Capstone Energy+ (CEPL) investor relations material

Energy certainty and grid role

• Distributed generation positioned as a complement to utilities, helping address grid constraints and deliver power faster, cleaner and more reliably.

• Customers prioritize dependable power and expansion capacity; a Utah resort asked for power the grid could not provide.

• Microturbine design emphasizes modularity, low maintenance intensity and no oil, lubricants, coolants or water.

• Six-unit installation comparison highlighted simpler system design and lower installation costs versus reciprocating engines; total cost of ownership can favor microturbines despite higher costs in some cases.

Market opportunity and applications

• Cited $265M TAM was characterized as conservative; opportunity spans data centers, port electrification, mobile and temporary power, and utility microgrids.

• Utility deployments could address localized grid weaknesses through 5 MW, 10 MW and 20 MW projects, including substation backup and transformer protection.

• Data centers are attractive but complex and slow-moving; other markets may support a more diversified growth opportunity.

• Utility microgrids were described as a major underrecognized opportunity, with distributed generation supporting rather than competing with utilities.

Product and technology roadmap

• 800-volt DC power architecture, prompted by NVIDIA's direction, targets reduced copper use and space needs; potential applications include oil and gas compression.

• Current NOx emissions are 9 PPM; a 5 PPM liner was developed and remained in cold-weather testing, with potential to go lower.

• A 250 kW engine is planned within the next year to improve power density for data centers and ports.

• Heat-recovery technology is under development to improve system efficiency; integrated heat recovery was cited as enabling up to 90% useful energy from natural gas.

• R&D is exploring larger engines and turbines, as well as technologies beyond turbines.