Capstone Green Energy Corporation (NASDAQ: CGRN) saw its shares step back early Wednesday, as the company says it continues to expand into the growing industrial grow house industry with a newly secured order for five C1000 Signature Series microturbines in upstate New York.
The units will be deployed in two phases, with the first two megawatts (MWs) being commissioned at the end of 2022 and the remaining three MWs commissioned in early 2023.
The project marks the largest single order for Capstone microturbines in the expanding industrial grow house industry and when finished, will become the third largest Capstone microturbine installation worldwide.
The project was secured by RSP Systems, Capstone's exclusive New York, Connecticut, and Ohio distributor, and E-Finity Distributed Generation, the exclusive distributor for the Mid-Atlantic, Southeastern United States, and the Caribbean will allow the facility to generate reliable and cost-effective power on-site independent of the utility grid.
In addition, Capstone's low-emission microturbine technology meets New York's strict greenhouse gas emissions requirements.
Industrial cultivation and processing are energy-intensive operations, and utilities have struggled to provide adequate and resilient power to support growth. This problem is compounded for facilities in remote areas where infrastructure is not in place to support energy demand for grow operations.
The five-megawatt microturbine solution will operate in stand-alone mode, allowing operators to avoid the vulnerabilities of a traditional electric grid by generating power on-site at the source.
CGRN shares docked six cents, or 1.5%, to $3.79.
