Capstone Green Energy Continues Its Success in the EaaS Market With a New C800S Rental Contract for a Data Mining Operation in West Texas
Capstone Green Energy Corporation (NASDAQ: CGRN) has secured a 2-year rental agreement for an 800 kW microturbine system at a cryptocurrency data mining operation in West Texas. This initiative, part of its Energy as a Service (EaaS) growth strategy, is expected to be operational by mid-December. The contract emphasizes the rising demand from energy-intensive sectors such as cryptocurrency mining. Capstone aims to expand its rental fleet to 50 MW by March 2023, bolstering its profitability goals.
- New 2-year rental agreement for a cryptocurrency data mining operation.
- Expected commissioning of the system by mid-December.
- Expansion of rental fleet to approximately 40 MW, targeting 50 MW by March 2023.
- Higher profit margins from rental agreements compared to traditional sales.
- None.
The 800 kW Microturbine Rental System Will Provide Reliable Power Using the
“Capstone continues to expand its EaaS business, including its long-term rental program, which is an important element in reaching our profitability goals as rentals generate higher margins than traditional product sales. The rental program eases access to Capstone's premium product, allowing customers to enjoy the benefits of clean, low-cost, reliable power where capital is limited or competing for other critical capital uses. We are seeing demand from emerging and rapidly growing industries with intensive energy needs like cryptocurrency mining operations which affirms the attractiveness of Capstone’s EaaS approach and the growing size of our addressable market. With this latest contract, the Capstone microturbine rental fleet now stands at approximately 40 MW, with a goal of expanding to 50 MW by
Located on an oil and gas well, the customer approached
Cryptocurrency mining requires highly sophisticated computers, often in a data center, to solve complex computational mathematical problems. By their very nature, data centers 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.
"Capstone’s fuel flexibility and ability to perform without de-rating or maintenance issues on lower quality fuels won this project to replace reciprocating on-site generators. Capstone has a major advantage in the flared gas to crypto market. By harnessing the minimally processed field gases, fuel costs are minimized, allowing for substantial operational savings. Additionally, using otherwise wasted (flared) gases for bitcoin production minimizes the environmental impact of data mining activities,” said
About
To date, Capstone has shipped over 10,000 units to 83 countries and estimates that in FY22, it saved customers over
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
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 the Company's target for growth of its rental fleet 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 sufficiency of the Company's working capital to meet its rental fleet growth target; 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
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