Capstone In Alaskan Oil & Gas Rental Deal
By Mike Brezonick01 July 2019
Capstone Turbine Corp. announced it is continuing to expand its long-term microturbine rental business with a 1.0 MW long-term rental contract with an exploration and production company focused on the development of oil and gas resources in Alaska.
Over the last year, Capstone has found increasing application for its microturbines in the natural gas compression industry by supplying turbines powered by slip gas that has typically been vented or flared. The electricity generated by the microturbines is then used to power compressor station functions.
A story on this trend appeared in the June issue of COMPRESSORTECH2 that can be reached by clicking here.
This newest 1 MW long-term rental was secured by Capstone’s longtime distribution partner, Horizon Power Systems, the exclusive Capstone distributor for Colorado, Idaho, Montana, New Mexico, Oklahoma, Utah, Wyoming, Alberta, British Columbia, Northwest Territories, Saskatchewan and Yukon.
This latest long-term rental is in addition to a current C1000 Series microturbine rental fleet of 4.6 MW and a previously announced 1.6 MW that are expected to be deployed in September. Expanding its aftermarket business, which includes the new long-term rental program, is an important element for the company achieving its near-term profitability goal, the company said.
“The expansion of our long-term rental fleet from our initial start of 3.6 MW last fall, to a total of 6.2 MWs, puts us well on our way to reaching our strategic goal of 10 MW,” said Darren Jamison, Capstone’s president and chief executive officer. “Long-term rentals are a critical part of our 100% expense absorption plan and are expected to help us reach our near-term profitability goals.”
“Natural gas generators are gaining popularity in the rental market due to their lower emission profile compared to the high environmental impact of diesel rental generators. Capstone microturbines are recognized as the low emission leader in the stationary power space,” said Jim Crouse, Capstone’s executive vice president of Sales and Marketing.
“Horizon did a great job in securing this C1000S long-term rental agreement, and it further improves our high-margin recurring aftermarket revenues,” said Jeff Foster, Capstone’s senior vice president of Customer Service and Product Development. “I’m very confident we will reach our goal of 10 MW as planned.”