Capstone Pens UK Distribution Agreement

Advantica Technologies to distribute CHP version of Capstone Microturbine in UK and Ireland.

Published: 26-Feb-2001

Capstone Turbine Corporation (www.microturbine.com; Nasdaq:CPST) today announced a formal distribution agreement for the United Kingdom and Ireland with Advantica Technologies Ltd. (www.advanticatech.com), formerly BG Technology Ltd.

As part of the agreement, Advantica has contracted to purchase 250 Capstone MicroTurbine(TM) power systems from Capstone over the course of two years.

With origins in British Gas, Advantica is an award-winning company with annual sales of (pound)80 million and customers in more than 30 countries. Advantica is part of the recently formed Lattice Group (www.lattice-group.com) of energy, telecommunications, property reclamation and related infrastructure businesses.

"Advantica is recognized worldwide for utilizing proven technology in commercially innovative ways, a good example of which is our Capstone powered MiniGen(TM) combined-heat-and-power-system (CHP)," commented Ian Stares, commercial manager at Advantica. "This agreement strengthens our relationship with Capstone and positions Advantica as Europe's leading microturbine based systems integrator."

MiniGen(TM) is built upon Capstone's low-emission microturbine technology that provides energy, cost and environmental benefits to both small and large users alike. This is a significant advantage, as it can be installed by a variety of businesses ranging from leisure centers, nurseries and hospitals, to supermarkets and hotels, all of which will be subject to the Climate Change Levy (CCL) -- the new energy tax that will be implemented by the UK government in April.

The CCL will affect UK businesses in industry, commerce, agriculture and the public sector. Borne from the 1997 Kyoto Protocol framework requirements to cut greenhouse gas emissions and halt global warming, the aim of the CCL is to deliver an expected saving of approximately five million tons of carbon by 2010, aligned to the UK government target to reduce harmful gas emissions by 12.5% by 2010.

"Companies that have already invested in energy saving CHP systems such as MiniGen will stand to make considerable savings when this new energy tax comes into force on April 1st," said Yan Evans, Advantica's MiniGen sales and marketing manager. "Payback on installing MiniGen units with ratings from 30 to 500 kilowatts is typically between three and five years. In addition, the overall efficiency of the CHP system is such that users will be eligible to claim Enhanced Capital Allowances when purchasing the unit," Evans said, referring to a UK government (pound)100 million incentive program for energy savings investments.

"Advantica's leadership and expertise in the field of distributed generation and reputation throughout Europe made it a pivotal application development partner for us when we first signed an agreement with them in 1999," said Dr. Ake Almgren, president and CEO of Capstone Turbine Corporation. "Advantica is now uniquely positioned to provide economic leverage for Capstone-powered CHP systems as well as other applications."

Combined heat and power systems boost overall thermal efficiency and reduce greenhouse gas emissions that have been linked to global warming. MiniGen CHP installations have exhibited an overall efficiency of greater than 75%.

One of Advantica's first such MiniGen CHP applications is in the large commercial greenhouse of a UK horticulturist in which the exhaust from the microturbine is utilized directly in the greenhouse. The exhaust heat and slightly elevated carbon dioxide levels stimulate plant growth (since the Capstone MicroTurbine uses no oil, lubricants or coolants, the exhaust is free of liquid residues). This application won the "Most Innovative Product Award" at the United Kingdom's premier horticultural event and was deemed "outstanding" by UK Agriculture Minister Nick Brown.

About Advantica

With origins in British Gas, Advantica (www.advanticatech.com) -- formerly BG Technology -- is a leading provider of technology and engineering services to customers in gas, pipelines and associated industries in more than 30 countries. The UK-based company is currently pushing into new markets, using the skills developed for the British gas industry to solve problems and deliver solutions in other nations. Advantica has annual sales of (pound)80 million and employs more than 800 people in the UK and North America.

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