Capstone Turbine (NASDAQ: CPST) Executes 5-Year Long-Term Factory Protection Plan Service Contract in Italy

Rhea-AI Summary

Capstone Turbine Corporation (NASDAQ:CPST) has signed a long-term service agreement for its C600 Signature Series microturbine in a food production facility in Italy. The contract is expected to save the facility over €300,000 annually in energy costs and reduce CO₂ emissions by 938 tons per year. During fiscal 2020, Capstone's technology generated estimated savings of $219 million in energy costs for customers and reduced carbon emissions by 368,000 tons. The new agreement signifies a recovery in the European market post-COVID-19, underscoring Capstone's commitment to energy efficiency and sustainability.

Positive

• New long-term service agreement for a microturbine in Italy expected to save €300K annually and reduce CO2 emissions by 938 tons.
• Fiscal year 2020 saw Capstone save customers an estimated $219 million in energy costs and 368,000 tons of carbon.

Negative

• Fiscal year 2020 progress in carbon savings was offset by cleaner electrical utility grids in the U.S. and Europe.

New 600kW Service Agreement for Food Production Facility Saving €300K Per Year in Energy Costs and 938 Tons of CO2 Emissions Annually.

VAN NUYS, CA / ACCESSWIRE / August 27, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that IBT Connecting Energies GmbH (www.ibtgroup.at), Capstone's exclusive distributor for Italy, signed a new Factory Protection Plan (FPP) long-term service contract for a Capstone C600 Signature Series microturbine (C600S) installed in a food production facility.

The C600S runs grid-connected using clean natural gas, and the co-generation application is the factory's prime energy source using power and steam for cooking cured meats, making this customer more competitive in their local market. Using Capstone technology, this customer is able to realize cost savings exceeding €300K per year and reduce CO₂ emissions an estimated 938 tons per year.

During fiscal year 2020, Capstone Turbine saved end-use customers an estimated $219 million in annual energy costs and 368,000 tons of carbon. The fiscal 2020 results demonstrate continued progress in carbon savings, up 5% from the prior fiscal year, but were offset somewhat by cleaner electrical utility grids in the U.S. and Europe. A single Capstone powered combined heat and power (CHP) energy system can provide customers an annual energy savings of up to an estimated 40% while simultaneously meaningfully lowering their carbon footprint.

"We are very pleased to now see our European customers returning to more normal business operations, especially in Northern Italy, where this facility is located in Medesano," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "While much of our service business continued supporting critical infrastructure customers during this unprecedented shutdown due to the COVID-19 pandemic, we are now beginning to see a return to the growth of our critical aftermarket FPP business across Europe," added Mr. Foster.

"This new contract shows the resiliency of the Italian people after the devastating impact of the COVID-19 pandemic and brings hope for continued recovery across the rest of the world," stated Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "IBT has been a long-term partner of Capstone, and we are excited to see their business recovery and how our new world view of energy solutions highlighted by the impacts of COVID-19, will continue to drive customers to see the value in Capstone clean and reliable distributed energy solutions," concluded Mr. Jamison.

Capstone is committed to saving customers money by improving the energy efficiency of its operations around the world. Microturbine based high-efficiency energy systems provide an economic benefit while also reducing carbon and global emissions in order to create a better environment and help end-use customers achieve their carbon reduction goals while also providing energy resiliency.

Capstone's innovative Factory Protection Plan, or FPP, is a comprehensive maintenance program designed to give financial peace of mind to Capstone customers by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance for the life of the microturbine system. Additionally, the recently updated FPP protects microturbine customers from potentially dramatic future increases in life cycle costs associated with changes in replacement spare parts pricing, commodity price increases, import tariffs, and interest rate changes.

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 $219 million in annual energy costs and 368,000 tons of carbon.

For more information about the company, please visit www.capstoneturbine.com. Follow Capstone Turbine on Twitter, LinkedIn, Instagram, Facebook and YouTube.

Forward-Looking Statements

This press release contains "forward-looking statements," as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as "expects," "believes," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

CONTACT:

Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com

Integra Investor Relations
Shawn M. Severson
415-226-7747
cpst@integra-ir.com

SOURCE: Capstone Turbine Corporation

View source version on accesswire.com:
https://www.accesswire.com/603579/Capstone-Turbine-NASDAQ-CPST-Executes-5-Year-Long-Term-Factory-Protection-Plan-Service-Contract-in-Italy

FAQ

What is the significance of the new service agreement by Capstone Turbine (CPST)?

The new service agreement is expected to save the food production facility over €300,000 annually in energy costs and reduce CO2 emissions by 938 tons.

How much did Capstone Turbine save customers in energy costs during fiscal 2020?

Capstone Turbine saved customers an estimated $219 million in energy costs during fiscal 2020.

What impact did Capstone's technology have on carbon emissions in fiscal 2020?

Capstone's technology helped to reduce carbon emissions by 368,000 tons in fiscal 2020.

How does the new agreement reflect market conditions for Capstone (CPST)?

The agreement indicates a recovery in the European market post-COVID-19 and shows Capstone's resilience amidst changing market dynamics.