Prominent Oil and Gas Developer Orders 18 C65s

August 2010 – Capstone Turbine Corporation ( ) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, recently received an order for 18 C65 microturbines for one of the world’s largest independent oil and natural gas companies.

Capstone distributor Pumps & Service (Horizon Power Systems*) received its second order in the past eight weeks from a major oil and gas company exploring large shale reserves — or plays — in the United States. The market for Capstone turbines and microturbines in this industry is vast. The market is expected to grow substantially, especially since the U.S. Environmental Protection Agency’s (EPA) Clean Air Act has strict requirements for emissions levels at natural gas sites.

The 18 low-emission C65 microturbines will provide prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford shale play in South Texas. The Eagle Ford play is expected to emerge as a major oil and gas play in the United States over the next decade. Experts estimate it will rank sixth in size among the all-time giant oil fields in the U.S.

“Many of these sites are extremely remote and unmanned, which means 24×7 distributed power is paramount,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Even more important, producers must meet tough EPA air-permitting requirements, which makes Capstone’s clean-and-green, low-emission microturbines attractive.”

“The reliability of Capstone microturbines, along with their low emissions, low cost of ownership, and Pumps & Service’s ability to deliver the total solution, all contributed to the company’s decision to select Capstone,” said Bryan Hensley, Vice President of Sales and Marketing, Pumps & Service.

The order Pumps & Service received two months ago from North America’s largest gas producer featured a Capstone C600 microturbine that will be installed at a site pumping gas from the Marcellus Shale Play that spans West Virginia, Pennsylvania and Southern New York.

*NOTE: In November 2010, the business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.