Capstone Green Energy Secures New Orders From Alaskan Distributor Arctic Energy for a Major Oil Field Project and Two Offshore Platforms
LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Corporation (NASDAQ: CGRN), announced that Arctic Energy, Capstone’s authorized distributor in Alaska, has received new orders from two leading oil and gas operators. The first order is for a C600S microturbine to power a major oil and gas production site in the North Slope of Alaska. The second order is for two C65 offshore microturbines for use on offshore platforms in Alaska’s Cook inlet. The C600S order is scheduled to be commissioned in the summer of 2023, while the C65s will be commissioned in the fall.
“Oil and gas industry participants continue to see the value of Capstone Green Energy microturbine technology. Fuel flexibility, superior engineering, and a lower emissions profile make Capstone turbines a compelling choice for these discerning customers. In addition, the low maintenance requirements of the Capstone generation systems are ideal for often remote and harsh locations where these customers need power,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy.
Fueled by wellhead natural gas extracted directly from the pipeline, the C600S microturbine will provide primary electrical power to the site’s production facility, operating center, seawater treatment plant, and pipelines. The microturbines will be deployed as part of the initial phase of the development project with the potential for future orders. Once developed, the oilfield is expected to significantly boost oil flow in the trans-Alaska pipeline, which has fallen about 75% from its peak in the late 1980s.
The customer, a leading global oil and gas producer, selected Capstone microturbine-based systems because of their demonstrated ability to lower operating costs while also requiring significantly less maintenance. Capstone’s innovative microturbine technology was selected for the project over other traditional generator manufacturers based on its proven ability to deliver reliable, clean power in the field and superior product engineering.
The two C65 offshore systems will be deployed at unmanned oil and gas platforms for one of the country's premier independent exploration and production companies. This order adds to a growing global fleet of offshore microturbines.
These orders underscore Capstone's low-emission, durable, and highly efficient microturbines as the preferred choice for around-the-clock production and optimized site performance. Capstone's low maintenance requirements ensure a higher availability than many of its competitors and reduce operational costs over the 20-year life cycle of the product.
“As oil and gas production in Alaska sees new heights, Capstone’s technology is an integral part of an environmentally conscious plan for resource development,” said Greg Porter, President of Arctic Energy. “These units will boost production and flow of clean-burning, abundant natural gas from one of the world’s largest natural gas fields,” added Porter.
Capstone microturbines can be used in all phases of oil and gas production, including upstream, midstream, and downstream operations in both onshore and offshore applications. Since many of these operations are situated in remote locations, Capstone microturbines align perfectly with the needs of oil and gas businesses to ensure they are successful in bringing natural gas to market.
About Capstone Green Energy
Capstone Green Energy (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) 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 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.
For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com.
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 growth expectations 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 integration of the new chief financial officer into our management team and his success in developing and executing financial strategies; 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 departures and other changes in management and other key employees. 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.
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Released March 13, 2023