Capstone Turbine Corporation (NASDAQ:CPST), the maker of energy-producing microturbines, announced Tuesday it has secured its biggest order in more than four years.
Under an agreement with Green Energy Sustainable Solutions Inc, Capstone said the renewable energy company will use 12 Signature Series microturbines to generate 9.6 megawatts, complete with Capstone’s proprietary roof-mounted heat recovery modules as well as Capstone’s PowerSync control platform.
Payment terms will be secured by a letter of credit set up 30 days prior to each microturbine shipment, with shipments estimated to commence in early 2020 and conclude by that year’s end, according to a statement.
Capstone's stock increased 9.5% to $0.83 following the company's announcement.
Capstone, based in Van Nuys, California, noted that its agreement with Green Energy is the company’s largest order in the growing renewable energy market -- in addition to being its biggest order in four years.
Green Energy, based in Raleigh, North Carolina, makes bio-gas from pig manure, cow manure, and agricultural green waste. The bio-gas is compressed and cleaned before being injected into natural gas pipelines to create renewable natural gas. Green Energy’s initial biogas projects will be developed in six US locations in Idaho, Missouri and North Carolina, Capstone said.
"Capstone’s strategy has been and will continue to be focused on strengthening our core markets while diversifying into additional market verticals like biogas and renewable natural gas,” said Capstone CEO Darren Jamison.
Green Energy’s projects will be covered by a comprehensive 10-year Capstone Factory Protection Plan (FPP), according to a statement. The Capstone FPP is a comprehensive maintenance program designed to give financial peace of mind to microturbine customers by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance for the life of the microturbine system.