Large Independent Producer Orders 31 C65 Microturbines

February 2012 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, today announced it received a follow-on order for 31 C65 microturbines from a large oil & gas producer in the Eagle Ford shale play already operating a fleet of 71 C65 units.

Capstone distributor Horizon Power Systems (Pumps & Service) secured this follow-on order to support the user’s growing power needs. The latest order for 31 low-emission C65 microturbines brings the customer’s total to 102 units. The 102 microturbines will use natural gas to generate clean-and-green prime power for Lease Automatic Custody Transfer (LACT) units and transfer stations at remote well sites in the Eagle Ford Shale play.

“This follow-on order indicates that Capstone microturbines are quickly becoming the chosen power system to meet growing needs of major oil & gas producers nationwide,” said Sam Henry, Horizon Power Systems President. “The initial C65s proved to meet the customer’s high-caliber power needs, which is why they decided to enhance their power supply with additional Capstone microturbines.”

“Like the North American shale gas market, Capstone oil & gas sales are expanding rapidly,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Capstone’s durable, low-emission, and highly-efficient microturbines are perfect for around-the-clock production and optimizing well performance in the Eagle Ford Shale play and other plays nationwide.”

3MW Order From Large Oil & Gas Company

December 2011 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems announced today that it received a three-megawatt order from another oil & gas producer in the Eagle Ford shale play.

Capstone continues its penetration of the North American shale gas market with another multiple megawatt order from a different Independent Oil & Gas producer in Eagle Ford. This marks the fourth major Independent Oil & Gas Producer to turn to the Capstone technology in the U.S. shale market.

Capstone distributor Horizon Power Systems (Pumps & Service), which secured the order with the new exploration and production company, expects the customer will continue to order additional C1000 Power Packages to meet their power generation needs in 2012 after the successful installation and commissioning of the first three systems scheduled to be completed in the next 90 days.

“It’s great to get another significant oil and gas producer to adopt Capstone’s cutting edge turbine technology,” said Sam Henry, Horizon Power Systems (Pumps & Service) President. “They, like other Eagle Ford producers, are understanding the high reliability and low emission benefits of the Capstone family of products and the important role microturbines can play in ensuring around-the-clock energy production,” added Henry.

The three C1000’s will provide three megawatts of clean and green prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford shale play. The microturbines, fueled by pipeline quality gas, will produce electricity to provide all power to the onsite equipment, including heaters, pump motors, circulation pumps and distribution panels.

“The adoption and deployment of Capstone microturbines continues to accelerate in the worldwide oil & gas markets,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Specifically, we continue to see very strong order activity in Russia for associated gas applications and in the Marcellus and Eagle Ford shale plays here in the U.S.,” added Crouse.

Horizon Power Systems Secures Order for Three C1000s

September 2011 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean-technology manufacturer of microturbine energy systems, today announced that its Canadian distributor, Horizon Power Systems, sold three C1000 Power Packages to Genalta Power Inc. in Canada.

Genalta Power (www.genaltapower.com) is a privately held Canadian corporation that develops, owns, and operates independent power plants that produce and sell environmentally-friendly electricity from waste energy sources. These sources can include waste heat recovery, waste fuel gas, and waste pressure projects. The company capitalizes on opportunities in the independent power market by actively pursuing development of dependable, cost-effective and environmentally responsible power generation facilities. Genalta is developing projects in strategic regions of North America with an emphasis on the oil and gas industry.

The three Capstone C1000s will be installed at a Genalta client’s natural gas processing plant.

The C1000 Power Packages will be fueled by gas captured from refinery flares. Today, a number of refineries, landfills, and wastewater treatment plants flare waste gas into the atmosphere, which increases CO2 gas emissions and global warming. Capstone microturbines are an ideal solution since they use the waste gas to produce reliable and clean renewable energy onsite.

“Genalta is committed to converting waste energy sources into power that can be used at client sites or sold back to the grid,” said Graham Illingworth, Genalta CEO. “Capstone microturbines are ideal power sources for these types of renewable energy applications.

“The three C1000s will help the processing plant lower its energy costs and emissions,” said Todd Taylor, Horizon’s Vice President and Corporate Account Manager in Canada. “The province of Alberta, Canada, has strict regulations to reduce gas flaring among various industries. The Capstone microturbines will play a key role in helping the plant meet those regulations.”

Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing added, “This sale is a strong indication of Capstone’s opportunity to significantly grow our established presence in the Canadian oil and gas industry. Horizon Power Systems has deep experience and strong relationships with oil and gas producers throughout the country.”

 

Oil & Gas Customers Order 30 More C65s

August 2011 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, received an order for 30 C65 microturbines from Pumps & Service, one of Capstone’s long-standing distributors.

This latest order follows several other significant orders form Pumps & Service (Horizon Power Systems*). Pumps & Service sold the units to multiple oil and gas customers and will provide installation, commissioning and long-term service support. Pumps & Service continues to see strong demand from oil and gas companies throughout the Rockies and Texas. “Customer adoption of Capstone microturbines in the oil and gas sector continues to expand,” said Sam Henry, President and CEO of Pumps & Service. “We have also seen increasing quote activities in CHP and renewable projects throughout our territory.”

The latest order for 30 low-emission C65 microturbines will provide prime power to various customers and brings the total purchased by Pumps & Service in the last 12 months to more than 150 units.

“The fact that Pumps & Service has now received additional orders from multiple customers shows the tremendous job Pumps & Service is doing in the oil and gas space with the Capstone technology,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing.

*NOTE:  The business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.

Order for 22 C65s in Eagle Ford

May 2011 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, received another order for 22 C65 microturbines for one of the world’s largest independent oil and natural gas companies.

This latest order is the second such follow-on order to the first 18 unit C65 order received back in August. All three orders are for Capstone C65 natural gas product and together total 64 units in 9 months from this new oil and gas customer. Capstone’s local distributor Pumps & Service (Horizon Power Systems*) sold the units and will provide installation, commissioning and long term service support.

Pumps & Service has received 20 MW of new orders over the past ten months from three major oil and gas companies exploring large shale reserves — or plays — in the United States. Customer adoption of Capstone microturbines in the oil and gas sector continues to expand in the U.S. The U.S. shale 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.

The latest order for 22 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.

“The fact that Pumps & Service has now received orders totaling over 20MW in less than a year goes to show the tremendous market penetration Pumps & Service is getting in the shale gas space with the Capstone technology,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing.

*NOTE: The business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.

Order for Six C65s From Producer With Current Capstone Fleet

March 2011 – Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, today announced it sold six additional C65s to a prominent natural-gas producer whose current fleet of 49 Capstone microturbines has exceeded 1 million run time hours.

Pumps & Service (Horizon Power Systems*), the Capstone Turbine distributor responsible for selling and securing the robust fleet of natural gas microturbines since 1999, indicated that the six additional C65 microturbines will expand the producer’s minigrid system in New Mexico’s San Juan Basin. The six new C65 microturbines, which will be installed in June, will be part of a microturbine generation station that provides power to pumping and water transfer units at remote sites via a complex underground electrical system.

“This is Pumps & Service’s longest running project using Capstone microturbines,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “With extremely remote wellsites in mountainous terrain that averages 6,500 feet in elevation, the producer needs an exceptionally reliable power source. Many of the microturbines in this company’s fleet have run for 12 years. They are incredibly durable.”

In Northern New Mexico’s rugged mountains, wellsites often are located five miles or more from a central facility. The central facility is key to the production process because it collects water pumped from the ground at each remote site. Traditionally, the water has been hauled through the rugged terrain by truck to the central facility, making the production process extremely expensive.

Capstone microturbines allow the producer to pump water from tanks at each wellsite to a central water disposal facility, where the water is then returned to the ground, thus eliminating the need for water hauling. In addition to significantly lowering costs, the removal of water trucks from the mountain roads eliminates harmful emissions and excessive dust.

“All the power for the producer’s minigrid comes from the Capstone microturbines,” said Sam Henry, Pumps & Service President. “We work hard to keep the San Juan Basin pristine by offering highly efficient, extremely reliable and low-emission Capstone microturbines that seldom require maintenance. Our customer is replacing high emission, high maintenance pump-jack engines that were installed at wellsites with Capstone microturbines, which ensures a cleaner San Juan Basin.”

*NOTE:  The business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.

Follow-On Order for Six Megawatts

January  2011 – Less than a month after receiving a three megawatt order from a large independent oil and gas company, Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, received a follow-on order from the same company for six more C1000 Power Packages.

Capstone distributor Pumps & Service (Horizon Power Systems*), which secured both orders from the same exploration and production company operating in the Eagle Ford Shale play in South Texas, expects the customer will continue to order additional C1000 microturbines in 2011. Today’s announcement is the fifth order Pumps & Service has received in recent months from large oil and gas companies operating in significant shale reserves in the United States.

“This oil and gas producer understands the high reliability of Capstone microturbines and the important role our microturbines play in ensuring round-the-clock energy production,” said Sam Henry, Pumps and Service President.

The six C1000s together will provide six megawatts of clean and green prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford Shale play. The microturbines, fueled by pipeline quality gas, will produce electricity to provide all power to the onsite equipment, including heaters, pump motors, circulation pumps and distribution panels.

“Sales of the C1000 are accelerating to companies in the oil and gas industry,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “These companies know our low-emission microturbines help oil producers meet stringent EPA air-permitting requirements and also are impressed with our microturbines’ high reliability and low maintenance.”

*NOTE: The business segment of Pumps and Service responsible for sales and service of Capstone microturbines changed its name to Horizon Power Systems.

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.

Prominent Oil and Gas Developer Orders 18 C65s

August 2010 – Capstone Turbine Corporation (www.capstoneturbine.com ) (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.

C600 Sold for Use in Marcellus Shale Play

July 2010 – Capstone Turbine Corporation (www.capstoneturbine.com ) (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, sold the low-emission C600 microturbine to one of the largest natural gas producers in the United States.

The company is producing natural gas from six key reserves — or plays — across the United States. It will use electricity produced by the C600 to power a compression station associated with the Marcellus Shale play, labeled a “super giant” oil field that spans northern West Virginia, Pennsylvania and southern New York.

“Air permitting has become a major concern for developers and producers,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “Capstone’s clean-and-green, low-emission microturbines can play a key role in ensuring continued development of these rich shale plays. Because microturbine emissions are considerably lower than internal combustion engines, it is easier for developers to meet increasingly stringent requirements.”

The U.S. Environmental Protection Agency’s (EPA) Clean Air Act has strict requirements for emissions levels at natural gas sites. The EPA reviews stationary equipment at wellheads and compression stations along pipelines to ensure emissions meet federal requirements.

The Capstone C600, which produces 600 kilowatts of electricity, utilizes Capstone’s patented air bearing technology, which helps to provide lower operational cost and additional reliability.

“The six large shale plays have just begun to be tapped and could revolutionize the U.S. market for natural gas,” said Darren Jamison, Capstone President and CEO. “These six very large shale formations could pave the way for a new century of natural gas abundance and stable natural gas prices. We view this as a large potential market for our products.”