Kineticor Chooses Capstone Microturbines

July 2015 – Capstone Turbine Corporation ( (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.