Reaches Goal of 21.1 MW Under
Contract
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 its southern U.S.
Distributor, Lone Star Power Solutions
(www.lonestarpowersolutions.com), has contracted with a remote data
center in Louisiana to provide a 5-year rental of a Capstone C1000S
microturbine system. This system is the second C1000S to be
commissioned at this remote data center, with the first system
having been commissioned back in October 2021.
Capstone Green Energy continues to expand its Energy as a
Service (EaaS) business, including its long-term rental program,
which is an important element in achieving its profitability goals
as rentals generate higher contribution margin rates than
traditional product sales. With this latest contract, the Capstone
contracted rental fleet now stands at 21.1 MW. By offering
customers Energy as a Service, Capstone Green Energy is
strengthening its commitment to creating smarter energy for a
cleaner future, as carbon reduction continues to have
ever-increasing value to global customers.
This customer, which is located on an oil and gas well and
handles large volume blockchain and cryptocurrency mining,
approached Lone Star looking for an innovative way to take
advantage of their existing on-site production gas, a byproduct
that would otherwise go to waste. Because Capstone microturbines
are designed to offer fuel flexibility, the system will use the
waste gas, essentially as free fuel, a benefit that not only
reduces emissions but also offers operational savings. Further, the
added reliability and low maintenance requirements of
microturbine-based systems make them an ideal solution for remote
locations, which can be hard to reach and often deal with
challenging climate conditions.
Cryptocurrency mining is the process by which new crypto “coins”
are entered into circulation. Their production requires highly
sophisticated computers, often in a data center, to solve complex
computational math problems. By their very nature, data centers,
like the one in Louisiana, require tremendous amounts of
electricity. At a time when the utility grid is strained due to
extreme weather, aging infrastructure, and inadequate transmission,
on-site power provides a resilient alternative for energy-intensive
facilities.
“The operational success of the first unit installed last
October and its ability to operate on a wide variety of fuel
sources was an integral part of our customer’s decision to add a
second unit,” said Doug Demaret, President of Lone Star Power
Solutions. “Capstone’s innovative products allow Lone Star Power
Solutions to provide its customers with 100% uptime, extremely low
emissions, and infrequent visits under the harshest conditions,
allowing our customers to focus on their core business.”
“We are now seeing multiple customers in this relatively new
industry taking progressive steps to address their energy use, and
using an existing waste stream as a fuel source is brilliant in my
opinion,” said Darren Jamison, President and Chief Executive
Officer of Capstone Green Energy. “Doing so not only dramatically
reduces emissions but also provides the customer with essential
operational benefits like added power security and reduced
maintenance costs,” 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.
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 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.
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Capstone Green Energy Investor and investment media inquiries:
818-407-3628 ir@CGRNenergy.com
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