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Volume I, Issue 1, December/January 2001 Copyright  2000 Resource Dynamics Corporation

Capstone Turbine Sales Increase: Will Profits Follow?

California based Capstone Turbine began commercial sales of their MicroTurbineTM power systems in 1998 but in the past year they have announced a flurry of orders, including the shipment of their 1000th microturbine unit on November 27th. On October 11th Capstone announced a two-year, 126-unit order for its systems from American Energy Savings Inc. On August 21st, they announced a 52-unit order from Cincinnati-based Cinergy Corp. In addition, Capstone has arranged with Alliant Energy, New Energy Ventures and Kohler Power Systems to jointly distribute and market the Capstone MicroTurbineTM. Capstone began by broadly targeting the distributed generation market, but acknowledged that they must focus on reducing unit costs to reach full market penetration. Additional Capstone research continues on the

GE Expands DG Presence

General Electric (GE) has made a big splash in the DG industry with its recently announced plans to acquire Honeywell. Combined, the two companies will offer a wide range of traditional engines with aircraft, industrial and energy applications. As a bonus, GE will also acquire the Honeywell microturbine program.

The question, then, is in what fashion and to what extent GE will alter its position in the DG market with the addition of the Honeywell Parallon 75 microturbine to its existing line of Nuovo Pignone and GE turbines and Plug Power-produced GE HomeGen 7000 residential fuel cells. GE, through subsidiary GE Power Systems, has distribution (continued on page 2)

application of their technology in hybrid electric vehicles, onboard generation, resource recovery (i.e. converting oilfield and biomass waste gases into electricity), and micro-cogeneration.

Capstone has gained a (continued on page 2)

Fuel Cells Move Towards Commercialization

For decades, great interest has been expressed in the development and potential of fuel cell technology. However only recently, steps by fuel cell manufacturers to reduce costs and facilitate marketing and distribution are making commercialization look like a reality. Several companies have been in recent headlines as proactive participants in this new market.

Ballard Power Systems hopes to launch its first commercial proton exchange membrane (PEM) fuel cell system in 2001, and has concentrated its efforts on actively pursuing relationships with strategic value in the development and distribution of its products. In addition to existing ties with partners GPU International, Alstom and Ebara, in October (continued on page 3)



Capstone Sales Increase 1 GE Expands DG Presence 1 Fuel Cell Commercialization 1


DG Notes 3 Technology Series:

Reciprocating Engines 4 RDC DG News 5

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