Capstone Turbine Corporation (NASDAQ:CPST), the maker of clean-energy microturbines, announced Tuesday that it has landed an important follow-on order for one of the largest and most diversified midstream energy companies in the US.
The follow-on order for a Signature Series 800 kilowatt (kW) microturbine was secured by Horizon Power Systems, Capstone’s distributor for the western mountain states of the US and western Canada, the group said in a statement.
The C800 Signature Series stand-alone microturbine will run all-electric power equipment at a remote operation on locally available high-pressure natural gas. The firm said the microturbine was selected as the unit meets stringent air quality regulations for emissions, low maintenance intervals, and high reliability.
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The company noted that part of its mission is to help improve the oil and gas industry by offering cleaner and greener power solutions that reduce methane emissions while utilizing associated gas that would otherwise be flared into the atmosphere adding to global climate change.
During fiscal year 2019, Capstone reported that it saved end-use customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.
Demand for more greener power solutions comes amid a decline in the price of natural gas in the US, which has fallen to its lowest level in 20 years. US natural gas production has hit an all-time high this year as the shale oil and gas revolution keeps rolling on, the company said.
“Microturbines help midstream processing, storing, and transporting become green by using available associated gas to produce power while reducing gas flaring and site emissions,” said Jim Crouse, chief revenue officer for Capstone.
“Cost savings come from the fact that our microturbines can eliminate the need for utility power, thus providing two types of green.”
Natural gas boom
This boom in natural gas production has affected the economy of every state, from Ohio and Pennsylvania to Texas, Oklahoma, Colorado and the Dakotas. As a result, the US is now the Saudi Arabia of natural gas and is exporting more throughout the world than at any previous time in its history, Capstone said.
“It's hard to believe that a decade ago, we were importing natural gas. Thanks to fracking and horizontal drilling technologies that are continually becoming more efficient, we now have hundreds of years of supply of low-cost natural gas,” said Capstone CEO Darren Jamison.
“Low-cost natural gas is key to energy-intensive U.S. industrial companies that need to compete on a global basis against lower-cost countries like China, India or Mexico.”
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.
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