Capstone Green Energy to Provide Low Emission Microturbine System to Major Global Oil & Gas Company in Malaysia

Rhea-AI Summary

Capstone Green Energy Corporation (NASDAQ: CGRN) has received an order for a 200 kW microturbine system for an offshore oil and gas platform in Sarawak, Malaysia, from its distributor, Sekito. This technology is valued for its reliability, efficiency, and ultra-low emissions. The new system will replace an older unit and is expected to be operational by March 2023. This marks a repeat order, indicating customer satisfaction with Capstone's microturbine performance, particularly in remote applications where low maintenance and reduced emissions are crucial.

Positive

• Secured a repeat order for a 200 kW microturbine system from a major global oil and gas company.
• Technology is recognized for its reliability, efficiency, and ultra-low emissions, suitable for unmanned applications.
• Expected commissioning of the new system by March 2023.

Negative

• None.

Reliability and Clean Technology Were Key Factors in Microturbine Selection

LOS ANGELES, Calif.--(BUSINESS WIRE)-- Capstone Green Energy Corporation's (NASDAQ: CGRN) distributor in Malaysia and Brunei, Sekito, has secured an order for a 200 kW microturbine-based system for an oil and gas application owned by a major global oil and gas company.

"Because low emission microturbine-based systems have such minimal maintenance needs, they are an ideal fit for unmanned applications like this one, especially where control and monitoring must be done remotely," said Darren Jamison, Chief Executive Officer of Capstone Green Energy. The reliability, efficiency, and ultra-low emissions of the Capstone Green Energy technology are incredibly compelling in these types of remote or offshore applications."

The new system will feature one ATEX-certified Capstone C200S microturbine. Providing prime power for an offshore wellhead platform in Sarawak, Malaysia, this retrofit system will replace an obsolete Calnetix Power Solutions TA100 microturbine currently at the site. It will use high-pressure natural gas (HPNG) from the platform wellhead as a fuel source. It is expected to be commissioned in March 2023.

This is a repeat order for the customer who purchased Capstone units for some of its other remote oil production platforms. Beyond being satisfied with the microturbine's performance, the customer values the technology for its low maintenance requirements compared and low greenhouse gas emissions.

"Sekito has become the choice power generation service provider for many oil and gas customers in the region. We provide them with highly efficient energy solutions as well as ongoing maintenance services. We also offer remote monitoring and control along with smart predictive AI that anticipates site needs," said Mohd Azam, Managing Director of Sekito. "Because Capstone's microturbine technology uses an air bearing system, it can eliminate maintenance costs and increase the system's reliability. Microturbines also produce minimal greenhouse gas emissions, so they are an environmental solution that will benefit future generations," added Mr. Azam.

About Sekito

Sekito was established to fulfill the demand for power generation and control solutions for major industries, especially in the oil and gas sector. Sekito’s core business of power generation solutions utilizes Capstone microturbines, which are primarily used in oil and gas applications for unstaffed platforms to deliver continuous power using the wellhead gas supply. Sekito’s other lines of business include, but are not limited to, Electrical Panel and System Integration Services for all Low-Voltage Panel Ratings. Sekito’s range of services includes 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.

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 to be approximately $698 million in energy savings and approximately 1,115,100 tons of carbon 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220801005283/en/

Capstone Green Energy

Investor and investment media inquiries:

818-407-3628

ir@CGRNenergy.com

Source: Capstone Green Energy Corporation

FAQ

What recent order did Capstone Green Energy Corporation secure?

Capstone Green Energy Corporation secured an order for a 200 kW microturbine system for an offshore oil and gas platform in Sarawak, Malaysia.

When will the new microturbine system be operational?

The new microturbine system is expected to be commissioned by March 2023.

What is the stock symbol for Capstone Green Energy Corporation?

The stock symbol for Capstone Green Energy Corporation is CGRN.

Who is the distributor for Capstone Green Energy in Malaysia and Brunei?

The distributor for Capstone Green Energy in Malaysia and Brunei is Sekito.

What are the benefits of Capstone's microturbine technology?

Capstone's microturbine technology is known for its low maintenance needs, reliability, efficiency, and ultra-low emissions.