Capstone Green Energy (NASDAQ:CGRN) Signs a 10-Year Service Contract on 1.2 MWs of Microturbines Installed in the Fourth-Tallest Building in New York City

Rhea-AI Summary

Capstone Green Energy Corporation (NASDAQ:CGRN) announced a significant contract with RSP Systems for a long-term service agreement covering 1.2 megawatts (MWs) of microturbines in a major Midtown Manhattan skyscraper. This agreement extends RSP's fleet under Capstone's Factory Protection Plan (FPP) to over 25 MWs, ensuring fixed costs for maintenance over the next 10 years. The microturbines are designed to enhance energy efficiency and support sustainability goals, providing predictable cash flows and higher margins as part of Capstone's Energy as a Service (EaaS) strategy.

Positive

• Signed a 10-year service contract for 1.2 MWs of microturbines, enhancing revenue predictability.
• Extended RSP Systems' fleet under FPP to over 25 MWs, increasing service portfolio.
• Supports sustainability goals with energy-efficient technology, complying with strict emissions standards.
• EaaS strategy expected to generate higher margins and predictable cash flows.

Negative

• None.

VAN NUYS, CA / ACCESSWIRE / July 29, 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 RSP Systems (www.rsp-systems.com), Capstone's exclusive distributor for the Energy Efficiency, Renewable Energy and Critical Power Supply market verticals in New York, Connecticut, and Ohio recently signed a new Capstone Factory Protection Plan (FPP) long-term service contract for 1.2 megawatts (MWs) of Capstone microturbines installed on the fourth-tallest building in New York City located in midtown Manhattan.

The skyscraper's 1.2 MW energy efficiency plant consists of two Capstone C600S microturbines with Capstone's Integrated Heat Recovery Modules (iHRMs). The Capstone C600S systems have split bus bars allowing each C600S to reduce the building's electrical load at three individual points of entry (POE) for a total of six POEs. The thermal energy recovered by the iHRMs is fed to a 200-ton Broad Absorption Chiller, which operates year-round, providing cooling for the building, thereby reducing the load on the building's main electrical chillers. During the swing months of the year, when the cooling loads are less, the system can switch over to provide the recovered thermal energy to the building's heating load.

Capstone's Signature Series microturbines, utilizing a green energy technology with integrated iHRMs, provide an industry-leading combined heat and power (CHP) solution that is lightweight, quiet, and compact - the perfect complement to this sustainable design and construction in the heart of New York City. Capstone microturbines enable customers to meet their environmental, energy savings, and resiliency goals by complying with the world's most stringent emissions standards.

"Continuing to grow our Energy as a Service (EaaS) business is critical to continuing our transition to more predictable cash flows and higher margins. EaaS includes not only our long-term service contracts but also long-term rental contracts, installation services, maintenance service, spare parts, leasing, PPAs, and project financing, as well as our unique distributor subscription fee or DSS program," said Darren Jamison, Capstone's President and Chief Executive Officer. "The common elements are steadier cash flows, visibility, and higher margin rates, which are a critical part of our profitability plan," added Mr. Jamison.

In signing this service agreement, RSP Systems has raised their fleet covered by Capstone's FPP to over 25 megawatts. The Capstone FPP will provide the end-use customer with fixed costs for scheduled and unscheduled parts for the next 10 years, allowing for protection from future cost increases associated with the replacement of spare parts, commodity pricing, and import tariffs.

"RSP Systems continues to grow their remarkable install base and FPP contract base in the New York area by providing world-class service, from sales to application to aftermarket support," said Tracy Chidbachian, Capstone Director of Customer Service. "RSP Systems' highly experienced and talented team assists end-use customers in recognizing the value of the FPP program, which provides predictable maintenance costs and eliminates uncertainties about unexpected expenditures," concluded Ms. Chidbachian.

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

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FAQ

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

Capstone Green Energy signed a 10-year service contract with RSP Systems for 1.2 MWs of microturbines in a Midtown Manhattan building.

How does the new contract affect Capstone Green Energy's future revenue?

The contract is part of Capstone's Energy as a Service strategy, expected to provide more predictable cash flows and higher margins.

What is the significance of the Factory Protection Plan (FPP) for Capstone (CGRN)?

The FPP guarantees fixed maintenance costs for the next 10 years, protecting against future cost increases for spare parts.

How many megawatts does RSP Systems now cover under Capstone's FPP?

RSP Systems has raised its fleet covered by Capstone's FPP to over 25 megawatts.