Capstone Green Energy Corporation on Nasdaq: CGRN
Capstone Green Energy Corporation on Nasdaq: CGRN
Capstone Is Focused On Growing the EaaS Business Model as Quickly as Possible Because It Provides Higher Margins, More Constant and Predictable Revenue Streams
LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Corporation (NASDAQ: CGRN) has secured several new Energy-as-a-Service (EaaS) rental contracts, pushing its total of rented or under contract to 39 MW. The Company expects it will reach its 50 MW target by March 31, 2023.
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EaaS Contract Growth Chart
These new contracts represent the continued expansion of the EaaS strategy and is indicative of ongoing customer demand. These most recent wins demonstrate the Company is on track with its vision to create economically attractive, smarter energy solutions and builds on its track record of enabling its customers to save $911 million in energy costs and approximately 1,503,100 tons of carbon emissions over the last four years.
“Capstone is seeing ongoing strong customer demand across multiple industries for its EaaS long-term rental services. The growth has been robust, with 7 MW under contract in March 2021 and 26 MW under contract in March 2022. Today EaaS agreements are approaching 40 MW,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “I am confident we will meet our strategic goal of 50 MW by March 31, 2023, as we continue to manage customer delivery dates and navigate the global supply chain,” added Mr. Jamison.
“The EaaS business is a critical cornerstone of our strategic plan as it provides higher margins, more constant and predictable revenue streams, and allows for a more streamlined staffing model than a traditional industrial manufacturing company. Additionally, this service is in high demand as it helps customers manage capital costs and meet their environmental impact targets,” stated Scott Robinson Capstone Green Energy Interim Chief Financial Officer.
“As part of this growth initiative, Capstone management has reduced operating costs and modified the operating model, while not losing sight of the goal of expanding its EaaS business. In order to meet demand and optimize capital, the Company has developed a “re-rent” strategy, enabling it to quickly accelerate the growth in EaaS rentals in a capital efficient manner. When we “re-rent” a unit it means we are taking an existing customer’s pre-owned microturbine unit that is not being utilized and deploying it into our growing EaaS customer base,” concluded Robinson.
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) are 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.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding achievement of its EaaS MW target, 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 that the Company will be unable to meet its 50 MW EaaS target by March 31, 2022, uncertainties and other factors, including, but not limited to, the following: global supply chain constraints, 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.
Capstone Green Energy
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Source: Capstone Green Energy Corporation
Released October 31, 2022