Capstone Turbine (NASDAQ:CPST) signs 5-Year Long-Term FPP Service Contract as Asia Pacific Region begins Recovery

Rhea-AI Summary

Capstone Turbine Corporation (NASDAQ:CPST) has secured a 5-year Factory Protection Plan (FPP) contract for 2 MW microturbines at a remote mineral water bottling plant in the South Pacific. The C1000 Signature Series microturbines will serve as the primary baseload power source, reducing reliance on diesel generators. Despite initial COVID-19 related delays, the project is progressing. Optimal Group Australia now manages a 14 MW fleet under FPP, enhancing its position among global distributors. Capstone’s FPP offers fixed maintenance costs, protecting customers from future price fluctuations.

Positive

• Secured a 5-year FPP contract for 2 MW microturbines in a new project, which strengthens market presence.
• Optimal Group Australia now has a 14 MW fleet under FPP, enhancing its competitiveness in the Asia Pacific region.
• The project demonstrates Capstone's ability to provide clean energy solutions, supporting environmental progress.

Negative

• Project commissioning was delayed initially due to the COVID-19 pandemic, impacting timelines.

Service Agreements for 2 MW Microturbines Running on Propane at a Mineral Water Bottling Plant in the South Pacific

VAN NUYS, CA / ACCESSWIRE / September 10, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that Optimal Group Australia (www.optimalgroup.com.au), Capstone's exclusive Australian distributor, recently signed a 2 Megawatt (MW) 5-Year Factory Protection Plan (FPP) with a remotely located Oceana-based mineral water bottling facility.

The project uses two stand-alone C1000 Signature Series (C1000S) one-megawatt microturbine systems running on clean-burning propane as a primary baseload power source for a mineral water bottling facility located on a remote off-grid island location. The site will have up to 8 MW's of power demand, and a portion of this demand is currently met with diesel fuel generators running in parallel with the clean and green Capstone microturbines. The site was recently upgraded with a new 50-ton propane tank. This site's commissioning was initially delayed by the COVID-19 pandemic, which first hit in the APAC (Asia Pacific) region, but this project is now moving forward again.

Two stand-alone Capstone C1000 Signature Series one-megawatt microturbine systems running on propane for a remote Oceana-based mineral water bottling facility.

"With this new long-term maintenance contract for this exciting new project, Optimal now has a 14 MW fleet under FPP, with more new contracts in the pipeline," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "Additionally, this puts Optimal firmly in the top-ten of all Capstone distributors globally and the top distributor in the Asia Pacific region," added Mr. Foster.

"This innovative project highlights the value that Capstone's reliably clean and green energy solutions can provide under the most rigorous conditions using a wide range of fuel types," stated Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "Our redundant architecture enables very high reliability, and our ability to use multiple inexpensive and clean fuels supports global environmental progress in a cost-effective manner for our end customers," concluded Mr. Jamison.

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/605507/Capstone-Turbine-NASDAQCPST-signs-5-Year-Long-Term-FPP-Service-Contract-as-Asia-Pacific-Region-begins-Recovery

FAQ

What is the significance of Capstone's new 5-Year FPP contract for CPST?

The contract secures long-term maintenance for 2 MW microturbines, enhancing Capstone's market presence and reliability.

How does the new service agreement affect Capstone's performance?

It positions Capstone as a leader in clean energy solutions, potentially increasing revenue and market share.

What was the impact of COVID-19 on the Capstone project?

The commissioning of the mineral water bottling plant was delayed due to the COVID-19 pandemic.

What is the role of Optimal Group Australia in this project?

Optimal Group Australia is the exclusive distributor managing the long-term maintenance of the microturbines.