Capstone Turbine Corp (NASDAQ:CPST), the maker of clean-energy microturbines, revealed Tuesday that it has won its first-ever offshore oil and gas order in India, the world’s third-biggest oil importer and consumer, which is trying to ramp up crude oil production.
In a statement, the company said Brio Energy Private Limited, Capstone’s exclusive distributor for India, secured the order for two C65 microturbines on a wellhead platform in the Arabian Sea.
According to the company, the Capstone microturbines will run on raw associated gas released from the wellhead, providing a highly reliable power source to the entire platform. As a result, the installation will be fully automated and primarily operated remotely. The company explained that communication to the microturbines will be done over radio frequency and controlled using the Capstone supervisory control and data acquisition (SCADA) system.
READ: Capstone wins first C200 Signature Series microturbine order from India’s oil-rich state of Assam
The company said the large oil and gas producer was looking for a “reliable power source” that is independent and easy to operate and selected Capstone microturbines for its “reliability and low maintenance.”
“As India’s demand for primary energy increases over the next several years, we look to capitalize to the fullest of our ability on this enormous opportunity by growing our product offerings into this rapidly evolving market,” said Capstone CEO Darren Jamison.
“Capstone microturbines’ extremely low emissions, low maintenance, and demonstrated oil field reliability make them a perfect operational fit for stand-alone offshore applications,” he added.
India currently imports nearly 82% of its crude oil needs but aims to reduce it to 67% by 2022 by replacing it with local exploration, new renewable energy, and other indigenous fuels. In 2018, India had estimated crude oil reserves of 594.49 million tonnes and natural gas reserves of 1339.57 billion cubic meters.
According to the Indian Brand Equity Foundation, India’s oil and gas sector is among the country’s eight core industries. India’s high-octane economic growth is closely linked to energy demand and the oil and gas sector’s rapid projected growth.
Capstone, based in Van Nuys, California, 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.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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