Capstone Green Energy Secures Multiple EaaS Contracts as Rental Units Under Contract Approaches 40 MW with a Plan of 50 MW by March 31, 2023
Capstone Green Energy (NASDAQ: CGRN) announced the acquisition of new Energy-as-a-Service (EaaS) rental contracts, bringing its total to 39 MW. The company aims to reach a target of 50 MW by March 31, 2023.
This expansion reflects strong customer demand and underscores Capstone's commitment to providing higher-margin, predictable revenue streams. Over the past four years, Capstone has helped customers save approximately $911 million in energy costs and reduced carbon emissions by around 1.5 million tons.
- Secured new EaaS rental contracts, increasing total to 39 MW.
- Targeting 50 MW by March 31, 2023, indicating strategic growth.
- Significant savings for clients: $911 million in energy costs over four years.
- Potential risks associated with achieving the 50 MW target due to supply chain constraints.
- Dependence on ongoing customer demand may affect future performance.
Capstone Is Focused On Growing the EaaS Business Model as Quickly as Possible Because It Provides Higher Margins, More Constant and Predictable Revenue Streams
EaaS Contract Growth Chart
These new contracts represent the continued expansion of the EaaS strategy and is indicative of ongoing customer demand. These most recent wins demonstrate the Company is on track with its vision to create economically attractive, smarter energy solutions and builds on its track record of enabling its customers to save
“Capstone is seeing ongoing strong customer demand across multiple industries for its EaaS long-term rental services. The growth has been robust, with 7 MW under contract in
“The EaaS business is a critical cornerstone of our strategic plan as it provides higher margins, more constant and predictable revenue streams, and allows for a more streamlined staffing model than a traditional industrial manufacturing company. Additionally, this service is in high demand as it helps customers manage capital costs and meet their environmental impact targets,” stated Scott Robinson Capstone Green Energy Interim Chief Financial Officer.
“As part of this growth initiative, Capstone management has reduced operating costs and modified the operating model, while not losing sight of the goal of expanding its EaaS business. In order to meet demand and optimize capital, the Company has developed a “re-rent” strategy, enabling it to quickly accelerate the growth in EaaS rentals in a capital efficient manner. When we “re-rent” a unit it means we are taking an existing customer’s pre-owned microturbine unit that is not being utilized and deploying it into our growing EaaS customer base,” concluded Robinson.
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To date, Capstone has shipped over 10,000 units to 83 countries and estimates that in FY22, it saved customers over
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 achievement of its EaaS MW target, 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 that the Company will be unable to meet its 50 MW EaaS target by
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FAQ
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