A Shale Play For Capstone

Capstone Turbine Corp. has received an order for a C600S microturbine to provide prime power for an American oil & gas exploration and production company operating in the Ohio Utica Shale region.

“As crude oil trades near two-month highs on the back of the reported drop in U.S. stockpiles, we are seeing increased activity in the U.S. shale market,” said Darren Jamison, Capstone’s president and chief executive officer. “The recovering crude oil market and our growing momentum in the energy efficiency or CHP market is driving new order bookings as recently evidenced by our increased book-to-bill ratios.”

Capstone recently announced select preliminary first quarter financial results and reported booking $35.9 million in new product orders for the six month period ended June 30, compared to $20.4 million in the same preceding six months.

E-Finity Distributed Generation, Capstone’s distributor for the Mid-Atlantic and Southeastern United States, secured the order which is estimated to be commissioned in October. Capstone microturbines were selected for their ability to provide primary power in a location where no utility power is readily available, and because the customer already relies on Capstone microturbines at numerous remote water pumping and compression sites.

“This order demonstrates that pipeline construction is going to start allowing the abundant and clean-burning Appalachian natural gas to make its way into cities and communities, which will further enhance our ability to use our Capstone CHP and CCHP units for downstream businesses in the region,” said Jeff Beiter, Managing Partner at E-Finity Distributed Generation. “From wellheads to customer locations, Capstone is leading the way by delivering the energy solutions needed for reliable power generation,” added Mr. Beiter.

The C600S microturbine will operate on pipeline quality natural gas and be installed in standalone mode at a remote midstream natural gas compressor station in Monroe County, Ohio. The Signature Series microturbine will provide three-phase power to the remote site while reducing the customer’s carbon footprint, the company said.

“We are encouraged to see more U.S. oil and gas companies start to come back online and expand their operations in the shale-rich Ohio Basin,” said Jim Crouse, Capstone’s executive vice president of Sales and Marketing. “Capstone microturbines are ideal for remote oil and gas operations, especially those with harsh weather conditions.”