Brenmiller Energy, an Israeli provider of industrial energy storage solutions, has signed a €7.5 million (£6.4m) financing agreement with the EU bank to support the construction of a large-scale factory for its storage unit.

The loan from the European Investment Bank (EIB) will allow the company to commercialise the third generation of its heat storage and steam generator system throughout Europe, North America and Africa, helping bridge the gap between renewable energy and conventional power.

Brenmiller Energy’s thermal storage system consists of three key elements – thermal storage, heat exchangers and a steam generator, all inside the same unit.

It uses crushed rock as storage material, guaranteeing high performance and low maintenance over time as well as environmentally-friendly manufacturing cycle.

The technology can use multiple heat sources such as residual heat or biomass and can also be charged electrically via embedded electric heaters.

On the output side, the storage unit can provide energy in the form of steam, hot water, air or electricity.

Avi Brenmiller, CEO of Brenmiller Energy said: “The decarbonisation of heat, industrial and district heating is one of the major challenges in the fight against climate change. I believe our unique thermal storage technology will play a significant role in integrating renewables into the industrial segment, thus enabling deeper integration of renewables into the grid.

“Our co-operation with the EIB is a major milestone in the road towards the full commercialisation of our technology. The EIB’s support will facilitate the fast ramp-up of our production lines to keep up with the increasing demand for our products.”