Brenmiller Energy Announces Waiver from European Investment Bank and Advances Toward Debt Settlement in Support of Its BrenX Growth Strategy

Brenmiller Energy Ltd. (NASDAQ: BNRG) a leading global provider of Thermal Energy Storage ("TES") solutions for industrial and utility customers, today announced that the European Investment Bank ("EIB") has executed a waiver to defer the Company's upcoming loan payment under the Company's March 2021 credit facility with the EIB and that the parties are advancing toward a full and final settlement of the existing loan facility — a significant step that, if completed, the Company expects would reduce its debt and strengthen its financial position as it executes the BrenX growth strategy.

As part of the waiver, the EIB has agreed to temporarily waive certain rights arising solely from the Company's scheduled payment obligation with respect to an approximately €1.7 million loan payment due on July 28, 2026, with the waiver remaining in effect through September 15, 2026, unless earlier terminated or extended in accordance with its terms, thereby providing the Company with additional time to pursue a definitive settlement while preserving near-term liquidity, preserving near-term cash as the parties work toward a settlement designed to lower Brenmiller's debt and free capital for growth.

The process builds on a long-standing relationship with the EIB, whose financing supported Brenmiller in establishing the world's first gigafactory dedicated to producing TES systems.

This manufacturing platform created the industrial foundation for the Company's proprietary bGen™ technology and helped position Brenmiller to pursue the next stage of its development.

BrenX represents the Company's evolution from primarily manufacturing and selling TES systems into an integrated industrial energy developer and provider.

Under the BrenX strategy, the Company intends to combine its proprietary bGen™ technology with renewable generation, energy management and complementary infrastructure to develop, own and optimize energy assets under long-term commercial structures.

As the Company's business model evolves, Brenmiller believes its capital structure should evolve with it.

The ongoing process with the EIB is intended to give the Company a leaner balance sheet and greater financial flexibility to fund the BrenX model, which aims to generate long-term, recurring revenue.

The Company also believes that the process will support a "Made in the EU" initiative, aimed at expanding European manufacturing, supply-chain and project execution capabilities as BrenX grows across the region.

The executed waiver deferring the approximately €1.7 million payment due on July 28, 2026 reflects the constructive nature of the discussions and is a step toward a full and final settlement of the existing loan.

The Company expects that settlement would retire the obligation for a meaningful reduction relative to the amounts otherwise payable — strengthening its balance sheet, reducing its debt burden and freeing capital to advance the integrated, long-term BrenX platform.

"The EIB's financing played an important role in enabling Brenmiller to build a first-of-its-kind industrial platform—the world's first gigafactory dedicated to producing thermal energy storage systems," said Nir Brenmiller, Deputy Chief Executive Officer of Brenmiller Energy.

"The EIB's decision to defer our next payment gives us added financial flexibility, and we are now working toward a final settlement that we expect would meaningfully reduce our debt.

This is a major positive step toward strengthening our balance sheet and would allow us, upon successful completion of the settlement, to direct more of our resources into building the long-term BrenX platform," Brenmiller added.