Capstone Turbine client in Colombia takes on 10-year Factory Protection Plan

Capstone Turbine Corporation (NASDAQ:CPST) announced Monday that a client in Colombia has agreed to a 10-year Factory Protection Plan. 

The long-term service contract sold by Supernova, Capstone’s exclusive distributor for Colombia and Venezuela, covers 1 megawatt of its clean-energy microturbines.

In addition, the company said in a statement that its fleet of microturbines has exceeded 1 million successful hours of operation in Colombia.

READ: Capstone Turbine signs Factory Protection Plan with Brooklyn hospital using its signature microturbines

There are currently 8.2 MWs of Capstone microturbines installed and successfully operating in various applications throughout Colombia, with another 5.2 MWs moving through the installation and commissioning process, the company said. 

According to Supernova’s records, the Capstone microturbines achieved 1 million-operating-hours milestone with an impressive system availability of about 98.5%.

“Since becoming Capstone’s distributor in Colombia, Supernova continues to effectively convert customers over to our comprehensive FPP program,” said Jeff Foster, Capstone’s senior vice president of customer service and product development.

“The continued growth of our FPP service contract business helps to build up our recurring aftermarket service revenue, which continues to set records and is key to our near-term profitability plans.”

FFP protects against future cost hikes

The Capstone FPP enables customers to have predictable and stable maintenance costs for up to 20 years and protects customers from future cost increases associated with changes in replacement spare-parts pricing, commodity-price increases, import tariffs and interest-rate changes.

“Supernova has done an excellent job opening up and growing the Colombian market for Capstone,” said Jim Crouse, Capstone’s executive vice president of sales and marketing. 

“Performance like this further shows the value that Capstone can provide and supports further growth in this market and other parts of Latin America moving forward.”

Capstone, based in Van Nuys, California, offers a product line-up of microturbines that can produce anywhere from 30 kilowatts to 10 MWs of power, operating on a variety of gaseous or liquid fuels. To date, the company has shipped over 9,000 units to 73 countries.

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Story by ProactiveInvestors