Burnmiller: Production of the storage system – the capital market has been completed

Renewable Energy Company

Burnmiller
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It reports that it has completed the production of the bGen system and in the engineering tests it was found that it meets the outputs to which the company has committed against the Brazilian Portal (FORTLEV), its main customer, who purchased the system from it for $ 380,000. This is a third milestone in the agreement between the parties, for which Bernmiller will receive an additional portion of the donation agreed upon. The fourth payment will be paid after the system arrives at the site.

The system burns in a controlled manner wood chips (biomass) which it converts into thermal energy. According to Bernimler, this is the first development of its kind and the market it is addressing, the biomass market is highly developed in Europe, the US and Brazil. The company expects that proof of performance and full function will allow the company to accelerate sales efforts in Brazil and in general.

Last year, the company signed a binding agreement with a Hungarian company that will distribute bGen systems in Hungary, Slovakia, Romania, Bulgaria, Ukraine and Austria. An exclusive distribution agreement was also signed with Green EnerSys in Germany and Spain, which is conditional on meeting sales targets. The market may not be satisfied with the results of the tests on behalf of the company and will wait to see the system embedded in the customer Portal and functioning as required.

In addition to the purchase of the system, Portlav received a license from Brennmiller for $ 1.5 million to market the bGen series products in Brazil and Colombia, and for every transaction Portal brokered, it would receive 10% of Brennmiller’s revenue. Portal will soon move to the late outline agreed upon, in which it will manufacture the systems itself and pay Bernmiller royalties of 10%. Brenmiller hopes that the Portal Silence plant will help reduce the cost of manufacturing products, and hence lead to increased demand.

Brenmiller’s bGen system utilizes, among other things, debris from deforestation and deforestation for energy production, instead of being thrown away in vain. While the cost reduction may support demand in Brazil, but in a future scenario where the country reduces the creation of Amazon forests and there is less biomass to utilize, demand may well at least. It will be recalled, however, that incumbent President Jair Bolsnero opposes the speech and accuses the countries that visit him of interfering in matters that are not theirs, as the Amazon forests – the largest green lung in the world – are at the end of the day in Brazil.

Burnmiller, controlled by Avi Burnmiller, was established in 2012 and initially focused on solutions for generating thermo-solar energy, but later on as the prices of energy generation using solar panels became more competitive, it moved to the development of heat storage solutions. The company is setting up a project that combines thermo-solar energy and photovoltaic panels in the Rotem Industrial Park, and has signed storage projects in front of the Galil Medical Center in Nahariya, the energy giant ENEL from Italy and the New York Electric Company. Last month, Bernmiller received a budget of NIS 1.65 million from the Innovation Authority in favor of a transition from development to serial production of storage systems.

Since the beginning of the month, the company’s share has fallen by about 5%, and today it is traded at about NIS 400 million. In the middle of 2020, it did not record revenues and lost NIS 4 million. In 2019 as a whole, it generated NIS 330 million and lost about NIS 40 million. Recruitment of new customers and hence future sales will also be affected by the success of the implementation of the systems vis-à-vis existing customers, the benefit these will derive from them and the advantages over competitors in the field of energy storage. All of these will determine whether the value at the current point in time has indeed justified itself.