Capstone Green Energy Corp (fka CGRNQ)

[Seasound]

"This site is vastly larger than the Syracuse data Center." It wasn't my intention to debate the size of the data centers, my posting was to illustrate the potential market for Capstone.

Currently medium speed DG (Diesel Generator) sets dominate both the stationary power supply market, (whether it be data centers, emergency back-up power, hospitals, mining, etc.) and the mobile market, i.e. locomotives and standby power in marine applications. The upper end of these applications is 3mw (can you say 3 C1000s?)

With NatGas currently trading at $2.20 per mmBtu at Henry Hub there is a great incentive to move to natural gas as a fuel source due the fuel price spread alone (pundits are now talking about $1.85.) Diesel fuel requires treatment with biocides which in turn presents its own problems, as those dead bacteria have to be filtered. On the other hand natural gas arrives at the end user site perfectly clean, cheap and abundant.

Another issue with diesel generators is compliance with EPA emission standards, which are only going to get stricter. The US Clean Air Act requires that new source performance standards (NSPS) be established to control emissions from new stationary sources [CAA, Section 111(b)]. One caveat of this is the use of natural gas for use in diesel propulsion is rapidly gaining traction. That being said the Capstone solution having one moving part, no lubricates, filters, etc. is still a winner in my opinion.

Again, as to sizing of gen-sets it is a simple issue of synchronizing, i.e., install as many as required to achieve the desired output in synchronous operation. I haven't a clue as to the amount of power required to power 25,000 households btw.

"The article doesn't state the size of the diesel turbine" I presume this is a nomenclature typo, as I know of no diesel turbines, and assume you are referring to gas turbines which use diesel as a fuel source. This is a whole different animal. Gas turbines of course have many applications including stationary power plants. Unless they are configured in a combined cycle set-up they are only 35-40% efficient. In a combined cycle they can obtain 60% efficiency, but these babies are expensive. Need 400mw? Call GE and have them build you a turbine.

All of the above being said I think the roll out of the C1000s is the key to Capstone's profitability.