Capstone Turbine Corporation, clean-technology manufacturers of microturbine energy systems, announced it has executed a Memorandum of Understanding with BPC Engineering and Tatneft Oil to buy 38 microturbines totaling 16.2MW for multiple associated gas-to-energy projects in Tatarstan, Russia. The agreement also includes an option for an additional 20MW under the same terms and conditions if ordered by Tatneft before 31 December 2012. Tatneft is the sixth largest oil company in Russia and employs more than 70,000 individuals across Russia.
The MOU summarizes the three party’s responsibilities, commitments, pricing and terms for the microturbines to be shipped over an expected two-year period and the option for the parties to add an additional 20MW by the end of 2012. This agreement comes three months after the companies met with Tatarstan President Rustam Minnikhanov who declared that Tatarstan’s oil companies and specifically Tatneft will be deploying Capstone microturbines and Capstone Organic Rankin Cycle CC 125 machines for associated gas to energy projects. Also included in the MOU is the purchase and installation of a pilot ORC CC125 to be installed in early 2012. The decision to deploy additional CC125 units will be determined following a full evaluation of the initial pilot installation.