Capstone Energy+ (CEPL) H.C. Wainwright 28th Annual Global Investment Conference summary

Industry trends and market drivers

• Energy consumption patterns have shifted due to data center growth, advanced manufacturing, and increased weather-related outages.

• Distributed generation is moving from small to larger megawatt applications, reflecting rising demand.

• Data centers are a major growth market, but port electrification and utility grid support are also key focus areas.

• Utilities are seeking solutions for substation protection and capacity guarantees, integrating distributed generation.

• Community concerns about emissions, water use, and noise are increasingly influencing technology adoption.

Technology advancements and operational benefits

• The core technology features a single moving part on an air cushion, reducing friction, maintenance, and downtime.

• Simpler installation and lower maintenance intensity compared to traditional reciprocating engines.

• Units can be installed quickly with minimal hookups, supporting larger-scale deployments.

• Waste heat recovery enables efficient combined heat and power, demonstrated in real-world hotel installations.

• Engineering partnerships are testing new data center solutions, including power-only and integrated cooling approaches.

Strategic initiatives and future plans

• Manufacturing capacity has increased from 2 MW to 7 MW per week on one shift, with potential for further scaling.

• Supply chain improvements and flexible factory setups support rapid expansion to meet large orders.

• New product development includes 800 VDC architecture compatibility, ultra-low emissions liners, and higher-efficiency engines.

• The C250 engine release is delayed to achieve greater efficiency, with plans for 500 kW and 1 MW engines to match future data center loads.

• Diversification into multiple growth markets aims to balance cyclical demand and ensure long-term stability.