Capstone Realizes Opportunities in the Expanding California Cannabis Industry with Consecutive Orders for Two Grow Facilities
VAN NUYS, Calif., March 04, 2019 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq: CPST), the world’s leading producer of highly efficient, low-emission, resilient microturbine energy systems, announced today that it has received two orders for separate cannabis cultivating operations in Southern and Northern California. Cal Microturbine, Capstone’s exclusive California distributor, secured the orders which are scheduled for commissioning this spring.
Destined for a Northern California facility, the first order is for five C65 units and five absorption chillers. Together, the five-natural gas powered C65 units will provide 325 kilowatts (kW) of prime power plus 120-160RT cooling and 400kBTU/hr hot water for the indoor greenhouse facility. In addition to the on-site power generation, one of the C65 units includes the C65 ICHP California Air Resources Board (CARB) certified package which will also provide the added benefit of space conditioning and humidity control for the grow operation.
The second order destined for a grow facility in Southern California is for four C65 low emission units that will be paired with four chillers producing a total of 260kW plus 120-160RT cooling capacity. Although this second site has existing utility power connectivity, the customer is seeking to lower operating cost as a competitive advantage.
In addition to generating on-site power, the microturbine systems will help both grow operations meet their sustainability goals on improved energy efficiency while reducing waste by implementing integrated combined heat and power (ICHP) into the growing process.
“Cannabis grow houses require enormous amounts of energy and meticulous environmental conditions. These two orders represent an expanding niche market opportunity for our innovative low emission CHP and CCHP technology as we can help lower operating costs by reducing utility costs,” said Darren Jamison, President and Chief Executive Officer of Capstone. “These orders mark the second and third grow operations that have turned to Capstone’s microturbines within the past few months in California alone,” added Mr. Jamison.
Due to the remote nature and rising electric cost, the cultivators are increasingly interested in alternatives to the traditional utility-provided electricity. It can take several months or even years to secure the necessary upgraded electrical service required by the facilities. Capstone’s microturbines are able to provide on-site energy in a number of weeks as opposed to months or years and at a typically lower cost than the local grid.
“Not only are the utility companies unable to meet the short time frame of getting these grow facilities online in time, but the cost per kilowatt is also often higher. Capstone’s scalable microturbines were the best solution to meet the customer’s energy needs and to immediately start the cost reduction targets at the same time," said Jim Crouse, Executive Vice President of Sales and Marketing at Capstone.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq: CPST) is the world’s leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, providing scalable systems focusing on 30 kWs to 10 MWs that operate on a variety of gaseous or liquid fuels and are the ideal solution for today's distributed power generation needs. To date, Capstone has shipped over 9,000 of these systems into 73 countries logging millions of operating hours.
Capstone is committed to improving the efficiency of energy needs around the world, while simultaneously reducing global emissions of pollutants and greenhouse gases. Capstone’s systems help end users improve their impact on the environment, while still meeting power and reliability needs. During fiscal year 2019, Capstone saved end-use customers an estimated $194 million in annual energy costs and 314,000 tons of carbon.
Not only does Capstone enable customers to reduce CO2 and emissions, Capstone applies the same principals to its own environmental footprint and focuses internally on its environmental risks, energy consumption, waste disposal and carbon footprint. Capstone also strives to foster a corporate culture emphasizing its relationship with employees, customers and suppliers in order to ensure that Capstone’s corporate values are aligned with those of its employees, customers and suppliers.
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,” “believes,” “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.
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Released March 4, 2019