Capstone Green Energy Announces New 4 MW, Two-Year EaaS Contract – Plans to Expand Rental Fleet to 21.1 MW by March 31, 2022
January 25 2022 - 8:00AM
Business Wire
Remote Data Center Located on Oil & Gas
Well Handles Cryptocurrency Mining
Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com)
(NASDAQ: CGRN) ("Capstone," the "Company," "we" or "us"), a global
leader in carbon reduction and on-site resilient green energy as a
service (EaaS) solutions, announced today that it has entered into
a 4 megawatt (MW), two-year, long-term rental contract with a new
end-use customer in the cryptocurrency mining space. The new
two-year contract represents another 4 MW of clean Energy as a
Service (EaaS) rental systems, and continues Capstone Green
Energy’s expansion of its current long-term rental fleet to 21.1 MW
by March 31, 2022.
“Capstone continues to expand its EaaS business, including its
long-term rental program. This is an important element in achieving
our near-term profitability goals as rentals generate higher
contribution margin rates than traditional product sales,” said
Darren Jamison, President and Chief Executive Officer of Capstone
Green Energy. “With this new 4 MW, long-term contract and the
existing pipeline of rental projects, we expect to reach our goal
of a 21.1 MW rental fleet by March 31, 2022,” concluded Mr.
Jamison.
Located on an oil and gas well, this remote data center handles
large volume, blockchain and cryptocurrency mining. The customer
approached Capstone looking for an innovative way to take advantage
of their existing on-site associated production gas, a byproduct
that would otherwise be released into the atmosphere.
Because Capstone microturbines are designed to offer fuel
flexibility, the system will use the waste gas, essentially as free
fuel, a benefit that not only reduces emissions but also offers
operational savings. Further, the added reliability, low emissions,
and nominal maintenance requirements of microturbine-based rental
systems make them an ideal solution for remote locations, which can
be hard to reach and often deal with challenging climate
conditions.
Cryptocurrency mining is the process by which new crypto "coins"
are entered into circulation. Their production requires highly
sophisticated computers, often in a data center, to solve complex
computational math problems. By their very nature, data centers
require tremendous amounts of electricity. At a time when the
utility grid is strained due to extreme weather, aging
infrastructure, and inadequate transmission, on-site power provides
a resilient, cost-effective alternative for energy-intensive
facilities.
By offering customers Energy as a Service, Capstone Green Energy
is strengthening its commitment to creating smarter energy for a
cleaner future, as carbon reduction continues to have
ever-increasing value to global customers.
About Capstone Green Energy
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:
CGRN) is a leading provider of customized microgrid solutions and
on-site energy technology systems focused on helping customers
around the globe meet their environmental, energy savings, and
resiliency goals. Capstone Green Energy focuses on four key
business lines. Through its Energy as a Service (EaaS) business, it
offers rental solutions utilizing its microturbine energy systems
and battery storage systems, comprehensive Factory Protection Plan
(FPP) service contracts that guarantee life-cycle costs, as well as
aftermarket parts. Energy Conversion Products are driven by the
Company's industry-leading, highly efficient, low-emission,
resilient microturbine energy systems offering scalable solutions
in addition to a broad range of customer-tailored solutions,
including hybrid energy systems and larger frame industrial
turbines. The Energy Storage Products business line designs and
installs microgrid storage systems creating customized solutions
using a combination of battery technologies and monitoring
software. Through Hydrogen Energy Solutions, Capstone Green Energy
offers customers a variety of hydrogen products, including the
Company's microturbine energy systems.
For customers with limited capital or short-term needs, Capstone
offers rental systems; for more information, contact:
rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000
units to 83 countries and estimates that, in FY21, it saved
customers over $217 million in annual energy costs and
approximately 397,000 tons of carbon. Total savings over the last
three years are estimated at 1,115,100 tons of carbon and $698
million in annual energy savings.
For more information about the Company, please visit:
www.CapstoneGreenEnergy.com. Follow Capstone Green Energy 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 for green initiatives and
execution on the Company's growth strategy and other statements
regarding the Company's expectations, beliefs, plans, intentions,
and strategies. 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; product quality
issues, including the adequacy of reserves therefor and warranty
cost exposure; 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.
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Capstone Green Energy Investor and investment media inquiries:
818-407-3628 ir@CGRNenergy.com
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