Benzinga | Jul 29, 2021 08:23AM EDT

Capstone Green Energy Signs A 10-Year Service Contract on 1.2 MWs of Microturbines Installed in the Fourth-Tallest Building in New York City

Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com)(NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com)(NASDAQ:CPST) ("Capstone" or the "Company"), announced today that RSP Systems (www.rsp-systems.com), Capstone's exclusive distributor for the Energy Efficiency, Renewable Energy and Critical Power Supply market verticals in New York, Connecticut, and Ohio recently signed a new Capstone Factory Protection Plan (FPP) long-term service contract for 1.2 megawatts (MWs) of Capstone microturbines installed on the fourth-tallest building in New York City located in midtown Manhattan.

The skyscraper's 1.2 MW energy efficiency plant consists of two Capstone C600S microturbines with Capstone's Integrated Heat Recovery Modules (iHRMs). The Capstone C600S systems have split bus bars allowing each C600S to reduce the building's electrical load at three individual points of entry (POE) for a total of six POEs. The thermal energy recovered by the iHRMs is fed to a 200-ton Broad Absorption Chiller, which operates year-round, providing cooling for the building, thereby reducing the load on the building's main electrical chillers. During the swing months of the year, when the cooling loads are less, the system can switch over to provide the recovered thermal energy to the building's heating load.

Capstone's Signature Series microturbines, utilizing a green energy technology with integrated iHRMs, provide an industry-leading combined heat and power (CHP) solution that is lightweight, quiet, and compact - the perfect complement to this sustainable design and construction in the heart of New York City. Capstone microturbines enable customers to meet their environmental, energy savings, and resiliency goals by complying with the world's most stringent emissions standards.

"Continuing to grow our Energy as a Service (EaaS) business is critical to continuing our transition to more predictable cash flows and higher margins. EaaS includes not only our long-term service contracts but also long-term rental contracts, installation services, maintenance service, spare parts, leasing, PPAs, and project financing, as well as our unique distributor subscription fee or DSS program," said Darren Jamison, Capstone's President and Chief Executive Officer. "The common elements are steadier cash flows, visibility, and higher margin rates, which are a critical part of our profitability plan," added Mr. Jamison.

In signing this service agreement, RSP Systems has raised their fleet covered by Capstone's FPP to over 25 megawatts. The Capstone FPP will provide the end-use customer with fixed costs for scheduled and unscheduled parts for the next 10 years, allowing for protection from future cost increases associated with the replacement of spare parts, commodity pricing, and import tariffs.

"RSP Systems continues to grow their remarkable install base and FPP contract base in the New York area by providing world-class service, from sales to application to aftermarket support," said Tracy Chidbachian, Capstone Director of Customer Service. "RSP Systems' highly experienced and talented team assists end-use customers in recognizing the value of the FPP program, which provides predictable maintenance costs and eliminates uncertainties about unexpected expenditures," concluded Ms. Chidbachian.