Capstone Green Energy Received Follow-on EaaS Rental Order for 30 C65 Microturbines From a Major Oil & Gas Producer
Units Will Provide Approximately 2 MW of Reliable Power at Well Sites Across New Mexico
LOS ANGELES, January 19, 2023--(BUSINESS WIRE)--Capstone Green Energy (NASDAQ:CGRN), announced that Horizon Power Systems, the company’s exclusive Distributor for the Rocky Mountains in the U.S. and Western Canada, has secured an Energy as a Service (EaaS) long-term rental agreement for 30 Capstone C65 microturbines to be installed at 15 new and remote well sites throughout the San Juan Basin in New Mexico. The EaaS contract from this midstream oil and gas company adds to the customer’s current owned fleet of 45 microturbines in operation, the first of which were commissioned in 2015.
The new energy systems feature two high pressure natural gas-fueled microturbines per site and will provide power to Lease Automatic Custody Transfer (LACT) units, which are used to transport crude oil from the production site to a central storage facility. Located throughout the 24,000 square mile basin, the well sites are extremely remote. Power reliability was a key factor in the customer’s continued investment in microturbines, which are known for their efficient performance and low maintenance requirements in addition to their ability to withstand harsh weather conditions.
To ensure the systems maintain peak performance throughout the life of the rental, the customer also signed a Factory Protection Plan (FPP), Capstone’s service program designed to minimize downtime and lock in all maintenance costs.
"Our midstream oil and gas customer knows the dependability of Capstone Green Energy microturbines," said Sam Henry, President of Horizon Power Systems. "The combination of microturbines’ reliability and low operating costs make them ideal for a long-term rental and Factory Protection Plan. Capital outlay to build and launch 15 new remote well sites can be significant. By entering into an EaaS rental agreement for the microturbines, they will lower capital expenses while still getting the benefits of microturbines."
"In addition to providing ultra-reliability to these typically remote, unmanned sites, microturbines have the added benefit of producing very low emissions," said Darren Jamison, Chief Executive Officer of Capstone Green Energy. "Now that several states are starting to require oil and gas companies to make emissions reductions, microturbines are proving to be an attractive option. Add to that the Capstone’s flexible own or Energy as a Service options, and they become an ideal solution to modern energy challenges."
About Horizon Power Systems
For over 20 years, Horizon Power Systems has worked exclusively with Capstone Green Energy to provide microturbine systems across the Rocky Mountain States and in Western Canada. It has installed over 1,000 microturbines that have logged millions of documented runtime operating hours. Whether for CHP, trigeneration (CCHP), microgrids, or prime power, the Horizon Power Systems team customizes each microturbine system to meet the customer's unique power and sustainability needs.
About Capstone Green Energy
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Generation Technologies (EGT) is driven by the Company's industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Solutions (ESS) business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen & Sustainable Products (H2S), Capstone Green Energy offers customers a variety of hydrogen products, including the Company's microturbine energy systems.
To date, Capstone has shipped over 10,000 units to 83 countries and estimates that in FY22, it saved customers over $213 million in annual energy costs and approximately 388,000 tons of carbon. Total savings over the last four years are estimated to be approximately $911 million in energy savings and approximately 1,503,100 tons of carbon savings.
For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.
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This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company's growth strategy and other statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as "expect," "anticipate," "believe," "could," "should," "estimate," "intend," "may," "will," "plan," "goal" and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company's indebtedness; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company's ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
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