Capstone Green Energy Corporation (CGRN) has secured several new Energy-as-a-Service (EaaS) rental contracts, pushing its total of rented or under contract to 39 MW. The Company expects it will reach its 50 MW target by March 31, 2023.
These new contracts represent the continued expansion of the EaaS strategy and is indicative of ongoing customer demand. These most recent wins demonstrate the Company is on track with its vision to create economically attractive, smarter energy solutions and builds on its track record of enabling its customers to save $911 million in energy costs and approximately 1,503,100 tons of carbon emissions over the last four years.
“Capstone is seeing ongoing strong customer demand across multiple industries for its EaaS long-term rental services. The growth has been robust, with 7 MW under contract in March 2021 and 26 MW under contract in March 2022. Today EaaS agreements are approaching 40 MW,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “I am confident we will meet our strategic goal of 50 MW by March 31, 2023, as we continue to manage customer delivery dates and navigate the global supply chain,” added Mr. Jamison.
“The EaaS business is a critical cornerstone of our strategic plan as it provides higher margins, more constant and predictable revenue streams, and allows for a more streamlined staffing model than a traditional industrial manufacturing company. Additionally, this service is in high demand as it helps customers manage capital costs and meet their environmental impact targets,” stated Scott Robinson Capstone Green Energy Interim Chief Financial Officer.
“As part of this growth initiative, Capstone management has reduced operating costs and modified the operating model, while not losing sight of the goal of expanding its EaaS business. In order to meet demand and optimize capital, the Company has developed a “re-rent” strategy, enabling it to quickly accelerate the growth in EaaS rentals in a capital efficient manner. When we “re-rent” a unit it means we are taking an existing customer’s pre-owned microturbine unit that is not being utilized and deploying it into our growing EaaS customer base,” concluded Robinson.