Capstone Turbine Corporation (NASDAQ:CPST) announced Thursday that a university in Washington, DC, has signed a nine-year Factory Protection Plan (FPP) long-term service contract covering the C1000S ICHP (Integrated Combined Heat and Power) trigeneration solution system.
The Capstone C1000S with integrated heat recovery modules was originally shipped in February 2019 and was commissioned in December. E-Finity Distributed Generation, Capstone’s exclusive distributor for the Mid-Atlantic and Southeastern US and the Caribbean, secured the deal.
The Capstone said its solution is used for 24x7 electrical and thermal generation and is configured as Dual Mode (capable of providing back-up power to critical loads in the event of a grid outage). The university also installed two 100-ton absorption chillers that enable them to simultaneously produce electricity, heat and cooling thermal energy, making it an extraordinary trigeneration solution.
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The unnamed university, which is more than a century old, selected the Capstone C1000S ICHP factory-integrated power package primarily due to its clean energy initiatives and energy resiliency requirements.
Capstone said the nine-year FPP provides complete service coverage, including scheduled and unscheduled maintenance, and also includes E-Finity’s advanced remote monitoring system.
“This contract award with Capstone’s own integrated heat recovery modules is the direct result of investments in new product development made several years ago and is intended to open up new markets, reduce project installation costs and reduce the overall energy equipment footprint,” said Jen Derstine, Capstone’s vice president of marketing and distribution.
CEO Darren Jamison noted that the “continued growth of our FPP long-term service contract business as both programs are an important part of Capstone’s near-term profitability strategy.
“These types of microturbine solutions with integrated Capstone-supplied accessories, coupled with a long-term service agreement, are expected to benefit both Capstone and the end-use customer jointly, making it truly a long-term win-win partnership, which is the foundation of our energy as a service business model.”
Capstone, based in Van Nuys, California, offers a product line-up of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.
The company's stock recently traded 3.2% higher to $3.19 a share in New York.
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