Capstone Turbine Corporation (CPST) announced the signing of a new Distributor agreement with Shanghai Tech-Steel Petroleum & Natural Gas Technology Development Co. Ltd. (“STS”) for the oil and gas sector in China. STS, founded in April 2007, is dedicated to the oil and gas industry including coal-bed methane and coal mine methane.
Jim Crouse, executive vice president, sales and marketing, stated, “STS has a proven track record in working with the major players in oil and gas in China including China National Petroleum Company, SINOPEC and China National Offshore Oil Company. STS has significant experience in the oil and gas sector in China and has developed numerous projects with Waukesha natural gas engines.”
The agreement was finalized with STS during the company’s visit to China for last week’s U.S. Clean-Energy Trade Mission. The U.S. Clean-Energy Trade Mission to China and India is being attended by eighteen U.S. companies led by Assistant Secretary of Commerce David Bohigian who recently visited Beijing, Guangzhou and Hong Kong to meet with potential Chinese partners, agents, distributors, licensees, and retailers in the clean energy sectors.
According to the Export Assistance Center of West Virginia, a branch of the U.S. Department of Commerce, China aims to double the country’s renewable energy supply by 2020. The Chinese Government would like to increase renewable energy to 10 percent of the country’s electricity consumption by 2020. In 2005 alone, China invested $7B in renewable energy capacity.
In addition, the Export Assistance Center indicates that India has set a goal of electrifying 18,000 remote villages and meeting 10 percent of its energy demand with clean energy by 2012. The Indian market for clean energy is estimated at $600M with an annual growth rate of 25 percent. The current 8,000 MW of installed capacity is expected to reach 20,000 MW by 2012.
“Clean energy investments in both China and India will be enormous over the next 10 years, so now is the time for Capstone Turbine to intensify its efforts into these developing markets,” said Darren Jamison, president and chief executive officer of Capstone Turbine Corporation.
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