Capstone Turbine Corporation (NASDAQ:CPST) said Tuesday that it secured a repeat order for five C200 Signature Series (C200S) microturbines for a federal railway infrastructure project from The Railways of Yakutia.
In a statement, Capstone, which builds low-emission, clean-energy microturbine technology, said DV Energy, its distributor in the Far Eastern Federal District in Russia, secured the 1-megawatt (MW) order, which is expected to be commissioned in November 2020.
"We continue to see growth in Europe and Russia as our business in those regions expanded 20% year-over-year," said Capstone CEO Darren Jamison.
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"DV Energy is doing a great job representing Capstone in the Far Eastern Federal District and becomes a top 25 global distributor of ours with this most recent win," he added.
The natural gas-fueled C200S microturbines will act as the primary power source for the Aldan Railway Station and will also provide heating for the main building, reducing its operational costs and eliminating the uncertainty of grid fluctuations. The microturbine will operate in grid connect mode, which enables the customer to operate with the utility in a load sharing capacity.
On-site power, heating and energy efficiency
In addition to generating on-site power and heating, the microturbines will help railway operators meet key strategic sustainability targets for increased energy efficiency. Capstone Turbine's innovative technology was selected for its scalability, resiliency, and ability to reduce energy costs while producing ultra-low emissions reliably.
The Russian railway system is the third-longest rail network in the world, with more than 85,000 kilometers (52,800 miles). The rail system is the primary mode of transportation in Russia, accounting for about 88% of the country's transportation system. According to the International Energy Agency (IEA) and the International Union of Railways, the Russian Railways is one of the most energy-efficient railway companies in the world.
"Russia, with its harsh environments, has historically been a very good market for us and currently has over 1,400 units in operation in the region," stated Jen Derstine, Capstone's Vice President of Marketing and Distribution. "We are seeing steady sales growth in Russia as we continue to diversify and expand our focus on combined heat and power (CHP) projects from predominantly oil and gas applications. Russia holds a tremendous opportunity for distributed generation technologies," concluded Ms. Derstine.
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.
Capstone’s stock recently traded at $2.69 a share in New York.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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