Capstone Announces New Severe Environment Air Filtration System - Expands Presence in the Middle East with New Flare Gas Red...
January 03 2018 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it has launched a
new cleanable severe environment air filtration system for its
innovative line of microturbine products and as a result recently
received an order for three C65 microturbines utilizing this new
filtration system for a flare gas reduction project in Oman.
During sand and dust storms common to most hot arid desert
areas, particulate concentrations close to the ground can reach
levels 20,000 times those in typical U.S. cities. Even at an
elevation of above grade, particulate concentrations about 1,000
times U.S. urban averages are frequently observed during sandstorms
and dust storms. Such dust and dirt loads can cripple conventional
air filtration systems, cause massive maintenance expenditures and
allow excessive dust concentrations to be ingested by the
turbine.
Capstone’s new cleanable severe environment units employ
industry standard high-efficiency filters. They are a scaled down
version of the filters used in much larger industrial and
aero-derivative gas turbines and allow operation for prolonged time
periods in desert environments like the Middle East.
Pipeline Supply Company, Capstone’s distributor for Oman and
Qatar, secured the order for multiple C65 cleanable severe
environment units. The microturbines will be fueled by the
associated gas that is a natural byproduct of the oil extraction
process. This gas, which can be of poor quality, is normally vented
or flared into the atmosphere because it is not of the quality to
be put into natural gas pipelines. Additionally, oil and gas
operations are typically in remote areas, which means there is no
infrastructure available to clean and capture the gas and bring it
to market.
Capstone’s microturbines help alleviate both problems. First,
they are able to run on associated gas with very little
pre-treatment and convert it into electricity to be used onsite.
Secondly, they are able to operate in remote and harsh
environments, like the desert, with very little maintenance while
simultaneously having a positive impact on the environment.
According to the EIA (Energy Information Administration), Oman
ranks as the 7th largest proved oil reserve holder in the Middle
East and 22nd largest in the world at an average of 1 million
barrels a day of production in 2016.
“Oil prices posted their strongest opening to a year since 2014
on Tuesday, with crude rising to mid-2015 highs amid large
anti-government rallies in Iran and ongoing supply cuts led by OPEC
and Russia,” said Darren Jamison, President and Chief Executive
Officer of Capstone. “With increasing crude oil prices and a
growing interest in utilizing associated gas to create onsite
energy we are developing a new line of cleanable severe environment
air filter systems to improve the overall turbine performance in
the growing Middle Eastern markets,” added Mr. Jamison.
U.S. West Texas Intermediate (WTI) crude futures were at $60.20
a barrel by 11:22 a.m. ET on January 2, 2018, down 22 cents, after
hitting $60.74 earlier in the day, the highest since June 2015.
Brent crude futures, the international benchmark, were at $66.32 a
barrel, down 55 cents, after hitting a May 2015 high of $67.29 a
barrel earlier in the day. It was the first time since January 2014
that the two crude oil benchmarks opened the year above $60 per
barrel. “Growing unrest in Iran set the table for a bullish start
to 2018," the U.S.-based Schork Report said in a note to clients on
Tuesday.
“We are enthusiastic to see our distributors in the Middle East
continuing to build their capabilities and potential project
pipelines,” said Jim Crouse, Executive Vice President of Sales and
Marketing for Capstone. “Given the size of the oil and gas industry
in the Middle East, we expect to see steady growth in the region
and our new air filtration system will help ensure those new
customers see the same product performance and reliability Capstone
customers enjoy in other environments around the world.”
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST) is the world's leading producer of low-emission
microturbine systems and was the first to market commercially
viable microturbine energy products. Capstone has shipped over
9,000 Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone is a member of the U.S.
Environmental Protection Agency's Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A UL-Certified ISO 9001:2015 and ISO
14001:2015 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in
the United States, Latin America, Europe, Middle East and
Asia.
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, including
statements about the advantages of Capstone’s new cleanable severe
environment air filtration system, potential market growth in the
Middle East and increasing crude oil prices. Forward-looking
statements may be identified by words such as "expects,"
"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 CorporationInvestor and investment
media inquiries:818-407-3628 ir@capstoneturbine.com
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/950e978e-f63a-40c9-ad71-7451f4a4bbc7
The photo is also available at Newscom, www.newscom.com, and via
AP PhotoExpress.
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