Capstone Turbine Corporation, the world’s leading clean technology manufacturer of microturbine energy systems, announced recently that it continues to expand its long-term microturbine rental business with an additional 1.6 MWs on top of the initial 3.6 MWs deployed last fall with one of the world’s largest oil and gas producers. The additional follow-on long-term rentals were secured by Capstone’s distribution partner, Lone Star Power Solutions, its exclusive Distributor for Texas, Arizona, and the Gulf States.
Expanding Capstone’s aftermarket business, which includes the long-term rental program, is an important element for the company achieving its near-term profitability goals. This is illustrated by the fact that 98% of Capstone’s fiscal 2019 gross margin came from the aftermarket business, which was only 38% of Capstone’s fiscal 2019 revenue.
The large oil and gas company sought a flexible and scalable energy solution that could be quickly and easily deployed and increase power capacity and accommodate the growing energy needs of its Permian basin installations. Capstone microturbines are reliable, modular and inherently redundant by design, as well as easily expanded or relocated to accommodate changes in customer’s future site loads.