Capstone Turbine Corporation (NASDAQ:CPST), the maker of clean-energy microturbines, said Monday it has secured its first significant combined heat and power (CHP) energy efficiency project order in Bolivia from ceramic products manufacturer Ceramica Guadalquivir.
In a statement, the Van Nuys, California-based company said the project will utilize its C600S products in a five-bay enclosure to allow for future expansion up to one megawatt. The exhaust energy from the green microturbine will be used in the ceramic tile and brick drying process.
In early afternoon trade on Nasdaq, shares in Capstone were 3% higher at $0.6897.
Monelco SRL, Capstone’s local distributor in Bolivia, secured the order which is expected to ship in August and be commissioned by the end of October.
READ: Capstone Turbine improves margins significantly in fiscal first quarter, has strong order book
The company noted that the order is the “first industrial deployment” for Monelco in Bolivia and expands the business beyond the traditional oil and gas sector. At least 80 Capstone microturbines are already installed at Bolivia’s state-run oil giant Yacimientos Petrolíferos Fiscales Bolivianos.
Play for Bolivia’s industrial manufacturing sector
The heat and power project for Ceramica Guadalquivir gives Monelco impetus to now sell Capstone’s microturbine technology to Bolivia’s industrial manufacturing sector.
Manufacturing accounts for 14% to 15% of Bolivia's gross domestic product and leading manufactured goods include textiles, clothing, consumer goods, processed soya, refined metals, and refined petroleum.
“The order is significant as it demonstrates our continued market development in yet another strategic geography,” said Capstone Turbine CEO Darren Jamison. “We continue to see a growing demand for our products in South America where microturbines can offer substantial cost savings for commercial and industrial customers.”
Jamison pointed out that the company was getting orders from Brazil, Columbia, Chile and now Bolivia where it had “little or no” commercial industrial business just a couple of years ago.
“As a second-generation business leader in Bolivia, I am committed to bringing automation and new technology into my family run industrial manufacturing business as we look to be a leader in red ceramic products in both Bolivia and the international markets,” said Oscar Vargas Hernandez, who is the general manager at Ceramica Guadalquivir.
He explained that he was looking for an “environmentally friendly” way to reduce energy costs and Capstone’s technology fits the bill by providing the “resiliency” and option to quickly expand the project as the business grows.
“Capstone is pleased to see Monelco’s expansion into the industrial space,” said Jim Crouse, executive vice President of sales and marketing at Capstone. “Bolivia holds an untapped CHP opportunity for Capstone.”
Capstone offers a product line-up of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.
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