Rented by an Oil & Gas Producer, Industrial Agricultural and Industrial Plastic Company
VAN NUYS, CA / ACCESSWIRE / June 23, 2021 / Capstone Green Energy Corporation(www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) ("Capstone" or the "Company"), announced today that it continues to expand its long-term microturbine rental business as part of its growing Energy as a Service (EaaS) business model, with an additional 1.1 megawatt (MW) of new long-term rental contracts. As a result, Capstone also announced today that it has expanded its low emission microturbine rental fleet from 10.6 MW to 12.1 MW.
The first of the new long-term rental contracts is a five-year rental agreement for a new C200 Signature Series slated for a local independent oil and gas producer focused on mature field revitalization, acquisitions, and exploration. The company optimizes and develops existing and acquired assets, and also implements thermal enhanced oil recovery and other technologies to expand existing oil production. This contract was secured by Capstone's local distribution partner, Cal Microturbine, Capstone's exclusive distributor for California, Hawaii, and Nevada and nonexclusive for Oregon and Washington (www.calmicroturbine.com).
The second long-term rental contract is a minimum five-month rental contract for a C800S for a new industrial agricultural operation. This rental agreement was secured by Capstone's new Direct Solutions Sales organization. The five-month rental was pre-paid and was commissioned in mid-June.
The third rental contract is a one-year rental of a C65 for an industrial plastic company looking to utilize waste gas from a plastic recycling process. "If the C65 rental system operates satisfactorily on this off-spec gas, the customer has additional gas it's not using at multiple other locations," stated Jim Crouse, Capstone Green Energy, Chief Revenue Officer. "The rental program offers a unique and efficient method to test customer's off-spec fuels that will allow us to determine applicability and durability in a fraction of the time it's taken us in the past," added Mr. Crouse.
Like Capstone Green Energy, all three customers are committed to health, safety, and environmental excellence. Leveraging Capstone Green Energy's innovative microturbine technology will help all three companies save money and reduce their carbon footprint.
"Expanding Capstone's Energy as a Service business, which includes the long-term rental program, is an important element for the Company achieving its strategic goals. Capstone is an eminent green energy company, having focused for a long time on transforming the way businesses think about on-site energy production," said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy.
"Growing our rental fleet is a key part of the business plan that we developed in conjunction with amending the Goldman Sachs Note Purchase Agreement on October 1, 2020, which includes the strategic expansion of the long-term rental fleet from 8.6 MW to 21.1 MW by March 2022," said Eric Hencken, Chief Financial Officer of Capstone Green Energy. "Long-term rentals are a key to our future financial success as the recurring revenue stream they generate improves our gross margin and expense absorption," concluded Mr. Hencken.
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 Conversion Products 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 Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company's microturbine energy systems.
For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.
For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.
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.
CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com
SOURCE: Capstone Green Energy
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https://www.accesswire.com/652762/Capstone-Green-Energy-NASDAQCGRN-Secures-Three-New-Rentals-and-Announces-Expansion-of-Its-Rental-Fleet-From-106-MW-to-121-MW
