled to phase out
gradually from 2030 to 2033.
By absorbing and storing excess wind and solar energy as heat,
reaching temperatures of around 650°C (1200°F), the bGen is ideally
suited to power industrial processes – projected to be the largest
source of U.S. emissions by 2030. This opens doors for
cost-competitive clean energy solutions in a sector crucial for
national decarbonization goals.
While the potential cost savings for Brenmiller are encouraging,
the larger focus lies in building a robust domestic TES supply
chain in the United States. The $45/kWh credit unlocks an exciting
market potential, and Brenmiller is committed to working with
stakeholders to establish a thriving U.S. TES ecosystem.
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.
Forward-Looking Statements
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 states: that it believes that the regulation's
impact on TES will mirror the transformative effect tax credits had
on solar and electric vehicles; that the bGen's modular design
aligns with the proposed Section 45X Credit Rules, which scales by
kilowatt-hour stored, potentially qualifying Brenmiller's
maximum-capacity system for a significant credit;; that the
proposed tax credits are scheduled to phase out gradually from 2030
to 2033; that the proposed tax credits have potential cost savings
and market potential for Brenmiller; that thermal batteries have
the potential to slash emissions by nearly 800 million metric tons
per year; the market for thermal energy storage is predicted to
reach over $2 trillion by 2040, according to the Long Duration
Energy Storage Council; and that Brenmiller is committed to working
with stakeholders to establish a thriving U.S. TES ecosystem.
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; 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 SEC on
March 21, 2023, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20231221998518/en/
Media: Tori Bentkover
brenmillerenergy@antennagroup.com
Brenmiller Energy (NASDAQ:BNRG)
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