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Wednesday, Jul 6, 2022

Capstone Sells Extended Warranty

Capstone Green Energy Corp. has signed a 10-year factory protection plan for an 800-kilowatt microturbine system in New Mexico. The company’s stock surged on Friday.

The protection plan was secured by Horizon Power Systems, the exclusive Capstone distributor for the Rocky Mountains and Western Canada, the company said in a release. 

The C800S Signature series microturbine system was installed in October 2020 at a at a remote gas compression station in Southeast New Mexico.

Long-term parts and labor service agreements provide full coverage protection by locking in the cost of maintenance parts and labor expenses for the term of the contract, which is a value add to the end-use customer, the company said in its release.

Darren Jamison, chief executive of Capstone, said that what the company brings to the energy market is the ability to meet a customer’s operational needs for a power supply in a remote location while providing them with financial savings through a long-term service contract. 

“Continuing to grow our Energy as a Service business which is comprised of long-term (factory protection plan) contracts, aftermarket service parts, application and engineering services, and long-term system rentals, is critical to our growth and long-term profitability,” Jamison said in a statement. 

Shares in Capstone (CGRN) closed up 26 cents, or nearly 6 percent, to $4.70 on the Nasdaq on Friday, a day when that market closed up at less than 1 percent. 

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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