Capstone Green Energy Corporation (NASDAQ:CGRN) Signs 10-Year Service Contract for Large Contract Manufacturer in Mexico

Rhea-AI Summary

Capstone Green Energy Corporation (NASDAQ:CGRN) has entered into a 10-year Factory Protection Plan (FPP) service contract with DTC Ecoenergia for a 1 MW Capstone C1000 Signature Series microturbine in Mexico. This system, operational since February 2020, supplies approximately 63% of the electricity demand for a major contract manufacturer. The contract will stabilize parts costs and enhance service reliability. The C1000S has achieved over 96% availability in its first year, with CO2 emissions reduced by about 46%. This agreement reinforces Capstone's recurring revenue model and expands its service fleet significantly.

Positive

• 10-year FPP service contract signed, ensuring stable costs for spare parts.
• C1000S microturbine supplies 63% of the electricity demand, enhancing operational efficiency.
• Achieved >96% availability in the first year with a target of 99% for the next year.
• Reduced CO2 emissions by approximately 46%, showcasing environmental benefits.
• DTC Ecoenergia's fleet becomes Capstone's fourth-largest globally, enhancing market position.

Negative

• None.

VAN NUYS, CA / ACCESSWIRE / May 5, 2021 / Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ: CPST) ("Capstone" or the "Company"), announced today that DTC Ecoenergia (www.dtc.mx), a Capstone distributor for Mexico, signed a new 10-year Factory Protection Plan (FPP) service contract for a 1-megawatt (MW) Capstone C1000 Signature Series microturbine (C1000S) installed in Mexico.

Commissioned in February 2020, the C1000S is owned and operated by a large international contract manufacturing company in Mexico. The system operates 24x7 in grid connect and provides approximately 63% of the plant's electricity demand. It is also configured as a Dual Mode system with Capstone's unique Seamless Transfer option. Seamless Transfer allows the system to quickly transition back and forth between grid-connected and stand-alone (island) operation, thereby nullifying any impact to production in the event of a grid outage. This capability is a critical customer requirement due to the poor reliability of the local utility.

The exhaust heat from the C1000S is captured and fed through an absorption chiller producing 400 refrigeration tons of cooling. This highly efficient trigeneration system (CCHP) has also enabled the factory to reduce its CO2 emissions by approximately 46%. In its first year of operation, the Capstone C1000S has maintained >96% availability with a target of 99% in the upcoming year.

The large international contract manufacturing company opted for Capstone's parts-only FPP contract, which will provide fixed scheduled and unscheduled spare parts costs for the next 10 years, providing protection from future parts price increases associated with replacement spare parts, commodity prices, and import tariffs.

"With this long-term maintenance contract at a global contract manufacturer, DTC now has a 24-megawatt fleet under Capstone long-term service contracts, with potential additional new contracts in the pipeline," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "This makes DTC's fleet our fourth-largest FPP service contract fleet globally and the largest FPP fleet in Latin America," concluded Mr. Foster.

"Long-term service agreements like this highlight the robust, recurring revenue business model enabled by Capstone's Energy as a Service (EaaS) offering, which is anchored by our long-term FPP service contracts, and are serviced by our high-quality global distributors like DTC Ecoenergia," stated Darren Jamison, President and Chief Executive Officer of Capstone Green Energy Corporation. "Additionally, the flexibility our microturbines can provide as a part of a broader on-site energy conversion project shows the value of Capstone Green Energy Solutions," 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.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

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FAQ

What is the recent contract signed by Capstone Green Energy (CGRN)?

Capstone Green Energy signed a 10-year Factory Protection Plan service contract for a 1-megawatt microturbine in Mexico.

How much of the electricity demand does the Capstone C1000S supply?

The Capstone C1000S supplies approximately 63% of the electricity demand for a large international contract manufacturer.

What are the CO2 emissions reductions achieved by Capstone's systems?

Capstone's C1000S microturbine has reduced CO2 emissions by about 46%.

How often has the C1000S system been available for operation?

The C1000S microturbine maintained >96% availability in its first year, targeting 99% for the upcoming year.

What is the significance of the new service contract for CGRN's business model?

The service contract reinforces Capstone's recurring revenue model through long-term service agreements.