Capstone Secures a 9-year Follow-on Factory Protection Plan (FPP) for a European Customer with 392,000 Hours of Successful Op...
August 23 2018 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, announced today that it has secured a
significant Factory Protection Plan (FPP) aftermarket long-term
service contract renewal from a key European customer. The 9-year
FPP renewal is for fourteen C60 microturbines that have been
operating for a cumulative of 392,000 hours since 2008.
Biogaz Service, Capstone’s exclusive distributor for France,
secured the follow-on FPP contract renewal, which supports the
continued operation of these microturbines for what will be an
almost twenty year period through September of 2027.
“A central component to Capstone’s strategic growth strategy is
to increase our quarterly aftermarket accessories, parts, and FPP
service revenue to the point that it completely covers our
quarterly operating expenses. Achieving this goal will eliminate
our quarterly profitability risk while simultaneously unlocking our
upside growth potential to enable market-based and national account
pricing opportunities,” said Darren Jamison, President and Chief
Executive Officer of Capstone.
The site was commissioned in June 2008 and is located in
northern France near the city of Rouen. The fourteen Capstone C60
microturbines are fueled by paper-derived digester gas and the heat
from the microturbines’ exhaust is fed to a common header with the
recovered heat being used by the plant’s paper mill processes,
resulting in an overall highly-efficient installation.
“Capstone is unique in the clean technology space in that our
microturbine technology has a demonstrated twenty years of useful
life, and we also are willing to guarantee the life cycle costs on
an installation that already has almost 400 thousand operating
hours,” said Jim Crouse, Executive Vice President of Sales and
Marketing for Capstone. “This paper-derived site highlights the
value our customers can achieve from the installation of our
microturbines, the innovation possible with the application of our
unique technology, and the long useful life that can be achieved
from our products when leveraging the factory-backed FPP program,”
added Mr. Crouse.
Capstone’s innovate FPP program is an industry-leading
aftermarket service plan, delivering peace of mind, predictable
maintenance costs and remote monitoring capabilities at an
economical price. The all-inclusive long-term FPP contract helps
ensure business continuity while normalizing maintenance costs with
a simple fixed maintenance fee per year regardless of the annual
scheduled or unscheduled maintenance required.
“Capstone continues to expand its aftermarket service offering
to be more competitive in the distributed generation marketplace
and is now bundling our product, accessories, and service contracts
to make our value proposition even more compelling to the end-use
customer,” said Jeff Foster, Senior Vice President of Customer
Service for Capstone.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST) is the world’s leading producer of low-emission microturbine
systems and was the first to market commercially viable
microturbine energy products. Capstone has shipped over 9,000
Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone is a member of the U.S.
Environmental Protection Agency’s Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation’s energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A DQS-Certified ISO 9001:2015 and ISO
14001:2015 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in
the United States, Latin America, Europe, Middle East and
Asia.
For more information about the company, please visit
www.capstoneturbine.com. Follow Capstone Turbine on Twitter,
LinkedIn and YouTube.
Forward-Looking Statements
This press release contains “forward-looking statements,” as
that term is used in the federal securities laws. Forward-looking
statements may be identified by words such as “expects,” “believe”,
“objective,” “intend,” “targeted,” “plan” and similar phrases.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone's
filings with the Securities and Exchange Commission that may cause
Capstone’s actual results to be materially different from any
future results expressed or implied in such statements. Capstone
cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
“Capstone” and “Capstone Microturbine” are registered trademarks
of Capstone Turbine Corporation. All other trademarks
mentioned are the property of their respective owners.
CONTACT:
|
Capstone Turbine
Corporation |
|
Investor and investment
media inquiries: |
|
818-407-3628 |
|
ir@capstoneturbine.com |
|
|
|
Integra Investor
Relations |
|
Shawn M. Severson |
|
415-226-7747 |
|
cpst@integra-ir.com |
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