Capstone Turbine Corp (NASDAQ:CPST), the maker of clean-energy microturbines, announced Monday it has secured an order for two microturbines for a facility that helps process natural gas in Iraq.
The company said the C600 Signature Series microturbines will provide 1.2 megawatts of energy to power a triethylene glycol dehydration facility -- which removes water from natural gas and natural-gas liquid -- in the Basra region of southern Iraq.
The order also includes Capstone’s new self-cleaning pulse filtration system, which will allow the microturbines to endure the remote and sandy conditions with minimal maintenance. The order was secured by Technical Solutions to Industry FZE, Capstone’s authorized distributor to Iraq and the United Arab Emirates, according to a statement.
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Capstone’s two microturbines will run on raw gas and will power 100% of the new dehydration facility, which is part of a larger 25-year joint venture between local gas and leading oil producer’s efforts to capture, treat and monetize associated gas currently being flared from three southern Iraq oilfields.
Capstone said it has recently developed a new line of self-cleanable severe environment air filtration systems for its Signature Series line of microturbines to facilitate its expansion into the oil and gas business in the Middle East as part of its revenue-growth strategy.
The company announced plans to expand its business into the Middle East a couple of years ago and has previously delivered projects in Oman, Qatar, Saudi Arabia and the UAE. Capstone expects that higher oil prices and the move towards reduced gas flaring will continue to drive demand and should provide a positive backdrop for Capstone’s low emission microturbines.
Gas flaring wasteful and bad for the enviroment
“Flaring is the traditional way to dispose of unwanted gas produced during oil exploration activities, but the long standing practice creates an immense amount of carbon dioxide emissions and adds to climate change,” said CEO Darren Jamison.
The Iraq announcement follows on the heels of another overseas order for Capstone’s microturbines, which will generate on-site power for a remote oilfield operation in India.
Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.
Capstone's stock recently traded up 0.48% to $0.84 a share.
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