Capstone Green Energy Corporation (CGRN), announced that Lone Star Power Solutions, Capstone’s exclusive distributor in Texas, Arizona, and the Gulf States, secured an Energy-as-a-Service (EaaS) long-term rental order for five C1000 Signature Series microturbines. The microturbines will be installed at a remote oil and gas production site in West Texas and are expected to be commissioned in May.
The new 5 MW EaaS rental contract pushes Capstone Green Energy’s total EaaS contracts to approximately 50 MW, which achieves the Company’s stated goal of 50 MW under contract by March 31, 2023, and is up from 26 MW under contract less than a year ago.
“Capstone’s EaaS business model continues to drive customer demand for our products, as demonstrated by this order. The oil and gas industry have seen the benefits of Capstone microturbines for many years, and renting units through our EaaS approach makes adopting our technology even easier,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “Our focus remains on our EaaS rental business deployment and the attributes it brings us, including higher margin rates, predictable revenues, and positive cash flow while transitioning us away from being only a manufacturing company,” added Jamison.
Capstone microturbines are used across oil and gas applications – upstream, midstream, and downstream because they offer flexible, responsive power generation that can easily adjust to fluctuating or seasonal energy demands, reducing fuel usage and maintaining high levels of efficiency. They can also be powered by on-site production gas, like these units will be, eliminating the need for a secondary fuel source. This helps Capstone customers meet their environmental and operational goals.
“This customer approached us with the challenge of improving operational reliability while at the same time reducing their greenhouse gas emissions,” said Doug Demaret, President of Lone Star Power Solutions. “Replacing reciprocating engines with Capstone Green Energy microturbines allowed them to do both with the added benefit of reduced trips to the site due to our market-leading low preventative maintenance requirements.”
