Units Will Provide Approximately 2 MW of Reliable Power at Well Sites Across New Mexico
Capstone Green Energy (NASDAQ:CGRN), announced that Horizon Power Systems, the company’s exclusive Distributor for the Rocky Mountains in the U.S. and Western Canada, has secured an Energy as a Service (EaaS) long-term rental agreement for 30 Capstone C65 microturbines to be installed at 15 new and remote well sites throughout the San Juan Basin in New Mexico. The EaaS contract from this midstream oil and gas company adds to the customer’s current owned fleet of 45 microturbines in operation, the first of which were commissioned in 2015.
The new energy systems feature two high pressure natural gas-fueled microturbines per site and will provide power to Lease Automatic Custody Transfer (LACT) units, which are used to transport crude oil from the production site to a central storage facility. Located throughout the 24,000 square mile basin, the well sites are extremely remote. Power reliability was a key factor in the customer’s continued investment in microturbines, which are known for their efficient performance and low maintenance requirements in addition to their ability to withstand harsh weather conditions.
To ensure the systems maintain peak performance throughout the life of the rental, the customer also signed a Factory Protection Plan (FPP), Capstone’s service program designed to minimize downtime and lock in all maintenance costs.
“Our midstream oil and gas customer knows the dependability of Capstone Green Energy microturbines,” said Sam Henry, President of Horizon Power Systems. “The combination of microturbines’ reliability and low operating costs make them ideal for a long-term rental and Factory Protection Plan. Capital outlay to build and launch 15 new remote well sites can be significant. By entering into an EaaS rental agreement for the microturbines, they will lower capital expenses while still getting the benefits of microturbines.”
“In addition to providing ultra-reliability to these typically remote, unmanned sites, microturbines have the added benefit of producing very low emissions,” said Darren Jamison, Chief Executive Officer of Capstone Green Energy. “Now that several states are starting to require oil and gas companies to make emissions reductions, microturbines are proving to be an attractive option. Add to that the Capstone’s flexible own or Energy as a Service options, and they become an ideal solution to modern energy challenges.”
About Horizon Power Systems
For over 20 years, Horizon Power Systems has worked exclusively with Capstone Green Energy to provide microturbine systems across the Rocky Mountain States and in Western Canada. It has installed over 1,000 microturbines that have logged millions of documented runtime operating hours. Whether for CHP, trigeneration (CCHP), microgrids, or prime power, the Horizon Power Systems team customizes each microturbine system to meet the customer's unique power and sustainability needs.
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) is 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.
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