Capstone Green Energy Secures Follow-on Order From Leading Oil and Gas Customer in the Marcellus Shale Region in Appalachia
New Order Adds to the Customer’s Extensive Fleet of Microturbines
LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Corporation (NASDAQ: CGRN) announced that E-Finity Distributed Generation, Capstone’s long-time distributor for the Mid-Atlantic, Southeastern United States and the Caribbean, has secured a follow-on order for two C200S Microturbines from a leading oil and gas producer. The systems will be deployed in the heart of the Marcellus Shale Play in Appalachia and add to an extensive fleet of microturbine energy systems. The order is scheduled to be commissioned in the summer of 2023.
“Remote locations lacking grid connectivity are a perfect use-case for Capstone’s microturbines, as our oil and gas industry customers continue to demonstrate. In addition to providing the reliable electricity they are looking for to operate their equipment, Capstone’s low-emissions microturbines also help customers meet their emissions reduction targets. We appreciate the confidence that repeat customers continue to place in our team and technology,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy.
The C200S microturbines, fueled by wellhead natural gas extracted directly from the pipeline, will provide primary electrical power at two separate Appalachia gas compression sites where no electricity is currently available. The microturbines will act as the primary power source for these remote sites while keeping site emissions ultra-low.
Compressor stations assist in transporting natural gas from supply points to end users. As natural gas safely moves through pipelines over long distances, friction and elevation differences slow the movement of the gas and reduce pressure. Compressor stations keep the pipeline pressurized and the natural gas flowing. These sites are often unmanned, and in remote locations, any failure usually results in the station going offline. A prolonged interruption can be the difference between profit and loss. With this much at stake, having reliable power in place is essential to operational efficiency.
The customer continues to select Capstones microturbines based on their proven field reliability, remote monitoring and diagnostic capabilities, and high availability with partial load redundancy. The microturbines will allow the customer to increase on-site power production, lower operational costs and increase reliability.
“All our Marcellus and Utica Shale customers are pleased with not only power performance but the 24x7 uptime operations delivered by Team E-Finity. Repeat business from our key customers is a complement to our team’s ability to deliver power when needed and where needed,” said Jeff Beiter, President and Chief Executive Officer of E-Finity Distributed Generation. “These units will boost production and flow of clean-burning, abundant natural gas from one of the world’s largest natural gas fields,” concluded Mr. Beiter.
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 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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Source: Capstone Green Energy Corporation
Released January 24, 2023