Samsung Corporation has placed an order for 1.5 megawatts of microturbines with Capstone Turbine Corporation (Nasdaq:CPST), the world’s leading manufacturer of microturbine energy systems, valued at more than $1 million. Samsung is the Korean distributor of Capstone MicroTurbine(TM) combined heat and power systems, and will install four C60 models at their headquarters, 11 at a hospital and 10 at a high-rise apartment complex. Two Capstone C30 units will be deployed in a biogas application project.
In addition to its consumer electronics and other business activities, Samsung is engaged in energy services management for commercial and industrial customers throughout South Korea. A division of the company has embarked upon a growth plan that incorporates the Capstone MicroTurbine as a core product, and its Samsung Construction segment plans to adopt Capstone MicroTurbines in future apartment projects.
Industrial sector energy consumption in South Korea quadrupled in the last two decades, and total electricity consumption is projected to double again by 2020, according to the US Energy Information Administration. The South Korean government has enacted a Comprehensive Plan for Environmental Improvement to reduce pollutants and greenhouse gas emissions. The national power company, KEPCO, is undergoing restructuring and privatization.
These conditions are expected to provide a good platform for Samsung to succeed in developing its business for microturbines.
“We believe that these combined circumstances are favorable for distributed generation technologies,” S. M. Lee, Managing Director of the Machinery & Electronics Division of Samsung Corporation, said during a previous visit to the Los Angeles area facilities of Capstone Turbine. “The very low nitrogen oxide emissions and very high combined-heat-and-power fuel efficiency of Capstone MicroTurbines would prove advantageous to these market conditions. Capstone systems offer many other exclusive attributes that can further enhance market acceptance.”
Samsung contracted to be a Capstone MicroTurbine system distributor more than two years ago, and has been successfully running test projects of Capstone systems at two of its facilities, at KEPCO, and at the national natural gas utility KOGAS. In particular, the biogas-fueled installation noted above will be a joint project of Samsung, KEPCO and Korea Midland Power Company (KOMIPO, which was established in the restructuring of KEPCO).
“This order represents the first commercial introduction of Capstone MicroTurbines in Korea,” said Capstone CEO John Tucker at the signing ceremony held at Samsung’s corporate headquarters.
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