Capstone grows energy-as-a-service play
SUMMARY
Capstone's energy-for-hire business is expanding on the back of low carbon, off-grid gas power needs at upstream oil and gas projects.
By Callum CyrusCapstone Green Energy's energy-as-a-service (EaaS) has signed up four US-based customers in the oil and gas upstream sector, the company announced August 24.
The new contracts include a 1.4 MW long-term rental contract in Louisiana for deployment early next year, using gas-fired microturbines from Capstone's signature line of C800 and C600 microturbines to displace the client's existing reciprocating engine gensets.
Capstone will also deliver 390 kW of rented power from six C65 microturbines deployed to US shale fields, and 400 kW of power generation to an Alaska-based oil and gas operator. All three contracts will use generating units powered by natural gas.
The EaaS business is witnessing significant customer demand across a number of vertical industries, including oil and gas, says Capstone CEO Darren Jamison. Around 7 MW was taken out for hire before March 2021 and by the end of July Capstone had 34 MW under contract. By the end of Q1 2023, Capstone expects to have crossed the 50 MW milestone.
Capstone is injecting funding into the growth strategy, having recently raised $8mn in public funds. Jamison said oil and companies were responding to "growing pressure" to address climate change, and to prepare for a "lower-carbon future." He added: "The successful closing of our $8mn underwritten public offering combined with sourcing additional re-rent units allows us to continue to focus on achieving our previously announced next target of a 50 MW rental fleet, including re-rentals."
