Horizon Power Systems

January 2016 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for three C800 systems and two C1000 systems for a total of 4.6 Megawatts for a large flare gas energy project in North America from Horizon Power Systems.

“The global slowdown in the energy industry is shifting customers away from exploration to an increased focus on lowering operating costs at existing assets and converting on-site flare gas to power generation. This is one way Capstone microturbines can be used to lower oil and gas users, monthly operational costs,” said Darren Jamison, Capstone’s President and Chief Executive Officer. “We have recently added additional oil and gas sales resources at Capstone, and we are encouraging our key distribution partners, like Horizon, to do the same.”

Horizon Power Systems is the exclusive Capstone Turbine distributor for Texas, Oklahoma, Kansas, Arizona, the Rocky Mountain States, Intermountain Regions, Gulf Coast States and the Western Provinces of Canada. The new orders will bring Horizon’s total fleet to more than 600 microturbines in operation.

The Capstone product was chosen because of its superior overall value proposition. No other microturbine manufacturer provides the combination of presales and aftersales support that the Capstone distributor network provides.

“Horizon Power Systems continues to receive follow-on orders due largely to the ability of Capstone microturbines to consistently deliver high reliability and low emissions,” said Sam Henry, President, Horizon Power Systems. “This customer requires technology that can burn poor quality flare gas and operate in extremely harsh environments, and based on their experience using the product throughout their portfolio they know Capstone microturbines excel in these conditions.”

Capstone continues to attract new and repeat customers globally. These orders help demonstrate the confidence our distributors and end users have in Capstone’s low emission, durable and highly efficient microturbines and why Capstone is their first choice for around-the-clock on-site energy production.

“Our inverter based generation systems provide flexibility that very few other solutions can provide,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Capstone microturbines have become the go-to power source for customers that want extremely reliable, high quality, easy to deploy and low emission on-site power solutions. The Horizon order indicates our customers’ satisfaction with our clean and green solutions.”

October 2015 – A U.S. producer – ranked among the Top 5 on the 2015 Forbes 100 – has joined a string of oil and gas companies to install Capstone microturbines that average 99 percent power availability and yield extremely low emissions (less than 9 ppm NOx).

The producer, working with Capstone distributor Horizon Power Systems, recently deployed nearly two megawatts of microturbine power at a remote, unmanned wellsite in the Permian Basin. One megawatt is used for standby power and 800-kilowatts to power an electrical submersible pump. Since their recent start-up the microturbines have operated flawlessly.

This is the latest in recent orders for Capstone microturbines from Horizon. In South Texas’ Eagle Ford Shale Play, microturbine power from Horizon reached 59 megawatts after a recent follow-on order for two Capstone C1000 microturbines from another large producer.

“With the drop in energy prices, gas producers are determined to increase efficiency and lower operating costs,” said Sam Henry, President, Horizon Power Systems. “They continue to select Capstone microturbines because of their efficiency and low life cycle costs, when compared to gensets.”

Total cost of ownership for a conventional reciprocating engine, for example, is often significantly higher than a microturbine’s. A reciprocating engine’s monthly oil changes plus labor and travel costs, repairs when parts fail, diesel fuel to truck in, utility and permitting fees, and, most importantly, huge losses from a shutdown add up to higher long-term costs.

About Capstone Microturbines
• Jet engine technology with one moving part, air-bearing technology and no lubricants or coolants.
• Simple design means significantly less scheduled maintenance and much lower maintenance costs than traditional power systems.
• Thousands installed at manned and unmanned well sites, gas processing facilities, compressor stations and other on- and off-shore facilities.
• Fueled by pipeline quality natural gas.
• Near non-stop runtime (99 percent availability average) means increased production, fewer power interruptions from maintenance downtime and lower utility bills.
• Meets or exceeds most stringent air-quality and emission standards. EPA strongly supports installation of low emission natural gas microturbine power plants.
• No need for access to utility grid.

August 2015 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for two C600 dual mode microturbines to power a facility and on-site equipment at an oil field project in Alaska.

Horizon Power Systems and Chenega Energy, two of Capstone’s North American distributors, worked together to secure the order and develop an ideal power plant for the project. The plant is expected to be commissioned in September 2015.

Two natural-gas-fired C600 dual mode microturbines, designed specifically for high humidity environments, will be installed at an onshore oil and gas production site in Alaska to provide primary power for operating the oil facility and on-site equipment. Capstone microturbines were chosen in lieu of traditional diesel engine generator sets for their high reliability, low emissions, low maintenance and low noise.

The joint effort between Horizon Power Systems and Chenega Energy underscores the strength and high level of collaboration between Capstone distribution partners. The development of a new project can take several months or even years. Phases of the project, such as engineering, can take place in a different part of the world than the installation itself. Providing a seamless experience across Capstone’s distribution network is an integral part of this process and ensures the best possible experience and outcome for the end use customer.

“The conversion to natural gas is a much cleaner and more efficient solution than traditional diesel engines,” said Sam Henry, President of Horizon Power Systems. “Combined with the scalability of microturbines, this allows for the facility’s power plant to expand incrementally, as the volume of production is expected to increase over time,” added Henry.

According to the U.S. Energy Information Administration (EIA), natural gas accounts for over half of Alaska’s electricity generation. Though with natural gas production volumes exceeding local demand, about three-fourths of the natural gas withdrawn is used at production sites.

“We continue to see the Oil and Gas industry in this Arctic climate embrace the Capstone technology,” said Greg Porter, President of Chenega Energy, LLC. “Our Capstone microturbines surpass the very strict air emission requirements and need no lubricating oil, grease or coolants. This reduces the need for spill-containment and used oil remediation. They are a very straightforward and reliable solution in an industry which often needs to move very quickly.”

July 2015 – Microturbine power in South Texas’ Eagle Ford Shale Play has reached 59 megawatts after a recent follow-on order with Horizon Power Systems for two Capstone C1000 MicroTurbines.

Averaging 99 percent availability, the two rugged and reliable C1000 microturbines will generate 2MW of prime power to compression stations using natural gas produced onsite.

“With this order, Horizon Power Systems has delivered 59MW of robust microturbine power to the Eagle Ford Shale Play,” said Sam Henry, President of Horizon Power Systems. “The consistent reliability and near non-stop runtime of the units at manned and unmanned sites, paired with our unparalleled customer service, has led to multiple follow-on orders from Eagle Ford producers.”

Capstone microturbines are extremely viable for remote oil and gas sites, even in the harshest conditions. They require significantly less scheduled maintenance than traditional power systems and can power production without access to the local utility grid. Additionally, the area’s producers and mid-stream operators find that the microturbines’ ultra-low emissions support their environmental initiatives.

“Eagle Ford is the largest oil and gas development in the world based on capital invested. I am pleased that Horizon and Capstone continue to significantly contribute to its development,” Henry added.

Horizon Power Systems is Capstone’s exclusive oil and gas distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan, and Wattenberg shale plays.

The project is expected to be commissioned in November 2015.

Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) is the world’s leading producer of low-emission microturbine systems. “Shale gas producers are focused on increasing efficiency and lowering operating costs in response to the drop in energy prices,” said Darren Jamison, President and Chief Executive Officer at Capstone Turbine. “Follow-on orders like this certainly indicate that major oil and gas producers are continuing to select Capstone’s efficient and low life cycle cost microturbines as their preferred option for their critical onsite power needs.”

July 2015 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for a C1000 microturbine to be installed at a power generation facility owned by Kineticor Resource Corporation, a Canadian energy services company focused on providing customized and reliable onsite power generation solutions for the resources sector. Kineticor builds, owns and operates power generation equipment that effectively converts associated gas to power.

Capstone’s distributor Horizon Power Systems secured the order, which is expected to be commissioned in October 2015. The grid connect C1000 microturbine will utilize the associated gas, also known as flare gas, produced by a central Saskatchewan energy company through a successfully negotiated power purchase agreement (PPA) with Kineticor. Capstone microturbines were chosen for fuel economics as well as their ability to effectively run on gas with high levels of hydrogen sulfide.

According to the Canadian Association of Petroleum Producers (CAPP), Canada is the world’s fifth-largest natural gas producer and has enough natural gas reserves to meet current national energy demand for the next 300 years. Additionally, about 30 percent of Canada’s entire energy needs are met by natural gas.

“Throughout western Canada Horizon Power Systems has seen more interest in using highly reliable Capstone microturbines to convert flare gas to useable energy,” said Sam Henry, President of Horizon Power Systems. “The fuel flexibility of Capstone microturbines is a critical competitive advantage. The high level of hydrogen sulfide in this fuel makes traditional reciprocating engine generator sets and other power sources difficult to employ, but Capstone microturbines operate seamlessly across a wide variety of fuels.”

“Strict guidelines have been imposed under the Saskatchewan Energy and Resource Directive S-10 to reduce the flaring, incinerating and venting of associated gas,” said Jim Crouse, Executive Vice President of Sales and Marketing at Capstone Turbine. “Capstone microturbines can efficiently run on this often wasted resource to generate clean energy for end users,” added Crouse.

June 2015 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for 25 C65 microturbines to fulfill the continual expansion of existing oil and gas customer fleets in shale plays across the western United States.

Horizon Power Systems, Capstone’s distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan, and Wattenberg Shale plays, secured the order, which is expected to be commissioned later this year. The order will serve numerous facets of the shale oil and gas production process and help to bolster aging infrastructures throughout these regions.

The natural-gas-fueled C65 microturbines will be installed in dual mode, which allows each customer to operate independently of the grid or with the grid in a load sharing capacity. Once commissioned, the microturbine systems will decrease the operating costs of key U.S. shale operations and ensure that reliable power is delivered to each site.

“As the U.S. shale market strengthens, Capstone stands ready with efficient and reliable microturbine energy solutions for both new and follow-on customers,” said Jim Crouse, Executive Vice President of Sales and Marketing at Capstone Turbine. “From urban to remote locations, Capstone microturbines continue to be the ideal solution for oil and gas producers looking to reduce operational expenditures and improve their on-site performance,” added Crouse.

“This significant new order is received following our recent order coming out of the Marcellus and Utica Shale Plays which had been secured by our distributor E-Finity Distributed Generation. Having our distributor Horizon Power Systems secure an impressive 25 microturbine unit order should be considered a clear market indicator that shale gas producers are continuing to focus on increasing efficiency while lowering their operating costs despite the low energy prices. Capstone microturbines are becoming a brand name to which customers turn for highly reliable and low-maintenance energy solutions within the global oil and gas industry,” stated Darren Jamison, President and Chief Executive Officer at Capstone Turbine Corporation.

January 2015 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it recently received an order for fifteen C65 microturbines for shale oil and gas customers in the United States.

Horizon Power Systems, Capstone’s exclusive oil and gas distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan, and Wattenberg Shale plays, secured the order to support the continued success in the U.S. shale oil and gas market, despite the recent oil price decline. The order will serve various facets of the shale oil and gas production process including the powering of central processing stations, metering stations, well-head operation, and flare reduction.

According to the U.S. Energy Information Administration’s (EIA) 2014 Annual Energy Outlook, a significant growth in demand for liquefied natural gas has led to the prediction that the U.S. will become a net exporter of natural gas in just a few years. The growth in demand for natural gas enables oil and gas producers to invest in more efficient and environmentally-friendly power generation solutions, strengthening the market from within.

With oil, gas, and other natural resources serving as Capstone’s largest market segment, shale plays have become a major focus going into 2015. By providing top shale oil and gas operations with ultra-low emission, low maintenance, and reliable microturbines, they are able to operate more efficiently and for longer periods of time than typical reciprocating engine generators. This helps to solidify Capstone’s position as the preferred option for new and repeat oil and gas customers.

Capstone microturbines can be used in all phases of oil and gas production including upstream, midstream, and downstream operations in both onshore and offshore applications. Since many of these operations are situated in remote locations, Capstone microturbines align perfectly with the needs of oil and gas businesses to ensure they are successful in bringing natural gas to market.

“Stability and reliability are key selling factors as we continue to penetrate the U.S. oil and gas shale markets, and we hope to continue to grow our business by expanding our Capstone market share even in a tight natural resource market,” said Sam Henry, President of Horizon Power Systems. “Capstone microturbines continue to become a preferred power generation option for oil and gas producers that want a stable and reliable solution to optimize their on-site performance and reduce operational costs,” added Henry.

August 2014 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today that it received an order for seventy five C65 microturbines, scheduled for shipment through December 2014, from Horizon Power Systems for several U.S. Oil and Gas Customers.

The order was placed by Horizon Power Systems, Capstone’s distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan, and Wattenberg shale plays. Recognizing Capstone’s demonstrated success in oil and gas operations, multiple customers are again choosing clean and green microturbine technology to power their production and compression operations.

This order will expand Horizon’s fleet to approximately 700 Capstone microturbines, the majority of which serve the demanding oil and gas market. The microturbines will provide prime power and serve all stages of oil and gas production including central processing station power, wellhead operation, transmission, and flare reduction.

The U.S. shale plays continue to see consistent growth with no slowdown in sight. According to the latest government data as cited in an October 2013 article in Investors Daily, the Permian Basin oil production is quickly approaching one million barrels per day. Estimates suggest there is still $3 trillion worth of oil and more than $300 billion of natural gas yet to be extracted from this shale play alone.

Furthermore, the U.S. Energy Information Administration (EIA) states that the Eagle Ford shale play produces over one million barrels of oil per day with a total estimate of over three billion barrels yet untapped. Additionally, according to the EIA, the Barnett Shale play has the largest producible reserves of any onshore natural gas field in the U.S. with a current output of over four billion cubic feet per day, and Wattenberg shale play has more than 22,000 active wells extracting more than 100,000 barrels of oil and 740 million cubic feet of gas per day according to the EIA. These shale plays alone demonstrate how robust and rich the oil and gas market continues to be in the U.S.

Capstone’s proven track record of producing ultra-low emission, low maintenance, and extremely reliable microturbines is exemplified by the repeat business from our customers, especially in the oil and gas sector. Successful operation of microturbines in this sector strengthens Capstone’s position in the market as the preferred option for many producers.

Capstone microturbines do not require lubricants or coolants and have only one moving part thanks to a patented air bearing. This ensures around the clock availability and uptime, which maximizes oil and gas production. Also, the microturbines are very clean with extremely low emissions, meeting Tier 4 emission standards without a requirement for after treatment unlike many reciprocating engine manufacturers.

Sam Henry, President of Horizon Power Systems, stated, “Customers rely on Horizon and Capstone for clean, reliable power through all weather conditions. 105 degrees F, 90% humidity in the Eagle Ford Shale, 105 degrees F and very low humidity in the Permian Shale, and 0 to 100 degrees F in the Mancos Shale. Oil and gas producers love the rugged Capstone microturbines because they can handle these conditions and operate continuously with minimal maintenance requirements.”

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.”