The initial 9.6 MW order is the largest received by Capstone in over four years and is the largest order in the growing renewable energy market vertical in the company''s history. Payment terms will be secured by a letter of credit set up 30 days prior to each microturbine shipment, with shipments estimated to commence in early 2020 and conclude by the end of that year.
Since 1997, the GESS team has been offering customers custom designed and built, green energy and energy efficiency solutions worldwide. Providing solutions for over 21 years, GESS has completed over 350 projects worldwide. The initial biogas projects will be developed in six U.S. locations in Idaho, Missouri and North Carolina.
All projects will be covered by a comprehensive 10-year Capstone Factory Protection Plan (FPP). The Capstone FPP is a comprehensive maintenance program designed to give financial peace of mind to microturbine customers by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance for the life of the microturbine system.
The biogas for the projects will be developed utilizing pig manure, cow manure, and agricultural green waste. The biogas will be compressed and cleaned before being injected into the natural gas pipeline to create renewable natural gas (RNG) thereby creating a renewable fuel to provide a lower carbon environment and a clean energy future.
According to a 2018 Navigant Consulting report for Southern California Gas Co., replacing less than 20 percent of the traditional natural gas supply with RNG captured from sources like dairies, wastewater treatment plants and landfills can achieve greenhouse gas (GHG) emissions reductions equivalent to converting 100 percent of buildings in Southern California to electric only energy by 2030. And using a mix of in and out of state RNG is three times more cost-effective in reducing GHGs than an electrification pathway.
"Capstone is excited to be partnering with GESS on the development of these biogas projects and helping create renewable natural gas as the fuel of choice in the new green economy," said Darren Jamison, Capstone''s President and Chief Executive Officer. "Capstone''s strategy has been and will continue to be focused on strengthening our core markets while diversifying into additional market verticals like biogas and renewable natural gas. The recent growth in our product bookings indicates the improving conditions in the U.S. economy, as current industry fundamentals remain favorable across most sectors where our clean and green products serve," added Mr. Jamison.
"The GESS team has spent years developing its biodigester solutions, securing the necessary land leases and manure rights to now be in a position to begin the large-scale rollout of U.S. based biogas and renewable natural gas projects," stated Shaun Lee, Chief Executive Officer at GESS International. "I have long been a champion of the Capstone microturbine technology by installing my first Capstone C30 back in 1997," concluded Mr. Lee.
Capstone Turbine Corporation
Capstone Turbine Corporation () (Nasdaq: CPST) is the world''s leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, providing scalable systems focusing on 30 kWs to 10 MWs that operate on a variety of gaseous or liquid fuels and are the ideal solution for today''s distributed power generation needs. To date, Capstone has shipped over 9,000 units to 73 countries and have saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.
For more information about the company, please visit Follow Capstone Turbine on Twitter, LinkedIn and .
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Forward-Looking Statements
"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
US,North Carolina,Raleigh,27609
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The anaerobic digester facilities will utilize 170 000 tons of dairy cattle manure and 80 000 tons of agricultural residues per plant from area farmers to produce 550 000 MMbtu worth of renewable natural gas (RNG). GESS plans to begin construction in late 2019 and begin operations by late 2020. The biogas plants will be located on several dairy cattle feedlots in Cassia County, Idaho.
GESS is excited to be a part of the welcoming community of Southern Idaho. These biogas projects create a new revenue stream for area farmers, reduce the environmental impacts associated with the agricultural industry, while also producing renewable energy that will reduce our fossil fuel use, and create economic development for a wonderful area of Idaho. There is plenty of opportunity for these types of projects in such a cattle-rich area and we look forward to working in Cassia County, said Seth Daughety, Grant Coordinator at GESS.
The project will bring nearly 100 jobs to the region, a minimum of 16 new full-time jobs per plant. The jobs will include truck drivers, transportation managers, inventory managers, mechanical engineers, plant managers, and plant laborers. The biogas plants will operate 24/7, 365 days a year.
With our strong dairy and cattle industry and commitment to sustainability, GESS International is a great fit for our region. We are thrilled to see this technology come to Southern Idaho, especially with a company like GESS that is bringing high-quality jobs for our workforce and investing in our community said Connie Stopher, Executive Director of Southern Idaho Economic Development.
Southern Idaho Economic Development is a joint venture of public and private sectors throughout the Magic Valley, formed to help diversify and strengthen the local economy by retaining and attracting business to the Southern Idaho region.
At a meeting, Shaun Lee, Director of Field operations for GESS, told commissioners that his company is hoping to install a plant on about 10 acres of the 450-acre of farmland that will convert hog wastes, as well as silage from county farm row crops, into renewable natural gas that would be sold to Duke Energy and possibly other power companies.
In addition to the plant occupying 10 acres of farmland, another five acres would be utilized for storage of biomass materials. The Clarendon facility would be the first of its kind in North Carolina, although other plants are also in the planning stages in Union, Nash, and Wilson counties.
The Clarendon plant would utilize wastes from the 18 000 hogs on the farm, as well as potentially from other hog farms in the county, and it would purchase row crops such as corn silage, wheat, oats and straw from other farms in the county for use in its green energy process. It might also purchase chicken manure from poultry farmers.
While the company has 160 plants worldwide and already operates a different sort of biogas plant in North Carolina, the facility in Columbus County would be the first of its kind in the state and Lee did not rule out the possible establishment of other such plants in Columbus County in the future.
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