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Capstone Turbine Corporation has said that E-Finity Distributed Generation, Capstone's exclusive distributor for the Mid-Atlantic, Southeastern United States and the Caribbean, has signed a long-term Factory Protection Plan (FPP) service contract covering Capstone's single largest combined heat and power (CHP) installation with 5 megawatts (MW) of Capstone Microturbines.
"While all of the offerings from our aftermarket business are important to Capstone, it is the FPP with its stable, predictable, long-term revenue and positive cash flow that really underpins both our near-term positive Adjusted EBITDA plans and our long-term sustainability and profitability outlook. The 5 MW CHP installation, now with its new 9-year FPP, is expected to benefit both Capstone and the end-use customer jointly over the life of the project, making it truly a long-term win-win energy partnership," concluded Darren Jamison, Capstone's President and Chief Executive Officer.
The five new Signature Series C1000's are commonly ducted together to inject the turbines' exhaust thermal energy directly into a drying process for a large ceramic tile manufacturer in the United States. This 9-year FPP will provide comprehensive service coverage, including engine overhauls, as well as all scheduled and unscheduled maintenance at a fixed cost for the entire 9-year term. The Capstone microturbines, commissioned in late October 2019, are used for 24x7 electrical and thermal generation and are configured with Capstone Dual-Mode technology that will "island" the power plant and provide back-up electrical and thermal power to plant operations in the event of a local grid power outage.
"The continued high adoption rate of our FPP, now with 54% of eligible customers covered, is driving our profitable aftermarket business to new highs," stated Jen Derstine, Capstone's Vice President of Marketing and Distribution. "By securing this newest contract, we have set another record of having 263 MWs covered under long-term service contracts, which provides the backbone for recurring, predictable, profitable revenue streams for many years and is a great asset to all our stakeholders including our distribution partners who perform the work under the FPP contract on behalf of Capstone," concluded Mrs. Derstine.