Bimergen Energy Corporation Water Tower Research Virtual Insights Conference

Good morning, everyone. Thank you for joining us for this session of the WTR Insights Conference featuring Bimergen Energy. I'm Eric Goldstein, Managing Director of Mobility and Industrial Technology for Water Tower Research, and I'll be your host today. We are pleased to be joined by Bob Brilon, Co-Chief Executive Officer and Chief Financial Officer of Bimergen. Bob, welcome, and thank you for being here today.

Thanks, Eric. It's always a pleasure.

Before we begin, please note that Bimergen's safe harbor statements can be found on the investor tab on their website. We'll aim to address questions submitted during today's conversation or in the management series report that will follow. Please enter your questions in the chat. Investors interested in scheduling a meeting with Bimergen can indicate that interest within the conference portal. For those not familiar with the company, Bimergen Energy Corporation, ticker symbol BESS on the NYSE American, is an independent power provider and project developer focused on utility scale, Battery Energy Storage Systems assets. With coverage across several ISO regions across the U.S., the company owns approximately 30 development stage Battery Energy Storage System projects with a cumulative capacity of around 2 gigawatts.

Bimergen's growth strategy centers on securing project financing, advancing construction, and partnering with institutional counterparties to operate long-term offtake agreements, ensuring stable contract-backed revenue streams. With the housekeeping items covered, let's jump right in. Just question number one, Bob. Can we talk about the evolution of the Bimergen platform? Bimergen has evolved into a U.S. energy infrastructure developer and operator with a substantial battery storage pipeline. As the platform scales, how do you see the balance developing between originating projects, monetizing the development value, and retaining ownership interests that can generate long-term operating cash flow?

That's a great question, Eric. And really one thing to get out there is our business strategy is to build these projects, have ownership interest, and buy low, sell high on energy. We're putting energy into a battery, selling it back when it's a much higher cost, helping balance the grid in those areas. And to your point there is we're going to be involved with every one of the projects that we currently have in our pipeline. That was for 2023 that we had bought back in April 2024, and then we've bought additional projects. And it's interesting when we say buy, we really don't spend cash. We really go out and do a financial engineering where we buy a project and sell a project really as soon as we have a place to put it, and we want to move it forward.

What that means for us is at the end, we want to own a portion or 100% of that project. As it's generating revenues, we're getting that revenue flow through our books, and we're also end up with a good substantial profit from that.

Okay, great. You've highlighted $400 million in potential revenue. You've highlighted a path to approximately $400 million of annual revenue from the broader project portfolio you already have once it's fully developed. Can you walk investors through the major building blocks behind that opportunity. And what gives you the confidence in the scale of the platform.

Yeah, no, happy to. As you mentioned earlier, there's 2 gigawatts worth of power capacity here. And really when you look at our analytics on it's about $20 million per 100 megawatt capacity. The math is easy there to see. We have 2 gigawatts times the 20. That's where we come up with $400 million in revenues. But again, understand that's only from that pipeline that we currently have in place. One thing that's happened for us since we uplisted, we uplisted in February this year onto the NYSE American. When that happened, we really got a lot of credibility as well as a lot of notoriety. So we've had additional developers come to us, and what they don't have is all the pieces to the puzzle.

They can't really take it across the line, get it financed, get it operational. That's why they come to us and they say, "Here, we'd love to have this go under the Bimergen portfolio." Again, all they're looking for is their development fees. We arrange it so they get paid their development fees usually over the first year. As soon as it's operational, then they're taken out of the situation, and we end up with 100% ownership of that project.

Okay, great. Also, Bob, can you touch a little bit upon how you intend to finance these projects? I know you've laid out what is a relatively capital-light business model, especially given the scale of the investment required for all the projects you have. With projects funded primarily at the project level with the help of substantial investment tax credits. Can you just talk a little bit about how that works?

Sure. Again, it's easiest to just use examples. When you talk about a typical 100-megawatt project, we say that project's going to cost about $125 million to really get it up and operational. That takes about a year. What we're saying there is, okay, we're going to do this with debt. What's interesting is there's several different ways to do it, and you'll see that we've actually hit on a couple different ways so far, and you'll see more in the future. What I mean by that is there's different types of debt. One that we did early on is a strategic debt that's initially for the upfront. What you have out here is the 80/20 rule, where about 20% needs to be, I'll call it skin in the game.

Then the other 80% is long-term debt. That's the larger banks that come in and saying, "Okay, we're going to give this debt to you at X percentage because we see the operations. You have an offtake agreement with a very large group that has a hedge and makes it there's very little risk for the long-term debt guy." The front term, that can be a strategic. An example is we use RELiON Battery. They are a battery manufacturer, so they love being involved where they put the money in first, get the construction going. They end up getting an $80 million-$85 million check from the larger bank for their batteries. Their piece gets taken out by the investment tax credit you were talking about.

As soon as we plug into the grid, which is about a year down the road, as I mentioned, that is when we can get up to 50% investment tax credit. That is monetized immediately. You do not have to use it. We have tax equity partners out there that can get us up to about $0.95 on the dollar for that.

Okay, great. Thank you. Just moving on a little bit. We are talking about turning the 2 GW of the pipeline you have into actual operating assets. You have assembled the 2 GW of battery storage projects, as we have mentioned a few times, across multiple U.S. markets. What are the key steps now that move a project from the development pipeline toward notice to proceed and ultimately into commercial operation? Where are you seeing the most momentum today?