Capstone Sees Business Uptick from Microgrids and CHP

Nov. 10, 2014
Capstone Turbine has reported an uptick in microturbine orders as a result of new interest in combined heat and power and microgrids in the United States.

Capstone Turbine has reported an uptick in microturbine orders as a result of new interest in combined heat and power and microgrids in the United States.

“Microgrid and power resiliency demand seem to be picking up generally,” said Darren Jamison, president and CEO of the California-based microturbine manufacturer, during an earnings call webcast on November 6.

In all, the company shipped microturbines with total capacity of 12 MW in North America during the second quarter. The continent was rivaled only by Europe internationally, where Capstone made a shipment of the same size.

US customers included Oncor, a Texas utility with aggressive goals to make use of energy storage.  Oncor purchased Capstone’s low-emissions natural gas-fired C65 microturbine for use in a microgrid, according to Jamison.

Capstone also reported sales of CHP products in Kansas, two of them for a microgrid demonstration project at Black & Veatch’s worldwide headquarters and two for CHP in an office building. In the Mid-Atlantic, Capstone’s distributor Infinity secured an order for 25 microturbines with a capacity of about 1.6 MW to CHP projects at commercial and industrial operations.

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The company is closely watching the New York market – and in fact held its earnings call in the state as a precursor to an investor presentation on the state’s CHP potential.

“You will see very exciting growth,” Jamison said. “We are starting to see the real traction with great support by NYSERDA [New York State Energy Research and Development Authority].”

In all for the second quarter, Capstone reported 57 percent of its shipments for use in natural resource applications, including oil and gas; 39 percent for  use in energy efficiency or CHP; and 4 percent for use of renewable energy. North America accounted for 50 percent of Capstone’s market in the quarter; Europe 35 percent;. Africa 6 percent, Asia 5 percent; and Australia and rest of the world were each 2 percent.

In all, Capstone has shipped 8,000 microturbine systems worldwide.

The company’s second quarter revenue was $32.2 million and product revenue $26.7 million. It has a product backlog of $172.3 million as of September 30 compared to $175.2 million at June 30, 2014, and $149.8 million at September 30, 2013. Revenue for the second quarter was $32.2 million, compared with $23.3 million for the first quarter, and $35.3 million for the second quarter last year.

A member of the U.S. Environmental Protection Agency’s Combined Heat and Power Partnership, Capstone has made a commitment to energy efficiency and greenhouse gas emissions reduction.

About the Author

Elisa Wood | Editor-in-Chief

Elisa Wood is an award-winning writer and editor who specializes in the energy industry. She is chief editor and co-founder of Microgrid Knowledge and serves as co-host of the publication’s popular conference series. She also co-founded RealEnergyWriters.com, where she continues to lead a team of energy writers who produce content for energy companies and advocacy organizations.

She has been writing about energy for more than two decades and is published widely. Her work can be found in prominent energy business journals as well as mainstream publications. She has been quoted by NPR, the Wall Street Journal and other notable media outlets.

“For an especially readable voice in the industry, the most consistent interpreter across these years has been the energy journalist Elisa Wood, whose Microgrid Knowledge (and conference) has aggregated more stories better than any other feed of its time,” wrote Malcolm McCullough, in the book, Downtime on the Microgrid, published by MIT Press in 2020.

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