A contract with significant potential for the renewable energy company Burnmiller Energy: The company, which has not yet recorded significant revenue, and has been presenting heavy losses since its inception, has reported a five-year framework agreement with an international tobacco corporation to supply storage systems. According to estimates, the customer is tobacco giant Philip Morris, which is traded in New York for $ 168 billion.
The agreement mentioned 41 production sites where Philip Morris works to reduce greenhouse gas emissions, and set the commercial conditions for the supply of systems and services. The company estimates that the financial scope of such projects is in the range of $ 5-10 million per project. This means a revenue potential of $ 205-410 million for Brennmiller in the coming years. Burnmiller’s system will replace existing steam production systems based on natural gas, in biomass-based production.
Avi Brenmiller, founder and CEO of Burnmiller Energy, said: “The framework agreement has great potential for a step up in Brenmiller’s operations and growth. In our opinion, the agreement will also support our ability to sign agreements with other giant companies that are interested in reducing carbon emissions at their production site. “
He added, “We are currently in a significant momentum with advanced phases in Brazil, the US, Italy and Israel, and believe that the need for world-leading industrial and electricity companies to reduce emissions and streamline their energy production processes will provide a significant boost to our operations.”
Burnmiller Operates in the field of technology-based thermal energy storage developed by its founder, Avi Burnmiller, who founded the company in 2012, after a previous company he founded and managed, Solel, was sold a few years earlier to German Siemens.
Bernmiller Energy was issued in Tel Aviv in 2017, and since then the stock has lost about half a campaign, and it reflects the company’s current value of about NIS 220 million. The largest shareholders in the company are founder Bernmiller (37%) and businessman Rani Zim (15%). Which is also the controlling owner of a trading center company that bears his name and in the investment management activity acquired from Psagot Investment House (through Valley Capital).