Capstone Green Energy (NASDAQ: CGRN) Signs 20-Year Parts & Labor Service Contract on an 800KW Energy System Installed at a Premier Hotel in Jamaica
Capstone Green Energy Continues to Expand its Energy as a Service Business
VAN NUYS, CA / ACCESSWIRE / January 11, 2022 / Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN), ("Capstone", the "Company", "we" or "us"), a global leader in carbon reduction and on-site resilient green energy as a service (EaaS) solutions, announced today that Innovative Energy Company Limited (IEC), the exclusive Capstone distributor for Jamaica (www.ieclja.com), signed a 20-year Parts & Labor Factory Protection Plan (FPP) service contract for a C800S, 800 kilowatt (kW), Signature Series Capstone energy system installed at a premier hotel in Jamaica.
Capstone Green Energy continues to expand its Energy as a Service (EaaS) business, including its industry-leading FPP long-term comprehensive service product and its long-term rental program, both of which are important elements to Capstone achieving its near-term profitability goals as service contracts and rentals agreements generate higher contribution margin rates than traditional product sales.
The 225-room hotel commissioned the Capstone 800 kW energy system in June 2020 as they sought to reduce their energy costs by employing a Capstone Energy System tri-generation solution. The CCHP application has a project design efficiency of 83%. The Capstone C800S provides more than 95% of the hotel's annual electrical energy, 100% of the hotel's domestic hot water, and 80% of the hotel's peak cooling demand by utilizing the exhaust gas. With Casptone's energy system the hotel is reducing its annual energy costs while also reducing its greenhouse gas emissions. The C800S is also configured as Dual-Mode with integrated battery packs, which will allow the hotel to continue to operate in the event of a local grid outage.
Capstone's industry-leading FPP long-term comprehensive service product is designed to provide complete service coverage, parts and labor for both scheduled and unscheduled maintenance for the next 20-years and protect the end-use customer from future cost increases associated with labor, replacement spare parts pricing, commodities, import tariffs, and interest rates.
"Now is the time to prepare for more intense weather events ahead as climate change is affecting everyone on a global scale. Meeting the customer's operational needs for a stable power supply in a region impacted by severe weather while providing significant financial savings through a long-term full-coverage service contract is key to what Capstone Green Energy brings to the energy market," said Tracy Chidbachian, Director of Customer Service.
"The 2021 Atlantic hurricane season was the third most active hurricane season on record with storms getting stronger and lasting longer, resulting in short and long-term physical and economical damages. In most cases, the unpredictable and severe weather results in extended grid outages," said Darren Jamison, Chief Executive Officer of Capstone Green Energy. "A Capstone on-site energy system reduces the operational risks of grid outages and is designed to provide resiliency and reliability by providing continuous operation, making the Capstone high efficiency and low emission energy system the ideal solution in the Caribbean," 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 fiscal 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 January 11, 2022