Brenmiller Energy Highlights McKinsey Analysis Pointing to a Potential 16 Billion Euro European Market Opportunity for Thermal Energy Storage
New Analysis Suggests Industrial Heat Electrification Economics May Improve Meaningfully, With Projected Returns Potentially Exceeding Typical Industrial Hurdle Rates Across Europe by 2030
Rosh Ha’Ayin, Israel–(Newsfile Corp. – March 20, 2026) – Brenmiller Energy Ltd. (NASDAQ: BNRG) (“Brenmiller”, “Brenmiller Energy” or the “Company”), a provider of integrated power and heat solutions for industrial and utility customers built around its proprietary thermal energy storage (“TES”) technology, today highlighted the rapidly expanding market opportunity for industrial heat electrification in Europe following the release of a March 13, 2026 McKinsey & Company blog of Industrial heat electrification in Europe: New business models emerge, that underscores the improving economics and strong growth potential of TES systems.
The report identifies industrial heat as one of the largest energy consumption segments globally, accounting for nearly two-thirds of total industrial energy use. While electrification of industrial heat has long been technically feasible, economic barriers such as high upfront capital costs and electricity pricing dynamics historically slowed adoption. Today, evolving energy market conditions across Europe, including recent spikes in natural gas prices, heightened price volatility and supply uncertainty driven in part by ongoing geopolitical instability, are improving the economics of electrified heat and creating a compelling opportunity for TES systems that store low-cost electricity and convert it into industrial heat when needed.
According to McKinsey’s analysis, internal rates of return for eight-hour TES systems of more than 15% are achievable in most countries assessed by 2030, placing these investments within or above typical industrial hurdle rates. The report also estimates that TES capacity in Europe could grow from less than 0.5 gigawatt-hours today to more than 200 gigawatt-hours by 2035, representing an approximately €16 billion cumulative capital investment opportunity over time as industrial companies increasingly seek cost-effective solutions to decarbonize heat production while maintaining energy reliability.
Brenmiller’s patented bGen TES technology converts electricity into stored thermal energy using crushed rock as a storage medium and delivers high-temperature steam or hot air on demand for industrial processes, enabling customers to store renewable and low-cost electricity and use it later for heat production. The Company’s systems help industrial operators reduce both energy costs and emissions, and Brenmiller is actively advancing projects and collaborations across Europe as industries increasingly seek solutions to electrify heat and reduce reliance on fossil fuels.
