Capstone Receives C1000 Signature Series Order for Another Flare Gas-to-Energy Project
March 21 2018 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today an order for a C1000
Signature Series unit to be deployed on another flare gas-to-energy
project in Los Angeles, California.
The order comes on the heels of a late December 2017 order for
two C1000 Signature Series microturbines to power an oil and gas
site in California. Cal Microturbine, one of Capstone’s
distributors for California, secured both orders.
The customer, an oil and gas production facility, previously
opted to sell the produced natural gas, as opposed to flaring it
and releasing the harmful gas into the air. However, the customer
realized that it could obtain the financial benefits from using the
gas to generate onsite electricity, while also avoiding the
environmental impact of flaring, a combined result that far
outweighed the value of simply selling the raw commodity. Cal
Microturbine expects the project to be commissioned this
summer.
The World Bank reports that between 150 to 170 billion cubic
meters of gases are flared or vented annually, an amount valued at
about $30.6 billion, equivalent to 25% of the United States’
natural gas consumption or 30% of the European Union’s natural gas
consumption annually.
“Fortunately, this California oil and gas producer was
environmentally conscious by capturing and selling its associated
natural gas. Unfortunately, that is still the exception and not the
rule in far too many instances in the U.S. and around the world,”
said Darren Jamison, President and Chief Executive Officer of
Capstone. “The flaring of associated gas is a senseless and
old-fashioned practice that wastes precious natural resources while
simultaneously contributing to global warming. Typically, it is
both economically and environmentally smarter to capture and
utilize associated gas in a low emission technology like
microturbines,” added Mr. Jamison.
Flaring associated gas releases methane, a greenhouse gas
that, when released directly into the air, traps heat in the
atmosphere. The process of flaring contributes directly to global
warming. Flaring has a substantial impact on the
health and environment of landowners who live near a
flared well. The methane release can be smelly, noisy, and,
according to the National Institute of Health, exposure can cause
headaches, dizziness, weakness, nausea, vomiting, and loss of
coordination in people and animals. In addition, it
creates a 24x7 bright light, blocking out the night sky.
Capstone microturbines are able to use the associated natural
gas as an input fuel source without any gas pre-treatment. This
allows the end-use customer to monetize the associated gas, keep
operational costs low by not needing extra fuel-cleaning equipment
and significantly reduce the negative impact on the local
environment.
“We are seeing increased interest in reducing utility costs from
oil and gas clients in California,” said Jim Crouse, Executive Vice
President of Sales and Marketing for Capstone. “These clients are
realizing that they can derive more value from their produced
associated natural gas by using it to generate electricity onsite
than they can by flaring it or selling it on the wholesale market,”
added Mr. Crouse.
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.
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,"
"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.
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CONTACT:
Capstone Turbine CorporationInvestor and investment media
inquiries:818-407-3628ir@capstoneturbine.com
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