Capstone Turbine (NASDAQ:CPST) Secures 800 KW Order From Costa Group, Australia’s Leading Horticultural Company

Rhea-AI Summary

Capstone Turbine Corporation (NASDAQ:CPST) has announced an order for an 800 kW Signature Series microturbine from Costa Group, Australia’s top grower and marketer of fresh produce. This unit will enhance energy efficiency at Costa's tomato glasshouse facility, expected to be operational by June 2021. Capstone's technology will provide an environmentally friendly energy solution, supporting the company's ongoing shift towards green energy, which now constitutes 62% of its total business. The microturbine's modular design allows future capacity expansion to 1 MW.

Positive

• Secured an 800 kW order from Costa Group, indicating strong demand.
• Microturbine technology aligns with green energy solutions and expanding market focus.
• Projected operational commissioning by June 2021, potentially enhancing revenue streams.
• Opportunities for future expansion with a modular design, increasing capacity up to 1 MW.

Negative

• None.

The Combined Cooling Heat and Power (CCHP) Application Expected to Improve Energy Efficiency and CO2 Injection Concentration

VAN NUYS, CA / ACCESSWIRE / December 3, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it has received an order for an 800 kilowatt (kW) Signature Series microturbine for Costa Group, Australia's leading grower, packer and marketer of fresh fruits and vegetables. Optimal Group, Capstone's exclusive distributor in Australia (www.optimalgroup.com.au), secured the order for the unit, which is expected to be commissioned in June 2021.

"Capstone, with strategic partners like Optimal Group, continues its focus on the global energy efficiency markets, which has expanded to 62% of our total business through the six months ended September 30, 2020," said Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "Capstone's unique microturbine-based energy efficiency products and services combined with our hydrogen initiative are expected to propel our future revenue progression as part of an overall global shift to green energy," concluded Mr. Jamison.

Aerial Photo of the Costa Group's State-of-the-Art Tomato Glasshouse Facility

Located near the New South Wales town of Guyra, the microturbine will be deployed in one of Australia's largest and most advanced tomato glasshouse facilities. Costa Group's state-of-the-art glasshouse technology and growth program puts Costa at the forefront of innovation in sustainable farming practices and sets them apart in the fruit and vegetable industry.

Costa Group sought out an efficient and reliable energy system that required minimal maintenance and was environmentally friendly. They turned to Optimal Group and Capstone's microturbine technology to accommodate their massive plant expansion project. Optimal was able to offer a solution that would meet Costa Group's expanded power needs and provide a more flexible source of power.

Installed in a Quad-Gen application (combined power, heat, cooling and CO₂ fertigation) the microturbine configuration will include a specialized heat recovery module (HRM), two co-fired burners and a custom-designed Optimal cooling system. The 800 kW microturbine will be shipped in a five-bay enclosure to accommodate future expansion. The system's inherent modular architecture will allow the customer to increase capacity for an additional 200 kW, up to 1 megawatt (MW).

The microturbine will supply hot water to the glasshouse via a custom two-stage HRM. The first stage will provide high-temperature hot water (85°C/185°F) to the glasshouse heating system. The exhaust will be sent to two hot water boilers as combustion air. The boilers will be fitted with two SAACKE burners, which will utilize the turbine exhaust to fire the burner. The boilers will provide hot water for the glasshouse, while the cooled exhaust will be used for plant CO₂ fertigation. To improve the flue distribution, a water cooling system has been included to improve the performance of the flue gas condensers.

Capstone's microturbine technology is an excellent fit for CHP and CO₂ fertigation in a greenhouse. Greenhouses usually provide the CO₂ to enhance plant growth by using the exhaust from a natural gas boiler. In these applications, the clean exhaust from the microturbine delivers additional value, providing a richer stream of CO₂ to the plants while maintaining very low CO, NOx and hydrocarbons.

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.

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.

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

SOURCE: Capstone Turbine Corporation

View source version on accesswire.com:
https://www.accesswire.com/619068/Capstone-Turbine-NASDAQCPST-Secures-800-KW-Order-From-Costa-Group-Australias-Leading-Horticultural-Company

FAQ

What is the significance of the 800 kW order from Costa Group for Capstone Turbine (CPST)?

The order represents a strong demand for Capstone's microturbine technology, enhancing their market presence in the green energy sector.

When is the new microturbine expected to be operational at Costa Group?

The microturbine is expected to be operational by June 2021.

How does the microturbine order affect Capstone's business strategy?

The order supports Capstone's strategic focus on energy efficiency and green technologies, which comprises 62% of their total business.

What are the future expansion capabilities of the microturbine for Costa Group?

The microturbine's modular design allows for a capacity increase up to 1 MW.

What market segment does Capstone Turbine Corporation primarily serve?

Capstone serves multiple vertical markets including energy efficiency, renewable energy, and critical power supply.