After a Combined 700,000 Hours of Uninterrupted Operation Capstone Executes a 1.6 MW Long-Term Service Contract Renewal
Capstone Turbine Corporation (NASDAQ:CPST) has announced a renewal of a Factory Protection Plan (FPP) service contract for 1.6 megawatts of its microturbines, securing an additional 10 years with Horizon Power Systems. The microturbines, operational since 2009 at a gas compressor station in Arizona, have achieved over 700,000 hours of uninterrupted service. The renewal reflects a growing recurring revenue model, with the global fleet now comprising 284 MW in FPP contracts, about 58% of eligible systems.
- Renewal of 10-year FPP service contract enhances predictable maintenance costs.
- Microturbines have achieved over 700,000 hours of uninterrupted operation, showcasing reliability.
- Growing recurring revenue model, with 284 MW in FPP contracts representing 58% of eligible systems.
- None.
VAN NUYS, CA / ACCESSWIRE / December 16, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that Horizon Power Systems, the exclusive Capstone distributor for the Rocky Mountains and Western Canada (www.horizonpowersystems.com), renewed a Factory Protection Plan (FPP) service contract for 1.6 megawatts (MW) of Capstone microturbines, for an additional 10 years. The microturbines are installed at a remote gas compressor station in Arizona. The microturbines have operated uninterrupted for over 700,000 combined hours since 2009.
"The combined 700,000 hours of uninterrupted operation at the site demonstrates the durability of Capstone microturbines," said Sam Henry, President of Horizon Power Systems. "This longtime customer knows that Capstone microturbines have a significant reliable life, especially when supported under Capstone's comprehensive long-term FPP," added Mr. Henry.
Horizon Power Systems originally commissioned the C1000 and C600 microturbines in December 2009 at the remote site, which is operated by one of the largest natural gas transportation companies in the United States. Two years later, the microturbines were placed under their first FPP, a 9-year contract that provided complete service coverage from Horizon Power, including scheduled and unscheduled maintenance.
The 10-year Capstone parts and labor FPP enables the customer to have predictable and stable maintenance costs, and protection from future cost increases associated with replacement spare parts, commodity prices, import tariffs and labor rates.
The 1.6 MW produced by the C1000 and C600 Capstone microturbines provides continuous power to the entire gas compressor station. The microturbines are configured in Capstone Dual Mode, making them capable of running in parallel or separate from the electric utility.
"Renewals like this really highlight the robust, recurring revenue business model enabled by our Energy as a Service (EaaS) offering, which is anchored by our long-term FPP service contracts that are serviced by our excellent distributors like Horizon Power," stated Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "Our FPP global fleet now sits at a record 284 MW or
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today's multi-technology distributed power generation projects.
For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@capstoneturbine.com. To date, Capstone has shipped nearly 10,000 units to 83 countries and in FY20, saved customers an estimated
For more information about the company, please visit www.capstoneturbine.com. Follow Capstone Turbine 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, beliefs, plans, intentions, and strategies of the Company. 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; 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.
"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
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ir@capstoneturbine.com
SOURCE: Capstone Turbine Corporation
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