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Capstone Turbine Corp. (CPST) Inks Supply Agreement with Barber-Nichols

Capstone Turbine Corp. (Nasdaq: CPST) leads the industry in the production of low-emission microturbine systems, and was the first company to market commercially viable microturbine energy products. The company is a member of the U.S. Environmental Protection Agency’s Combined Heat and Power Partnership, committed to improving measures the nation takes to reduce emissions and greenhouse gases.

Moving forward with this mission, Capstone today announced the signing of a supply agreement with Barber-Nichols Inc., in which Barber-Nichols will have the right to incorporate Capstone’s air bearing components for non-competing applications. Capstone will be Barber-Nichols’ exclusive supplier for air bearing technology, and though Barber-Nichols is not authorized to resell or provide maintenance on air bearings for Capstone, it is authorized to use the Capstone name and logo, and reference the supplier in advertising and promotional actions.

Barber-Nichols, a designer, engineer, manufacturer and tester of specialty turbo machinery products, said through its vice president that the agreement will deliver benefits to both its customers and line of products. “We have seen the benefits of air bearing technology demonstrated in Capstone microturbine equipment and believe the technology and experience can bring value to our products and customers,” Bob Linden noted in the press release.

Capstone’s microturbine power generators are low-maintenance, operating as a single rotating shaft supported by the company’s patented air bearing technology, which eliminates the need for maintenance items such as oil for lubrication. The air bearings also reduce wear and extend operating life.

“Capstone has made a significant investment in air bearing technology and this agreement allows us to better leverage our technology. The combined Barber-Nichols and Capstone ingredient branding strategy should improve brand recognition and market adoption of our products,” Darren Jamison, Capstone’s president and CEO, stated.

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