The Sierra Nevada Brewing Co. has installed microturbines made by Capstone Turbine Corp. at its Chico brewery to generate electrical and thermal energy on site.

The Chico brewery can convert the exhaust heat from the Capstone turbines into hot water or steam for the brewing process.

Regatta Solutions, the exclusive distributor in California of the microturbines made by the Chatsworth company, installed the equipment May 17.

The 2 megawatt Capstone microturbines are powered by natural gas and replaced aging fuel cells. The microturbines complement 2 megawatts of solar installed at the brewery.

Cheri Chastain, sustainability manager for Sierra Nevada, said the company is always evaluating how it can be more efficient and reduce operating expenses.

“A (cogeneration) system made the most sense for us and Capstone microturbines were the best fit for our brewery,” Chastain said in a prepared statement.

Capstone shares closed down 7 cents, or more than 4 percent, to $1.55 on the Nasdaq.