Air Pollution Control Equipment Services, Hydroelectric

Harza orders 250 Capstone units

CHICAGO, Sept.18, 2000 — Harza Engineering Co. Inc., Chicago, and Capstone Turbine Corp. reported a 3-year agreement under which Harza will order 250 Capstone MicroTurbine power systems, Capstone reported Monday, its second major deal in 2 months. Terms of the deal were not disclosed.

The order is part of a new strategic alliance with Capstone in which Harza will serve as a provider of Capstone MicroTurbine power systems throughout the US and Canada for use in a variety of distributed generation and resource recovery projects, the companies reported..

Harza said it has created a new energy services company, Harza Energy LLC, that will focus on power systems and distributed generation. A multinational engineering company, Harza specializes in hydropower plant design and construction, wastewater management, solid waste remediation, and other areas of resource recovery.

In June, Capstone reported a 30 kw unit completed 1,300 hours of operations on landfill gas at Puente Hills, Calif., the world’s second largest landfill. The Los Angeles County Sanitation Districts has been evaluating the unit’s performance for use at remote sites.

Earlier, Cinergy Corp., Cincinatti, ordered 52 units as part of a distribution agreement with Capstone. Cinergy said its immediate plans were to deploy the units for customers that have an immediate need for small capacity additions, high-power quality, and high reliability. Over time, Cinergy said the units will help reduce peak-demand strain on the electric grid.

This summer the New York State Department of Public Service approved the Capstone MicroTurbine as the first 3-phase distributed generation (DG) device permitted to operate in parallel with utilities in the state as part of the state’s new DG standard.

The ruling eliminates the need for Capstone to conduct costly, repetitive, and time-consuming verification tests from each of the states’ utility companies. Businesses will be able to generate their own power onsite, reducing energy costs, eliminating outage and power fluctuation problems, and easing demands on the grid during peak hours, Capstone said.

“The real task with distributed generation is to come up with common sense rules that allow technology such as the Capstone MicroTurbine to be easily deployed in the marketplace,” said Sarah McKinley, executive director, Distributed Power Coalition of America. “It’s not the technology that is costly; it’s the implementation costs, such as negotiating and testing with utilities.” The New York standard represents a significant step towards minimizing these costs.

The fuel-flexible units have a single moving assembly, use no oil or coolants, and have nitrogen oxide emissions below 9 ppm. Models designed to use low-grade waste gases-otherwise vented or flared into the atmosphere-have application as a renewable fuel source to generate onsite electricity, Capstone officials said.