James Crouse, chief revenue officer of Capstone Turbine Corporation (NASDAQ:CPST), supports the view that “strong tailwinds” are being created which support the renewable energy sectors, thanks to companies paying attention to environmental, social and governance principals.
In a review with alphaDIRECT Advisors conducted by its founding partner Shawn Severson, Crouse argued that the combination of a new corporate focus on ESG principals as well as environmental regulations will boost Capstone’s business.
“This plays very well into Capstone’s core product offerings, in our view, as they are able to effectively and economically supply power while reducing both NOx (oxides of nitrogen) gases and carbon dioxide,” Severson said.
Capstone, based in Van Nuys, California, offers a product line-up 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.
Based on its analysis, Capstone has a power base that has managed to pare back CO2 emissions by 350,000 tons in fiscal 2019 while creating savings of as much as $253 million for its customers.
Bullish on Capstone’s business, Severson thinks Capstone’s energy systems will see a boost in demand and support the Environmental Protection Agency’s Natural Gas STAR program which focuses on reducing methane emissions.
“It is also noteworthy that Capstone’s products can run on biogas or renewable natural gas, which we believe is a growing component in the market and can enable customers to generate power with essentially a net-zero cargo footprint,” concluded Mr Severson.