Benzinga | Dec 10, 2021 08:04AM EST

Capstone Green Energy Reports 10-Year Parts, Labor Service Contract On 800KW Energy System Installed At Remote Gas Compression Station In New Mexico, No Terms Disclosed

Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) ("Capstone" or the "Company"), a global leader in carbon reduction and on-site resilient green energy as a service (EaaS) solutions, announced today that Horizon Power Systems, the exclusive Capstone distributor for the Rocky Mountains and Western Canada (www.horizonpowersystems.com), signed a 10-year Parts and Labor Factory Protection Plan (FPP) service contract for a C800S (800 kilowatt) Signature Series Capstone energy system installed at a remote gas compression station in Southeast New Mexico.

The remote gas compression station replaced their out-of-date natural gas reciprocating engines with the Capstone Green Energy C800S energy system in order to handle the additional loads associated with the upcoming planned plant expansion while remaining compliant with New Mexico's stringent air quality emissions standards. Commissioned in October 2020, the C800S provides 24x7 prime power to the station's A/C loads with N+1 redundancy and also meets New Mexico's emissions requirements without additional aftertreatment.

Capstone's industry-leading FPP long-term comprehensive service product will provide complete service coverage, parts and labor for both scheduled and unscheduled maintenance for the next 10-years protecting the end-use customer from future cost increases associated with labor, replacement spare parts pricing, commodities, import tariffs, and interest rates.

"Over 90% of Horizon Power Systems service contracts are long-term parts and labor agreements. Long-term parts and labor service agreements provide full coverage protection by locking in the cost of maintenance parts and labor expenses for the term of the contract, which is a value add to the end-use customer. Creating value in partnership and minimizing risk for our Distributors and end-use customers is a key element of our Energy as a Service business model," stated Tracy Chidbachian, Director of Customer Service.

"Meeting the customer's operational needs for a critical power supply in a remote location and doing so in an environmentally responsible manner while providing the customer financial savings through a long-term service contract is key to what Capstone Green Energy brings to the energy market," stated Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. "Continuing to grow our Energy as a Service business which is comprised of long-term FPP contracts, aftermarket service parts, application and engineering services, and long-term system rentals, is critical to our growth and long-term profitability," concluded Mr. Jamison.