Capstone Turbine Increases Presence in African Oil and Gas Market With Two Megawatt Order for Offshore Platform
CHATSWORTH, Calif., Sept. 18, 2014 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for two C1000 microturbines for an offshore oil and gas platform in Africa.
According to the International Energy Agency (IEA), Africa is expected to consume 4.5 million barrels of oil a day by the year 2020, up 29% from today. This is more than twice the IEA's projection for Asia and nearly four times the world-wide rate. Also, according to KPMG Africa, Africa's proven oil reserves accounted for 10% of the world in 2012, or roughly 130 billion barrels. These facts highlight the large demand for, and production of, oil and gas in Africa.
Capstone microturbines are an ideal fit for oil and gas operations around the world. Based on patented air bearing technology, the microturbines do not require coolants or lubricants. This means that the machines have higher levels of availability and operate for longer periods of time between maintenance intervals when compared to reciprocating engines.
The two C1000s will run on flare gas to power artificial lift equipment, more specifically electrical submersible pumps that are used to increase oil production. The artificial lift market was more than $9.2 billion in 2012 and is forecasted to grow to $16 billion in 2018. Africa and the Middle East are expected to represent 13% of this growth year over year.
Additionally, Capstone microturbines are very reliable and rugged machines, providing on-site power generation in the harshest climates ranging from the frigid tundra of Mongolia to the deserts of the Middle East. Offshore oil and gas platforms cannot have a loss of power without potentially disastrous results. Therefore, an increasing number of oil and gas operators are choosing the reliability of Capstone's microturbines to ensure their businesses stay operational in these tough conditions.
"We are delighted to see the further expansion of our footprint in the African oil and gas market," said Jim Crouse, Executive Vice President of Sales and Marketing at Capstone Turbine. "By leveraging our demonstrated success in oil and gas operations around the world, we are able to meet the demanding requirements of oil and gas operators in challenging environments such as Africa."
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) is the world's leading producer of low-emission microturbine systems and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped approximately 7,000 Capstone Microturbine systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York Metro Area, United Kingdom, Mexico City, Shanghai and Singapore.
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This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the African oil and gas market. Forward-looking statements may be identified by words such as "expects," "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.
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Released September 18, 2014