Capstone Green Energy Corporation (NASDAQ:CGRN) Signs 10-Year Service Contract for Large Contract Manufacturer in Mexico
VAN NUYS, CA / ACCESSWIRE / May 5, 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 DTC Ecoenergia (www.dtc.mx), a Capstone distributor for Mexico, signed a new 10-year Factory Protection Plan (FPP) service contract for a 1-megawatt (MW) Capstone C1000 Signature Series microturbine (C1000S) installed in Mexico.
Commissioned in February 2020, the C1000S is owned and operated by a large international contract manufacturing company in Mexico. The system operates 24x7 in grid connect and provides approximately 63% of the plant's electricity demand. It is also configured as a Dual Mode system with Capstone's unique Seamless Transfer option. Seamless Transfer allows the system to quickly transition back and forth between grid-connected and stand-alone (island) operation, thereby nullifying any impact to production in the event of a grid outage. This capability is a critical customer requirement due to the poor reliability of the local utility.
The exhaust heat from the C1000S is captured and fed through an absorption chiller producing 400 refrigeration tons of cooling. This highly efficient trigeneration system (CCHP) has also enabled the factory to reduce its CO2 emissions by approximately 46%. In its first year of operation, the Capstone C1000S has maintained >96% availability with a target of 99% in the upcoming year.
The large international contract manufacturing company opted for Capstone's parts-only FPP contract, which will provide fixed scheduled and unscheduled spare parts costs for the next 10 years, providing protection from future parts price increases associated with replacement spare parts, commodity prices, and import tariffs.
"With this long-term maintenance contract at a global contract manufacturer, DTC now has a 24-megawatt fleet under Capstone long-term service contracts, with potential additional new contracts in the pipeline," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "This makes DTC's fleet our fourth-largest FPP service contract fleet globally and the largest FPP fleet in Latin America," concluded Mr. Foster.
"Long-term service agreements like this highlight the robust, recurring revenue business model enabled by Capstone's Energy as a Service (EaaS) offering, which is anchored by our long-term FPP service contracts, and are serviced by our high-quality global distributors like DTC Ecoenergia," stated Darren Jamison, President and Chief Executive Officer of Capstone Green Energy Corporation. "Additionally, the flexibility our microturbines can provide as a part of a broader on-site energy conversion project shows the value of Capstone Green Energy Solutions," concluded Mr. Jamison.
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.
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.
Capstone Green Energy
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Released May 5, 2021