Importance of Natural Gas Powered Microturbines in Capstone Pipeline Project

Microturbines are little burning turbines that consist almost a refrigerator’s size with outcome of 25 Kilowatt to 500 Kilowatt. They’re developed from truck and automotive turbochargers, small jet engines and airplanes auxiliary power units and consist of a combustor, alternator, generator, compressor, turbine and recuperator. For small-time generation of power, in comparison to other technologies, microturbines offers many potential advantages. These advantages consist of a small number of compact size, greater efficiency, less electricity costs, moving parts, chances to utilize waste fuels, light-weight and lower emissions. For the production of power, they’ve the potential to be placed on positions with space restrictions. To attain effectiveness greater than 80%, recovery of waste heat can be utilized with these systems.

Microturbines can be categorized into recuperated or simple cycle. Recuperated units utilize a heat exchanger of sheet-metal which can recover exhaust stream’s heat & transmit to the entering air stream. After which the preheated air is utilized in the burning process. When the air is preheated, a smaller amount of fuel is required to increase its temperature to the necessary level at the turbine inlet. Furthermore, due to preheating, the recuperated units can produce 30-40% fuel savings and also have a higher thermal to electric ratio than unrecuperated units. In unrecuperated or simple cycle, compressed air, turbine is mixed with fuel and is later burned under conditions of constant pressure. The hot gas that comes as an outcome is then allowed to inflate through a turbine to carry out work. Compared to recuperated units, simple cycle microturbines have additional heat existing for cogeneration applications, higher reliability as well as lower cost.

Innovative materials like thermal barrier coatings and ceramics, are some of the important empowering technologies to develop microturbines further. Effectiveness can be attained with materials such as ceramics, which leads to a substantial increase in engine operating temperature. For being equipped with automatic electronic control, and being compact in size, microturbines are procuring significant share in the distributed generation market. Low capital expenditure and relatively low maintenance and operational costs of microturbines are further propelling their significance in energy distribution markets. An ongoing Future Market Insights’ study projects that such factors will drive the growth of the global microturbines market in the foreseeable future.

Capstone Announces the Confirmation of Shale Gas Order

Capstone Turbine Corporation is the world’s foremost clean technology manufacturer of the energy systems of microturbine. Since 1994, Capstone has been providing project controls services, construction management and project management on a large scale.

E-Finity Distributed Generation earlier protected the order of shale gas and now has confirmed the delivery of the entire 5.2 MW in the third quarter of Capstone. E-Finity is Capstone’s special distributor for the southeastern US and mid-Atlantic. The order is consists of four C800 and two C1000 Signature Series microturbines which adds up to 5.2 MW of reliable and clean power. The natural gas powered microturbines will provide power along with an advanced US shale gas pipeline which is currently under construction. The confirmation of the order provides Capstone an opportunity to increase the rates of the product production during the forthcoming two quarters. This eventually fuels the chances for the growth of revenue which is essential to support Adjusted EBITDA breakeven model.

Good Run-Way – Adjusted EBITDA Breakeven

Recently, Capstone declared the successful completion of its multi-point strategic plan which thereby led to reduced facility expense and immediate development in operational efficiency. The confirmed shipment and the noteworthy progress of the plan has aided in reaching the goal of Adjusted EBITDA breakeven.

Adjusted EBITDA is well-defined as warrant valuation change, stock-based reimbursement expense, amortization and depreciation expense, facility for income taxes and net income before interest. Adjusted EBITDA is not an alternative to net income, any other performance measure resulting in agreement with GAAP, cash flows from operating activities as a measure of its liquidity and also is not a measure of financial performance under GAAP.

To sum up, the Capstone management team is very much concentrated on achieving the goal of Adjusted EBITDA breakeven by executing the plan. The management is expecting the approaching 31 December & 31 March end quarters as chances for hitting the innovation.

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Nikhil Kaitwade

With over 8 years of experience in market research and consulting industry, Nikhil has worked on more than 250 research assignments pertaining to chemicals, materials and energy sector. He has worked directly with about 35 reputed companies as lead consultant for plant expansion, product positioning, capacity factor analysis, new market/segment exploration, export market opportunity evaluation and sourcing strategies.