Tuesday, June 19, 2012

Capstone Turbine Corp. (CPST) Secures 4MW, 17 Microturbine Order with Russian Oil Powerhouse LUKOIL

Capstone Turbine, top global producer of advanced cleantech microturbines engineered for optimal low-emission, low-maintenance targets, announced today that the company has secured another important order, this time a 4MW order for 17 microturbines (ranging from 65kW – 1MW) from Russian hydrocarbon developer LUKOIL. This marks a very good quarter for CPST (ended, Mar 31), which reported some $49M in new orders, led by strong uptake of these advanced microturbines, as the company’s reputation for being first in the market with a commercial solution combines with increased demand by commercial/industrial customers looking to generate on-site power.

Destined for the remote oil fields of LUKOIL subsidiary, LUKOIL-PERM, these microturbines provide a robust source of localized prime power for nine power stations (five of which are already commissioned and generating on-site power). This is a very important deal with the subsidiary of one of oil superpower Russia’s top producers. In fact, LUKOIL accounts for approximately 2% of global crude supply.

These incredibly powerful microturbine systems will allow LUKOIL-PERM to achieve the 95% target set for generating the power needed via on-site gas consumption produced during hydrocarbon recovery. It is a really slick setup, and especially interesting because the incredibly reliable CPST microturbines make a perfect fit for the remote operational environment where the last thing operators want to do is repair energy supply hardware in the field. Perhaps even more importantly, though, is the fact that the CPST systems can readily handle the up to 7% hydrogen sulfide gas straight away, without needing to rely on a secondary process to treat the gas first.

CEO of BPC Engineering, Capstone’s Russian distributor who secured the massive multi-phase deal, Alexander Skorokhodov, emphasized the huge viability bonus these systems represent over gas turbines and piston engines, also noting the significance of the reduced cost compared to such inferior systems, as well as the better overall reliability/performance you get with the CPST hardware. Skorokhodov described the CPST implementation as the perfect “no-hassle” solution for rapidly and ably circumventing the way hydrogen sulfide rich gas chokes most engines into submission. BPC anticipates commissioning the other four power stations sometime in the fall of this year and the success of the deal itself should prove quite lucrative for both BPC and CPST moving forward as the industry clamors to achieve similar efficiency upgrades.

Certainly LUKOIL is a great notch to have on the belt and this deal improves that relationship handsomely, bolstering the company’s overall market position in the thriving Russian hydrocarbon sector.

Exec VP of Sales and Marketing at CPST, Jim Crouse, called the Russian oil market the company’s primary target and was extremely pleased at the repeated business from oil giant LUKOIL. With multiple orders from just this one major player alone, CPST is looking like they have already secured a very strong footprint in this prolific region.

With over 6,500 systems shipped worldwide to date, CPST is more than just the first player to commercialize viable microturbine technology; the company is becoming a beacon of low emission, robust energy infrastructure solutions and helping to bring about a total paradigm shift in energy efficiency. Such low-emission marvels are paving the way to a sustainable future and CPST is a proud member of the U.S. EPA’s Combined Heat and Power Partnership, a tip-of-the-spear organization which is helping to reshape domestic energy infrastructure.

This LA-headquartered award winner has seen its hardware log millions of documented runtime operating hours and continues to innovate technologically as the company’s global presence grows through sales offices in New York, Mexico City, Nottingham, Shanghai, and Singapore. Capstone is UL-Certified ISO 9001:2008 and has full ISO 14001:2004 certification as well.

For more information on this fast moving cleantech manufacturer, head on over to the Capstone Turbine Web site at: www.CapstoneTurbine.com

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