Capstone Turbine (NASDAQ:CPST) Secures Follow-On Sale from Premier Oil & Gas Producer in Southern California
600kW Microturbine Will Provide Prime Power and Reduce Operational Costs
VAN NUYS, CA / ACCESSWIRE / July 13, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it closed a follow-on sale of a C600 Signature Series (C600S) microturbine from a premier Southern California oil and gas producer. Cal Microturbine, Capstone's exclusive distributor in California, Hawaii and Nevada and non-exclusive in Washington and Oregon (www.calmicroturbine.com) secured the order, which is expected to be commissioned this fall.
"Despite the significant COVID-19 impact on oil prices, we continue to see activity in the midstream oil and gas markets as customers look to lower operating costs and decarbonize the oil fields," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine. "The natural resource market represented 32% of our total revenue last year as we continue to receive follow-on orders from repeat customers. These customers are opting to convert from reciprocating engine-based technologies to lower emission and higher reliability microturbine-based solutions," added Mr. Jamison.
The follow-on C600S microturbine order adds an additional 600 kilowatts (kW) of generation capacity to the customer's existing Capstone fleet. The microturbines, fueled by minimally processed wellhead gas, will produce electricity and provide prime power for the end-user's Southern California location and on-site equipment. Capstone's microturbines can run on a wide range of fuels with various BTU content, requiring minimal treatment when compared to reciprocating engines, helping reduce the overall cost of the project while improving system reliability.
The C600S microturbine system will ship this summer in a four-bay enclosure that allows the customer to add an additional 200 kW microturbine and expand on-site generation capacity from 600 kW to 800 kW as more associated gas becomes available in the future.
The customer, a leading oil and gas producer in the United States, selected Capstone microturbines again because of their demonstrated ability to lower operating costs while also requiring significantly less maintenance. Capstone microturbines are recognized in the industry for their proven reliability in the field and superior product engineering.
"The combination of Capstone's high reliability, redundant architecture, and Cal Microturbine's excellent service support allows customers to rely on utility demand charge reduction to improve utility savings beyond what other self-generation technologies promise to deliver," said Kenda Brown, President of Cal Microturbine. "We look forward to supporting the growing power needs of the customer as site needs expand," concluded Mrs. Brown.
This order underlines Capstone's low emission, durable, and highly efficient microturbines as the preferred choice for around-the-clock production and optimized site performance. Capstone's low maintenance requirements ensure a higher availability than many of its competitors and also reduce operational costs over the 20-year life cycle of the product.
Capstone microturbines can be used in all phases of oil and gas production, including upstream, midstream, and downstream operations in both onshore and offshore applications. Since many of these operations are situated in remote locations, Capstone microturbines align perfectly with the needs of oil and gas businesses to ensure they are successful in bringing natural gas to market.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today's multi-technology distributed power generation projects.
For customers with limited capital or short-term needs, Capstone offers rental systems, for more information, contact: email@example.com. To date, Capstone has shipped nearly 10,000 units to 83 countries and in FY20, saved customers an estimated $219 million in annual energy costs and 368,000 tons of carbon.
This press release contains "forward-looking statements," as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as "expects," "believes," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
Capstone Turbine Corporation
Investor and investment media inquiries:
Integra Investor Relations
Shawn M. Severson
SOURCE: Capstone Turbine Corporation
View source version on accesswire.com:
Released July 13, 2020