Capstone Green Energy Corp. announced on Thursday that its exclusive distributor for the Rocky Mountains and Western Canada secured a long-term rental agreement for 30 microturbines to be installed at remote oil and gas well sites in the San Juan basin of New Mexico.
The C65 microturbine order brought in by Horizon Power Systems will provide power to units used to transport crude oil from the production site to a central storage facility, according to a release from the Van Nuys manufacturer.
The Energy-as-a-Service (EaaS) contract from the midstream oil and gas company adds to its current fleet of 45 microturbines in operation. The first Capstone microturbine was commissioned in 2015, the company’s release said.
Sam Henry, president of Horizon Power Systems, said that the capital outlay to build and launch 15 new remote well sites can be significant.
“By entering into an EaaS rental agreement for the microturbines, they will lower capital expenses while still getting the benefits of microturbines,” Henry said in a statement.
Capstone Chief Executive Darren Jamison added that along with providing ultra-reliability to these remote, unmanned sites, microturbines have the benefit of producing very low emissions.
“Now that several states are starting to require oil and gas companies to make emissions reductions, microturbines are proving to be an attractive option,” Jamison said in a statement.
Shares in Capstone (CGRN) closed down Friday by 3 cents, or 1.5%, to $1.97 on the Nasdaq, on a day when that market closed up at nearly 2.7%.