Coal, Gas

Capstone/Harza Deal with California Water Agencies Sets Record

Issue 4 and Volume 105.

A contract between Chicago, Ill.-based Harza Energy LLC and Capstone Turbine Corp. could result in the sale and installation of twice as many microturbines as the Chatsworth, Ca.-based microturbine manufacturer has sold to date. Under the agreement, the Association of California Water Agencies, comprised of 440 members who supply water to 90 percent of California’s farms and cities, will secure up to 2,000 microturbines from Capstone over the next two years. Capstone delivered its 1,000th microturbine late last year. The 30 kW units cost about $30,000 each. The order is valued at up to $60 million.

ACWA uses up to seven percent of the state’s electricity on pumping stations needed to irrigate farms, and many of its members have been hit hard by California’s energy woes. Under the agreement, Harza will buy the microturbines from Capstone and install them for ACWA’s member water agencies. “For Harza, this will end up being our largest order ever,” says Harza Energy LLC President Steve Chippas.