August 2014 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, today announced that it has signed a Factory Protection Plan (FPP) contract for nine C1000s increasing the total contract backlog for Capstone FPPs to a record of over $55 million. This $55 million in service backlog is in addition to the record $175 million product backlog as of June 30, 2014.
Horizon Power Systems, a leading energy supplier in the Oil and Gas market boasting a fleet of over 600 Capstone microturbines in operation, secured the FPP service contract to cover a major oil and gas producer’s nine Capstone C1000 power packages at multiple locations.
Capstone microturbine is already the top choice in the low emission distributed generation oil and gas market due to its ability to deliver clean, reliable, and cost-effective power solutions. The Capstone FPP is unmatched in the industry and is designed to secure the reliability of the Capstone system by offering a risk-transfer solution aimed at limiting the monetary risk of any unplanned maintenance over the life of the contract.
“Most oil and gas producers work in remote locations where an electric utility grid is not an option or unreliable. The Capstone microturbine becomes the sole source of critical low emission power that our customers have come to rely on,” said Sam Henry, President of Horizon Power Systems.
The nine C1000 systems currently operate in remote central gas gathering plants belonging to one of the largest natural gas operators in the Rocky Mountain and Mid-Continent regions, and the sites are now further protected under the inclusive Capstone FPP contract for a full nine years.
“The Capstone system is unique in its capability to drastically reduce flared gas and instead capture this gas and cycle it back into the production process, allowing our customers the ability to conduct business in a safe and environmentally responsible manner. The addition of the FPP will provide our customer with the peace of mind that they are covered by the Capstone factory for an additional nine years,” adds Henry.
Darren Jamison, Capstone President and Chief Executive Officer, said, “We have seen steady adoption of our Factory Protection Plan offering, and I am pleased to have exceeded $55 million in backlog in such a short period of time.”