CAPSTONE’S ENERGY FINANCING JOINT VENTURE EXECUTES FIRST AGREEMENT
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Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced that its energy financing joint venture, Capstone Energy Finance, executed a five-year agreement with a large greenhouse operation in Colorado.
Multiple propane-fired C65 microturbines will be installed in stand-alone mode at a remote location to provide electricity for the Colorado greenhouse. Without a local utility grid system in place, the greenhouse was forced to start building their business with traditional diesel engine driven generator sets that are dirty and noisy. Capstone microturbines were selected as the replacement energy solution because Capstone Energy Finance can provide a much lower emissions solution without a capital investment.
“Capstone Energy Finance provides customers the opportunity to purchase more cost-effective electricity, enter into long-term rentals or even lease microturbine energy systems under long-term agreements,” said Kenda Brown, President of Capstone Energy Finance. “This enables a wide range of customers to take advantage of our energy offerings; not just our microturbines, but also the ancillary equipment required to provide a complete energy solution.”
Capstone Energy Finance enables customers to purchase electricity generated by a Capstone microturbine energy system installed at their facility with no upfront capital investment. Alternatively, customers can also lease or rent long-term a Capstone energy system by locking in a fixed rate for a period of 5 to 20 years. Capstone Energy Finance monitors and maintains the energy system for the entire term of the agreement, enabling businesses to operate without having to depend on volatile utility rates or unreliable engine driven generator sets.
“We have developed an opportunity pipeline of over $60 million in potential projects since the launch of Capstone Energy Finance in late 2015. Several of the projects we identified resulted in equipment sales through our traditional distribution network, as many customers in the end opted to purchase the equipment for maximum total financial savings,” said Darren Jamison, Capstone’s President and Chief Executive Officer. “It’s exciting to get our initial Capstone Energy Finance project and I look forward to many more to come as Capstone Energy Finance offers a complete array of financing products through structures such as energy service agreements, or ESAs, power purchase agreements, or PPAs, leasing, long-term rentals and various ‘as-a-service’ offerings,” added Mr. Jamison.