Capstone Green Energy Continues To Show Strong Growth in Malaysia With Order From Leading Independent Upstream Oil and Gas Company

Rhea-AI Summary

Capstone Green Energy Corporation (NASDAQ: CGRN) announced an order for two 65 kW microturbine systems from a major upstream oil and gas company for deployment at an unmanned offshore platform in Malaysia. The systems, supplied by exclusive distributor Sekito, will be commissioned in Fall 2023. This follows another order from Ractive Engineering for a similar application in Trinidad. The ATEX-certified microturbines will enhance energy resiliency while reducing carbon emissions, providing a cleaner and reliable power source for offshore operations.

Positive

• Secured an order for two 65 kW microturbines from a leading oil and gas company.
• Microturbines will enhance power availability on the offshore platform.
• Expected commissioning in Fall 2023 boosts future revenue.
• Capstone's technology improves energy resiliency and reduces carbon footprint.

Negative

• None.

Two C65 kW ATEX Systems Will Provide Prime Power to an Unmanned Platform

LOS ANGELES--(BUSINESS WIRE)-- Capstone Green Energy Corporation (NASDAQ: CGRN), a global leader in carbon reduction and on-site resilient green energy solutions, announced that Sekito, Capstone's exclusive distributor in Malaysia and Brunei, has secured an order for two 65 kW systems from a leading independent upstream oil and gas company. The microturbines will be deployed at an unmanned offshore platform on the northwest coast of Malaysia. The microturbines systems are expected to be commissioned in Fall 2023.

The latest win in Malaysia comes on the heels of Capstone's distributor Ractive Engineering in Trinidad and Tobago, who also recently secured an order for two C65 ATEX-certified microturbine systems providing a reliable power source for an unmanned gas platform located on the eastern coast of Trinidad.

"For major oil and gas companies with unique power generation requirements on offshore platforms, Capstone microturbine systems solve multiple challenges at once. Our technology operates reliably with minimal maintenance while improving energy resiliency for critical infrastructure, all while lowering the carbon footprint of these sites," said Darren Jamison, Chief Executive Officer of Capstone Green Energy. "This combination of reliability, resilience, and decarbonizing energy production is appealing to our oil and gas customers and across the various industries, as evidenced by our recent orders."

The ATEX-certified microturbines will serve as the primary power source for the unmanned drilling platform and allow the operator to increase on-platform power availability. Often used for oil and gas exploration and production, Capstone's ATEX-certified systems are designed to meet the unique requirements for offshore applications, which includes superior corrosion protection and other optional features. The new system will replace an obsolete Calnetix Power Solutions TA100 microturbine currently at the site.

The new microturbine systems will run on raw associated gas released from the wellhead, providing a highly reliable power source to the entire platform. As a result, the installation will be fully automated and operate remotely. The microturbines do not require oil or lubricants to operate, and they deliver power via state-of-the-art power electronics. This translates into higher equipment availability and longer maintenance intervals, providing a significant performance advantage when compared to traditional reciprocating engines.

"We are dedicated to finding smart, practical, and environmentally friendly ways to use energy to provide effective solutions for our customers. Our focus is on providing power generation and control systems, service, and support to our customers," said Mohd Azam, Managing Director of Sekito.

About Sekito

Sekito was established to fulfil the demand for power generation and control solutions to major industries, especially in the oil and gas sector. Our core business of power generation solutions utilizes Capstone Microturbines, which are primarily used in oil and gas applications for unmanned platforms to deliver continuous power using the wellhead gas supply. Sekito's other business lines include Electrical Panel and System Integration Services for all Low-Voltage Panel Ratings. Our range of services include design, fabrication, installation, commissioning, testing and maintenance.

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221012005454/en/

Capstone Green Energy

Investor and investment media inquiries:

818-407-3628

ir@CGRNenergy.com

Source: Capstone Green Energy Corporation

FAQ

What is the latest order secured by Capstone Green Energy Corporation?

Capstone Green Energy secured an order for two 65 kW microturbine systems for an unmanned offshore platform in Malaysia.

When will the new microturbine systems be commissioned?

The two microturbine systems are expected to be commissioned in Fall 2023.

Who is the distributor for Capstone in Malaysia?

The exclusive distributor for Capstone in Malaysia is Sekito.

What are the benefits of Capstone's microturbines for oil and gas companies?

Capstone's microturbines provide reliable power, improve energy resiliency, and reduce the carbon footprint of offshore operations.

What type of power source will the microturbines use?

The microturbines will run on raw associated gas released from the wellhead.