The Market for Microturbine

Electrical
Power Generation

Product Code #F647

A Special Focused Market Segment Analysis by:

Industrial & Marine Turbine Forecast - Gas & Steam Turbines

Analysis 2
The Market for Microturbine
Electrical Power Generation
2009-2018
Table of Contents
Executive Summary .................................................................................................................................................2
Introduction................................................................................................................................................................3
Format and Methodology........................................................................................................................................4
Trends and Competitive Environment ................................................................................................................5
Manufacturers Review.............................................................................................................................................6
Market Statistics .....................................................................................................................................................12
Table 1 - The Market for Microturbine Electrical Power Generation
Unit Production by Headquarters/Company/Program 2009-2018 ..................................................13
Table 2 - The Market for Microturbine Electrical Power Generation
Value Statistics by Headquarters/Company/Program 2009-2018 ...................................................14
Figure 1 - Microturbine Electrical Power Generation
Unit Production 2009-2018 (Bar Graph) .................................................................................15
Figure 2 - Microturbine Electrical Power Generation
Value of Production 2009-2018 (Bar Graph)...........................................................................15
Table 3 - The Market for Microturbine Electrical Power Generation
Unit Production % Market Share by Headquarters/Company 2009-2018 ......................................16
Table 4 - The Market for Microturbine Electrical Power Generation
Value Statistics % Market Share by Headquarters/Company 2009-2018 .......................................16
Figure 3 - Microturbine Electrical Power Generation
Unit Production % Market Share by Headquarters 2009-2018 (Pie Chart) .............................17
Figure 4 - Microturbine Electrical Power Generation
Value of Production 2009-2018 (Pie Chart) ............................................................................17
Conclusion ...............................................................................................................................................................18

* * *

©2009 August 2009

Product Code F647 The Market for Microturbine Electrical Power Generation

PROGRAMS
The following reports are included in this section: (Note: a single report may cover several programs.)
Capstone MicroTurbines
Elliott Microturbines
Ingersoll-Rand Microturbines
Turbec Microturbines

©2009 August 2009

Product Code F647 The Market for Microturbine Electrical Power Generation

Introduction
Microturbines (very small gas turbine machines) are A key point in the promotion of microturbines is their
small combustion turbines approximately the size of a versatility. Their multifuel capability, reliability, and
household refrigerator; they currently have outputs of simplicity in design can be exploited in a number of
30 kW to about 250 kW. This type of power generation ways.
machine is not as new as some would believe, having
The machines are being considered for distributed
evolved from automotive and truck turbochargers,
generation baseload use. Electric utilities can expand
auxiliary power units (APUs) onboard aircraft, and
their ability to offer remote power, in small increments,
small jet engines.
without having to connect to their main grids.
Some industry followers of the small engine
Because their small size affords them such mobility,
marketplace have split the arena into two segments:
microturbines are ideal for providing remote temporary
"microturbines," machines whose power outputs are in
power. They can also be installed permanently at remote
the range between 30 and 250 kW; and "miniturbines,"
sites, providing prime (peak) power for a variety of
machines whose power outputs are above 250 kW. At
applications. They can also be run on low-quality gases
present, only Kawasaki (CGT302 at 300 kW) and
where available.
Niigata (RGT3R at 300 kW) have worked on machines
that have a power output of about 250 kW. These two Small gas turbines have been used for some time as
efforts are now in limbo. standby generators. Microturbines are efficient enough
to provide peak power as well as standby, particularly in
Gas turbine machines as a group can be classified by the
combined cycles.
physical arrangement of their component parts: single-
shaft (single-spool) or twin-shaft (twin-spool), simple- The costs of microturbine machines, relative to their
cycle or recuperated, inter-cooled, or reheat. These application and competing piston and diesel engines in
machines generally rotate at speeds in excess of 40,000 the same power class or higher, have long made them
rpm. As such, the selection of bearings, or whether the uneconomical. As their prices per kilowatt drop, they
machine's manufacturer selects oil or air, is a function of will find greater acceptance.
the machine's use. A single-shaft design is the more
common since it is less complex and less expensive to At present, a drawback of microturbines is the limited
build. A twin-shaft design is needed for mechanical number of times the machines can be cycled on and off.
Each startup and shutdown adds Equivalent Operating
load drive applications where an inverter is not needed
to change the frequency of the AC power. Hours (EOH) to the machine history, which leads to
more frequent maintenance requirements. As a result, it
Microturbines, which are Brayton-cycle machines, can is relatively normal practice to keep the machines
also be classified as simple-cycle or recuperated. running continuously once they are started. That
Recuperated units have a heat exchanger (normally drawback, however, is being addressed, and in the
made of sheet metal) that recovers (recuperates) some of future should not prove to be an obstacle to their
the heat from the machine's exhaust flow and transfers it increasing acceptance. On a 24/7, 365-day basis, the
into the entering air flow. The preheated air is then typical useful life of a currently commercially available
utilized in the combustion process. machine ranges from 40,000 to 80,000 hours, or up to
10 years with proper overhaul.
Having very low emissions and requiring low
maintenance, microturbines are well suited for small- Microturbines are viable for energy applications. They
scale cogeneration schemes. The machine's exhaust can are ideally suited to alternate fuels, CHP applications,
be used for hot water heating, absorption cooling, and and remote siting, and their costs, performance, and
dehumidifying. The extremely clean exhaust of many emissions are competitive in selected applications.
microturbines can be used directly in many industrial
processes. In some instances, the machine's CO2 Microturbines have significant expanded market
generation can be utilized in greenhouses. potential with technology advances:

Several manufacturers have very small machines with  Competitive efficiency at < 1 MW size
few parts and relatively good efficiency, largely due to  Potential for low first cost
the incorporation of small recuperators that boost
 Low emissions and broad fuel specification
combustion efficiency. Some adapt the recuperative
cycle further for waste heat recovery, which pushes  Class boundaries of 30 kW to 250 kW
system efficiency yet higher. Continued…

©2009
Industrial & Marine Turbine Forecast - Gas & Steam Turbines

Capstone MicroTurbines

Outlook Unit Production Forecast

2009-2018
 Packaging agreements with United Technologies and 700

FuelCell Energy, together with distributor agreements 600

that improve end-user satisfaction, bode well for 500

Capstone 400

300

 Capstone projected to be the leader in number of 200

microturbine machines to be manufactured in the 100

decade
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Units
 Fuel cells and competing technologies could begin to Units 526 570 585 594 603 588 534 446 534 524

erode the market for microturbines after 2014

Orientation
Description. The Capstone C30 and C65 Application. Electrical generation, including
MicroTurbine™ systems are compact, low-emission distributed generation, cogeneration (combined
electrical power generators. heat-power/chilling solutions), resource recovery
Sponsor. The C30 and C65 systems were privately (converting oilfield and biomass waste gases into
developed by the prime contractor. electricity), and onboard generation for hybrid electric
vehicles (HEVs).
Power Class. The approximate power outputs of the
Capstone MicroTurbine systems are 30 kW and 65 kW. Price Range. In 2009 U.S. dollars, the C30 is
estimated at $18,000-$19,500; the C65 is estimated to
For comparison, a Model C30 turbine can produce cost $39,000-$41,000.
enough electricity to power a small convenience store.
The C60 series products can produce enough heat to Competition. The Capstone MicroTurbine system, at
provide hot water to a 100-room hotel while also 30 kW, faces no serious competition. Capstone's C65
providing about one-third of its electrical requirements. faces competition from Ingersoll-Rand's 70L system,
which is rated at 70 kW.
Status. The 30-kW and 65-kW turbine-equipped
power generators are available.
Total Produced. At the start of 2009, at least 3,888
Capstone machines of all variants had been fabricated
and installed.

Contractors
Prime
Capstone Turbine Corp http://www.microturbines.com, 21211 Nordhoff St, Chatsworth, CA 91311 United States,
Tel: + 1 (818) 407-3770, Fax: + 1 (818) 734-5320, Email: [email protected],
Prime

Areche Ingenieros SA de CV Av. Gregorio Mendez, # 740, Centro, CP 86000, Villahermosa, Tabasco, Mexico,
Tel: + 52 993 312 3322, Fax: + 52 993 312 6969, Dealer/Distributor

©2009 July 2009

Page 2 Industrial & Marine Turbine Forecast - Gas & Steam Turbines

Capstone MicroTurbines

BPC Energy http://www.capstone.ru, Office 602, 35 Myasnitskaya St, Moscow, 101959 Russian
Federation, Tel: + 7 095 780 3165, Fax: + 7 095 780 3167, Email: [email protected],
Distributor

GTSA Engineering http://www.gtsa-engineering.com.au, 627-635 Bickley Rd, Maddington, Perth, 6109

Western Australia, Australia, Tel: + 61 8 9251 8009, Fax: + 61 8 9452 3598,
Email: [email protected], Distributor

Geveke Power Systems http://www.microturbine.nl, Ketelweg 20, Papendrecht, 3356 LE Netherlands,

Tel: + 31 78 6420 420, Fax: + 31 78 6517 122, Email: [email protected],
Distributor

Matune Power Systems Ltd http://www.matune.com, 39 Gloucester Rd, Wanchai, # 2507, 25/F, Harcourt House,
Hong Kong, Hong Kong, Tel: + 852 2140 6100, Fax: + 852 2179 5530,
Email: [email protected], Distributor

Meidensha Corp http://www.meidensha.co.jp, 36-2 Nihonbashi Hakozakicho Chuo-ku, Riverside Bldg,

Tokyo, 103-8015 Japan, Tel: + 81 3 5641 7229, Fax: + 81 3 5641 7249, Distributor

Soffimat http://www.soffimat.com, 22 Ave de la Grande Armee, Paris, 75017 France,

Tel: + 33 1 55 37 46 00, Fax: + 33 1 55 37 46 36, Email: [email protected],
Distributor

Sumitomo Corp http://www.sumitomo.co.jp, 1-8-11, Harumi, Chuo-ku, Tokyo, 104-8610 Japan,

Tel: + 81 3 5166 5000, Distributor

Takuma Co Ltd http://www.takuma.co.jp, 2-2-33 Kinrakuji-cho, Amagasaki-shi, Hyogo, 660-0806 Japan,

Tel: + 81 6 6483 2609, Fax: + 81 6 6483 2751, Distributor

Comprehensive information on Contractors can be found in Forecast International’s “International Contractors” series. For a detailed description,
go to www.forecastinternational.com (see Products & Samples/Governments & Industries) or call + 1 (203) 426-0800.

Contractors are invited to submit updated information to Editor, International Contractors, Forecast International, 22 Commerce Road, Newtown,
CT 06470, USA; [email protected]

Technical Data
The Capstone C30 and C65 MicroTurbine systems Combustor. A single, annular, reverse-flow combustor
incorporate a compressor, combustor, turbine, and is standard. It features a dry, lean premix combustion
permanent magnet generator. The rotating components system. Dual-fuel and lean-fuel burners are available.
are mounted on a single shaft supported by patented air
Turbine. A single-stage, radial-inflow turbine is
bearings that rotate up to 96,000 rpm (at full load
standard.
power). The generator is cooled by airflow into the gas
turbine, thereby eliminating the need for liquid cooling. Digital Power Controller. High-frequency power
System output is variable-frequency (50/60-Hz) 400 to produced by the rotating speed of the generator is
480V AC power. High-efficiency recuperated models converted to grid-quality 50 Hz/60 Hz by the digital
are also available. power controller.
Note: As used in this report, the microturbine arena Bearings. The patented air bearings operate free of
consists of gas turbine machines of up to 250 kW. contact with the shaft, eliminating the need for
lubrication and resulting in greater reliability and low
Design Features
maintenance requirements.
Compressor. A single-stage centrifugal-flow
compressor is standard. Optional Equipment. Optional equipment includes an
automatic dual-mode controller, a fuel gas compressor,
Recuperator. The recuperator features a metallic,
an emergency stop (E-Stop) options kit, an external
counter-flow prime-surface recuperator.
filter option kit, a multipac options kit, a remote modem
kit, a remote monitoring kit, a stand-alone option, and a
Unifin heat exchanger.

July 2009
Industrial & Marine Turbine Forecast - Gas & Steam Turbines Page 3

Capstone MicroTurbines

Dimensions. Approximate dimensions and weights (under ISO conditions):

C30 C30 C30 C30/ C65 C65-ICHP
High-Pressure Landfill or Model 330
Natural Gas or Digester Liquid HEV(a) Natural Natural
Gaseous Propane Biogas Fuels Multi Fuels Gas Gas
Length/Depth 1,516 mm 1,516 mm 1,516 mm 836 mm 1,956 mm 1,956 mm
Width 762 mm 762 mm 762 mm 572 mm 762 mm 762 mm
Height 1,943 mm 1,943 mm 1,943 mm 629 mm 2,108 mm 2,387 mm
Weight 405 kg 405 kg 405 kg 102 kg 758 kg(a) 1,000 kg(b)
1,121 kg(b) 1,346 kg(c)

(a) Engine assembly dimension only (does not include digital power controller).
(b) Grid connect weight.
(c) Dual mode weight.

Approximate dimensions and weights (under ISO conditions):

Stainless Steel Enclosed NEC Class 1, Division 2,
Models for Groups C & D
Non-Hazardous Areas Type X for NFPA 496
C30 C65 C30 C65
Length/Depth 2,159 mm 2,540 mm 2,717 mm 3,175 mm
Width 889 mm 889 mm 889 mm 889 mm
Height 2,235 mm 2,362 mm 2,235 mm 2,362 mm
Weight 1,043 kg 15,87 kg 1,134 kg 1,678 kg

Performance
C30 C30 C65
Non-Liquid Fuels(a) Liquid Fuels Natural Gas
Power 30 kW net (+ 0/-2) 29 kW net (± 1) 65 kW net
Efficiency (LHV) 26% (± 2) 25% (± 2) 29%
Heat Rate (LHV) 13,800 kJ/kWh 14,400 kJ/kWh 12,450 kJ/kWh
NOx Emissions (@ 15% O 2 ) < 9 ppmv < 35 ppmv < 5 ppmv
Fuel (natural gas-HHV) 457,000 kJ/hr 459,000 kJ/hr 888,394 kJ/hr
Mass Flow 0.31 kg/sec 0.31 kg/sec 0.49 kg/sec
Exhaust Gas Temperature 275°C 275°C 309°C
Exhaust Energy 327,000 kJ/hr 327,000 kJ/hr 591,911 kJ/hr
Typical Sound Level 65 dBA @ 10 m 65 dBA @ 10 m 70 dBA @ 10 m

(a) Non-liquid fuels = natural gas, gaseous propane, landfill gas, digester biogas, and wellhead/flare gas.
The 65-kW Capstone C65-ICHP (Integrated Combined Heat and Power) system has the following performance
parameters (ISO; fuel is natural gas):
Net Power Output 65 kW
Net Electrical Efficiency 29% LHV
Heat Rate (LHV) 12,900 kJ/kWh
Emissions (@ 15% O 2 ) < 9 ppmv NOx; <130 ppmv CO
Exhaust Mass Flow Rate 0.49 kg/sec
Exhaust Temperature 309°C
Exhaust Energy Output 591,911 kJ/kWh

©2009 July 2009

Page 4 Industrial & Marine Turbine Forecast - Gas & Steam Turbines

Capstone MicroTurbines

Variants/Upgrades
Capstone's MicroTurbine systems product offerings Capstone has also fabricated at least four C200 units, at
include a 30-kW C30 model and a 65-kW C65 model. about 200 kW, for testing and proof-of-concept. The
Capstone also offers a Model 330, at 30 kW (which has model has not yet been released for production.
been offered for truck and bus onboard power
generation). The Model 330 has been referred to as the
C30 HEV MicroTurbine.

Program Review
Background. The Capstone C30 and C65 air to about 1,110°F (600°C) before it enters the
MicroTurbine systems are adaptable, low-emissions combustion chamber, reducing fuel consumption by
electrical generation systems. In each system, a gas more than 50 percent. The combustion chamber then
turbine-driven high-speed generator is coupled with mixes the heated air with fuel and burns it. This
power electronics that allow the system to operate mixture expands through the turbine, which drives the
connected either to the grid or in stand-alone modes. compressor and generator at up to 96,000 rpm. Since
The MicroTurbine operates on multiple fuel sources; the generator is mounted on the same shaft as the
currently, the unit runs on high- or low-pressure natural turbine, it rotates at the same speed. The exhaust gas is
gas. Capstone has refined the machine to enable it to then routed through the recuperator before being
burn diesel, kerosene, propane, and low-grade waste discharged at the exhaust outlet.
gases from landfills, oilfields, sewage treatment plants,
The high-speed generator delivers power at up to
and agricultural digesters.
1,600 Hz. The power controller converts the power to
In addition to producing electricity, the MicroTurbine useful 50/60 Hz at 400-480V AC. Additional output
produces usable exhaust heat. The oxygen-rich exhaust options (including 0-400V DC) are under development.
can be used directly without any "cleaning," owing to
Capstone 65 Power System. In September 2000,
the very low levels of NOx (less than 9 ppmv for the
Capstone introduced its first commercial 60-kW C60
Model 65), CO, and THC.
microturbine power system. The 60-kW C60 unit was
The patented air bearings of these systems eliminate the also referred to by the manufacturer as the Capstone 60
need for oil or other lubricants, and the air-cooled (or Model 60). The C60 designation has been
design of the entire system (engine and controller) superseded in favor of the C65 designation, reflecting
eliminates the need for water, antifreeze, and water the increase in power output to 65 kW.
pumps. There are no gears, belts, or engine-driven
The Capstone C65 model is an addition to
accessories; there is only one moving part in the engine,
Capstone's C30 model. It develops twice the amount of
and advanced combustion control eliminates the need
electricity, but does so with the same unique
for ceramics or other exotic materials, or catalytic
characteristics of the company's C30 model: only one
combustion.
moving assembly, no oil or other liquid lubricants, no
The Capstone MicroTurbine subassemblies include a liquid coolants, and NOx emissions of 9 ppmv, even
turbogenerator, a fuel system, and a digital power though it is not equipped with post-combustion
controller. All are enclosed in a weather-resistant pollution controls.
package. To support integration with other distributed
This first natural gas-powered system produced was
generation devices, the Capstone MicroTurbine
shipped to one of Capstone's Midwest distributors,
communicates through an "open architecture,"
Interstate Power Systems, headquartered in
supporting the concept of a virtual power plant.
Minneapolis, Minnesota. The unit was shipped for
The Capstone MicroTurbine generates electricity by installation at a propane and liquefied natural gas
drawing air in through the generator cooling fins before storage facility of Reliant Energy Minnegasco, where it
it flows to the compressor inlet. This cools the machine is used as a supplement and backup to the local utility
and eliminates the need for any liquid cooling. Air from grid.
the generator then flows into the compressor, where it is
The exhaust heat of the Capstone C65 unit is ported
pressurized and forced into the cold side of the
through an absorption chiller that can deliver
recuperator. Here, exhaust heat is used to preheat the
refrigerated air, which is also used for cooling. Reliant

July 2009
Industrial & Marine Turbine Forecast - Gas & Steam Turbines Page 5

Capstone MicroTurbines

Energy Minnegasco was already equipped with one of Since March 31, 2004, Capstone has terminated, or
Capstone's 30-kW Model 330 systems to provide served notice of termination or non-renewal on, many of
load-following and standby energy to the facility's its distributors worldwide. Despite that significant
control center. The exhaust from the current system change, about 55 percent of its product revenues in the
passes through a Unifin heat exchanger for space third quarter of FY05, and 75 percent year-to-date, were
heating at the facility. generated by its distributors. The company expects to
access direct sales opportunities in the market both
The refrigerator-sized Capstone C65 has about the same
through its own sales force and through sales
height and width as Capstone's continuing line of
representative relationships. It is also in the process of
30-kW models.
negotiating with several potential new distributors and
New C200 Unit. In April 2004, Capstone Turbine dealers in key focused markets and has already signed
shipped the first beta unit C200 to the University of new dealer agreements.
California, Irvine. It was fully installed in May 2004.
The C65: A Nice Improvement
The 200-kW natural gas-fueled power system has many
of the unique features of Capstone's 30-kW and 60-kW On December 6, 2005, Capstone announced at the
products: a single moving part, no lubricants or other Power-Gen International trade show that it would begin
hazardous fluids, and extremely low emissions even shipping an enhanced line of 65-kW microturbine
though it is not equipped with any exhaust cleanup models that would replace its popular C60 series of
devices or chemicals. power and heat generators.

Since 2000, Capstone has been working with the U.S. "Reflective of our commitment to continuously improve
Department of Energy on the C200 under a Cooperative our product performance, I'm very pleased to announce
Agreement on the "Advanced Microturbine System" that effective January 2006, the Capstone C60
and has received from the DoE a portion of the MicroTurbine will be replaced by the C65, with an
development costs. Four beta units are being tested and installed output of 65 kW, a 29 percent electrical
are reported to be performing well. The commercial efficiency, and NOx emissions of less than 5 ppmv,"
launch of the C200 product is dependent upon the said Capstone CEO John R. Tucker. "This approximate
successful completion of beta and qualification testing 8.5 percent increase in electrical output, 4 percent
and market demand. increase in efficiency, and 45 percent reduction in NOx
output is reflective of our continuing engineering effort
Sales and Distribution Channel. Capstone's to provide our customers with the best distributed
previous sales strategy of selling large volumes of generation product available."
product through distributors did not meet its
expectations, and some distributors refocused their The new natural gas-fueled C65 and C65-ICHP (with
efforts on opportunities other than microturbines. As a factory-integrated heat recovery) are intended to deliver
result, several end-users began working directly with higher electrical and thermal output without any change
Capstone. to the product's weight and dimensions, allowing
flexibility in indoor, outdoor, and rooftop siting.
Capstone's strategic plan calls for building a direct sales
channel for select vertical markets to augment sales Capstone also stated that it would introduce a variation
channel efforts in the Americas. The company expects of the 65-kW machine that uses waste flare gases from
that its distributors will continue to provide a majority landfills or sewage treatment plants as fuel to create
of its business. It is continuing to develop and renewable energy. The new CR65 – the "R" for
strengthen key distributors while moving other renewable – would be available with an optional
distributors into dealer or manufacturer stainless-steel integrated heat exchanger.
representative-type arrangements. These efforts have Affiliates. In addition to the firms in the Contractors
required the termination of some existing agreements to section above, the following firms are or have been
the extent permitted by the applicable contracts, and the affiliated with Capstone on its MicroTurbine systems:
launch of new agreements. Additionally, the company
 Active Power Corporation; Tokyo, Japan
has been adding new distributors and representatives
that are experienced in its target markets. The company  Aquatec-Maxcon; Leichhardt, QLD, Australia
believes that this combined approach can leverage the  CE Energy; Bangkok, Thailand
best of what its distributors and Capstone have to bring  Cyclect; Singapore, Republic of Singapore
to their customers and that it will make it more
 Fores Engineering SrL; Forli (FC), Italy
responsive to its customers' needs.

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Page 6 Industrial & Marine Turbine Forecast - Gas & Steam Turbines

Capstone MicroTurbines

 General Systems Design (GSD); Maltepe, Istanbul,  Samsung Corporation; Seoul, Korea (ROK)
Turkey  Totalsupport Ltd; Rumuogba, Nigeria
 Integrated Building Technologies; Villorba,  Verdesis; Wavre, Belgium
Treviso, Italy
 WESCO Distribution Inc; Pittsburgh, Pa., USA

Related News
Capstone MicroTurbine Fleet Surpasses 15 Million Operating Hours – President and Chief Executive
Officer Darren R. Jamison recently confirmed that the installed fleet of the company's Capstone MicroTurbine
energy systems has surpassed the 15-million-hour mark in documented runtime operation.
The company recently shipped its 4,000th unit and also has achieved significant mean time between failures
(MTBF) reliability criteria, as follows: MTBF of greater than 8,000 hours for the C60 series, and MTBF of greater
than 15,000 hours for the C30.
Fifteen million hours is equivalent to approximately 1,710 years worth of continuous operation. Each Capstone
MicroTurbine system has integrated power electronics that maintain a log of runtime hours and operational
performance data. "The 15-million-hour figure represents the total documented operation of installed units with
which we have contact or dial-in permission," said Shelby Ahmann, Capstone's senior vice president of customer
service. (Capstone, 5/07)

Funding
No U.S. government funding for the Capstone C30 or the C60 MicroTurbine systems has been identified.
It should be noted here that the U.S. Department of Energy, through its Office of Fossil Energy, has funded testing
of the high-energy Direct FuelCell/Turbine power plant. That effort involves FuelCell Energy Inc (Danbury,
Connecticut) and Capstone Turbine Corporation.

Contracts/Orders & Options

Note that no major military contracts for the Capstone C30 and the C60/C65 MicroTurbine systems have been
identified. Recent non-military contracts include the following:
Award
Contractor ($ millions) Date/Description
Capstone Turbine N/A Jan 2007  A follow-on order from Capstone's distributor in Russia (Banking
Corp Production Center) amounting to approximately $1.6 million in C65
MicroTurbine systems.

Capstone Turbine N/A Aug 2005  Order for more than 1.5 MW of propane-fueled microturbine
Corp systems from Areche Ingenieros SA de CV in Mexico, for installation in three
government buildings in Mexico City.

Capstone Turbine N/A Jul 2005  Follow-on order from BPC Energy in the Russian Federation for a
Corp total of 1.7 MW of 30-kW and 60-kW microturbine products for installation at
four sites, including a shopping center and a telecommunications facility.

Capstone Turbine N/A May 2005  Follow-on order from Soffimat in France for 2.8 MW of its 30-kW
Corp biogas-fueled microturbine products, for use at four landfills in France.

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Industrial & Marine Turbine Forecast - Gas & Steam Turbines Page 7

Capstone MicroTurbines

Award
Contractor ($ millions) Date/Description
Capstone Turbine N/A Apr 2005  Order from BPC Energy in the Russian Federation for 2.3 MW of
Corp 60-kW microturbine products to provide heat and power (0.5 MW) at a hotel in
Moscow, and to generate power and heat (1.8 MW) at a ski resort near
St. Petersburg.

Timetable
Month Year Major Development
Jan 1998 MicroTurbine unit installed at Battle River, Alberta, Canada, for testing
May 1998 Capstone MicroTurbine completes solution gas field tests
Dec 1998 Capstone MicroTurbine becomes commercially available
Jan 1999 Capstone and Williams Distributed Power Services sign agreement
Nov 1999 Capstone unveils its innovative SimpleCycle microturbine generator
Jan 2000 Mariah Energy Corporation and Capstone sign agreement
Feb 2000 Meidensha, Sumitomo become distributors/packagers; both make equity investments in
Capstone Turbine Corporation
1Q 2000 Capstone's innovative SimpleCycle microturbine generator becomes commercially available
Apr 2000 Mitsubishi Corporation becomes distributor in Japan
Sep 2000 60-kW microturbine unveiled
Nov 2000 Capstone ships 1,000th production-standard microturbine
Dec 2000 ECO announces relationship with Capstone for 30-kW systems
Feb 2001 Advantica becomes distributor, places order for 250 microturbines;
Capstone certified to ISO 9001 by UL
Mar 2001 Conuar, part of the Perez Company's Pecom Energia, becomes distributor
Totalsupport Ltd becomes distributor in Nigeria; first shipments to African continent
EnSource becomes distributor in Western Saskatchewan, Alberta, and Northeastern British
Columbia
LADWP orders 141 Capstone machines
Apr 2001 Meidensha, Sumitomo order 100 additional microturbines
Cummins and Capstone announce agreement for Cummins to be major distributor
SCAQMD announces intent to buy 30-kW and 60-kW units
Takuma of Japan orders 250 microturbines
Jun 2001 Capstone completes its first stand-alone 60-kW microturbine power system
Electrical efficiency of 60-kW machine raised from 26% ±2 to 28% ±2
3Q 2001 Takuma makes TCP-30AR available
Nov 2001 UL certifies 60-kW microturbine to 2200 Generator and 1741 Utility Interconnect standards
Mar 2002 Capstone turbines begin operation at St. Vincent Hospital in Santa Fe, New Mexico
Apr 2002 FuelCell Energy receives U.S. patent for its combined-cycle Direct FuelCell/Turbine power
plant
Aug 2002 Samsung of Korea signs distribution agreement with Capstone for South Korea
Testing begins of a C60 powered by propane fuel
Oct 2002 UTC Corp signs agreement with Capstone, takes a 4.9 percent stake in Capstone
Apr 2003 Greenvironment Oy becomes Finland's Capstone MicroTurbine distributor
Oct 2003 U.S. EPA verifies the performance of the C60 CHP system
Apr 2004 Capstone ships the first 200-kW MicroTurbine to University of California at Irvine
2005 Capstone announces sale and shipment of 3,000th MicroTurbine system
Apr 2005 Capstone gets order from its Russian distributor for 2.3 MW of 60-kW products
Jan 2006 C65 replaces C60 in Capstone's portfolio
Capstone-branded products receive U.S. GSA approval
Mar 2006 UL certifies Capstone MicroTurbines for renewable energy generation and national grid
interconnection
Nov 2006 Capstone Turbine announces Service Agreement with ITS/PEMEX
Thru 2018 Continued production of C30 and C65 MicroTurbine systems; continued aftermarket support of
C60

©2009 July 2009

Page 8 Industrial & Marine Turbine Forecast - Gas & Steam Turbines

Capstone MicroTurbines

Worldwide Distribution/Inventories
At the start of 2009, almost 4,800 Capstone C30 and C60/C65 MicroTurbine systems had been installed. The
majority of the units are operating in Argentina, Canada, China, Ireland, Japan, New Zealand, Nigeria, the
U.K., and the U.S. (The countries listed include those operating hybrid electric buses.)

Forecast Rationale
In the microturbine arena, Capstone Turbine production of its 30-kW and 65-kW systems is projected
Corporation has had many "firsts," and its list of C30, to account for just over 60 percent of all microturbine
C60, C65, and C200 machine distributors is indeed systems.
impressive, as are the quantities that Capstone's
The rebound in the overall power generation arena
distributors worldwide have purchased or pledged to
worldwide means that Capstone should continue to sign
purchase.
dealers and distributors. With the increasing number of
In today's microturbine marketplace, there are no fuel types that the Capstone line can burn – including
comparably sized commercial machines that can match propane and landfill/digester biogas – the machines
the near-zero emissions performance of the should become even more appealing.
Capstone 30-kW or 65-kW models. The near-zero
Without question, with the microturbines commercially
emissions capabilities have attracted considerable
available, Capstone's products continue to dominate
attention worldwide, as these small turbines are used in
market sales and activity – and we believe this situation
hybrid electric (gas turbine/battery-powered) buses in
will last through 2016. Fuel cell production totals
China, Italy, New Zealand, and the U.S.
should not seriously begin to affect microturbine
The microturbine marketplace had been growing production totals before 2014.
dramatically for several years to about 2001, and then
Capstone's largest machine, the C200, fills the gap in
tapered off for a few years as customers and financial
the microturbine arena between the 105-kW Turbec AB
firms reassessed their needs – that pattern paralleling the
machine and the 300-kW machines from Kawasaki and
overall electrical generation market.
Niigata (with the Kawasaki and Niigat a machines not
Based on our findings, we believe that total machine likely to attain production status in the near term).
production in the decade will be weak compared to
With Kawasaki and Niigata deemed to be "out of the
earlier years. At present, some potential customers
race" for the foreseeable future, the microturbine arena
appear to be taking a wait-and-see approach to
is now occupied by Capstone, Ingersoll-Rand, and
microturbines, but that hesitancy will quickly fade as
Elliott. Turbec may become a more serious participant
the need for electrical generation becomes more acute.
sometime in the future when its business organization
We project that Capstone Turbine will, in the decade and marketing issues have been laid to rest.
extending through 2018, build 5,504 MicroTurbines –
Owing to the non-production status of the C200, we are
including units for electrical generation (including CHP
refraining from issuing a forecast for that model at this
installations) and for use in hybrid electric duty. The
time.

July 2009
Industrial & Marine Turbine Forecast Page 9

Capstone MicroTurbines

Ten-Year Outlook

ESTIMATED CALENDAR YEAR UNIT PRODUCTION

Designation or Program High Confidence Good Confidence Speculative

Thru 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total

Capstone Turbine Corp

C30 <> MW < 0.2 <> Industrial Power Generation
4,065 412 447 450 450 480 450 385 327 420 410 4,231

C65 <> MW < 0.2 <> Industrial Power Generation

725 114 123 135 144 123 138 149 119 114 114 1,273
Subtotal 4,790 526 570 585 594 603 588 534 446 534 524 5,504

Total 4,790 526 570 585 594 603 588 534 446 534 524 5,504

©
20 09 July 2009
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