C1000 for Oil & Gas Developer in Piceance Basin

September 2010 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, has received an order for a C1000 Power Package from an independent oil and natural gas company exploring in the Piceance Basin in the United States.

Capstone distributor Pumps & Service secured the order, which is the third in nine weeks from an oil-and-gas developer in the U.S. The oil and gas 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.

When commissioned in the coming months, the C1000 low-emission turbine will provide one megawatt of prime power to an unmanned natural gas compressor station along a pipeline in remote Northwestern Colorado. The microturbine will operate on natural gas pumping through the pipeline, so no outside fuel will be shipped to the site. Electricity produced by the microturbine will provide all power to the onsite equipment, including heaters, pump motors, circulation pump, distribution panels, and more.

In 2007, the Piceance Basin contained five of the top 50 U.S. gas fields in terms of proven resources. Experts today estimate the basin contains trillions of cubic feet of natural gas.

“This is a large natural-gas compressor site in an extremely remote, unmanned location that requires one megawatt of reliable power,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Oil and gas producers must install low-emission primary power sources at well sites and along pipelines, which makes Capstone microturbines an ideal power solution.”

“Every developer we talk to wants highly reliable power from a low-emission source. Fortunately, Capstone microturbines provide both,” said Bryan Hensley, Vice President of Sales and Marketing, Pumps & Service.

In the past nine weeks, Pumps & Service received orders for 18 C65 microturbines and a C600 turbine from prominent oil-and-gas developers drilling in the Marcellus Shale Play that spans West Virginia and Pennsylvania, and the Eagleford Shale Play in South Texas.