Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) ("Capstone" or the "Company"), a global leader in carbon reduction and on-site resilient green energy solutions, announced today that it has entered into four new long-term rental contracts with four new end-use customers in the hospitality and industrial grow house markets.
By offering customers Energy as a Service, Capstone Green Energy is strengthening its commitment to creating smarter energy for a cleaner future, as carbon reduction continues to have ever-increasing value to global customers.
The four contracts represent 3.2 MW of clean energy systems, and as a result, the Company plans to expand its current long-term rental fleet from today's 13.1 MW to 17.1 MW by December 31, 2021. Management has previously set a target to increase the new long-term rental fleet to 21.1 MW by the end of its current fiscal year, March 31, 2022.
"Capstone Green Energy continues to expand its Energy as a Service (EaaS) business, including its long-term rental program, which is an important element in achieving our near term profitability goals as rentals generate higher contribution margin rates than traditional product sales," said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. "With these four new long-term contracts, the Capstone microturbine rental fleet is expected to be expanded to 17.1 MW, which is well on our way to achieving our goal of expanding to 21.1 MW by March 31, 2022," concluded Mr. Jamison.