Turbine Talk

Capstone Turbine Corporation's Quarterly Newsletter Winter 2010

At a glance Case Study: Syracuse University

Syracuse University, New York, USA Capstone Hybrid UPS MicroTurbines® Installed in one of the
World’s Greenest Data Centers
Commissioned
Escalating demand for greater computing capabilities and data storage meant
December 2009 Syracuse University needed to replace its outdated data center, which had been
housed in an old brick building for decades.
Fuel
The university – regularly ranked among the Top 100 in the United States –
• Natural gas
responded with the opening of the Green Data Center, one of the world’s most
• Propane-air mixture as backup fuel if energy efficient and green data centers. The 12,000-square-foot facility, which
natural-gas system fails opened December 2009, is designed to use 50 percent less energy and produce
fewer greenhouse gasses than traditional data centers.

Technologies
• 12 Capstone C65 Hybrid UPS MicroTurbines®
used in a combined heat and power
application.
• Two 150-ton Thermax® absorption chillers.
• Cain Industries heat exchanger.
• Validus® high-voltage AC-DC rectifier.
• One 40-ton EnerSys® battery bank to
carry the data center’s maximum load
for 17 minutes in rare catastrophic
situations.

Results
• The data center is one of world’s greenest.
It is designed to use 50% less energy
and produce fewer greenhouse gasses
than traditional data centers.
• Capstone’s Hybrid UPS generates power
while also using utility power to meet
the center’s electrical load demand. This
allows the system to operate at the optimum Key to the center’s energy savings are 12 patented Hybrid UPS MicroTurbines®
point, which is a balance between electrical from Capstone Turbine Corp. that power the entire facility. Capstone’s
Hybrid UPS is the first onsite power system to integrate clean-and-green
requirements and heating and cooling C65 (65-kilowatt) microturbines directly with a dual-conversion UPS to provide
demand. power for mission-critical loads.
• The power system always operates in an
The low-emission microturbines are the heart of an innovative trigeneration –
N+1 redundancy configuration with the high or combined cooling, heating and power (CCHP) system – that further boosts
level of reliability required by a productive the data center’s energy efficiency. Capstone distributor BHP Energy integrated
the design of the CCHP system so the 12 natural-gas microturbines produce
data center. electricity and supply heat and cooling power to the data center and a nearby
building.
 Capstone Microturbines: Heart of Energy Savings
Traditional data centers rely on power from the utility and
have banks of batteries that keep servers and equipment
running during a short power loss. A stand-by emergency
diesel generator is typically used for longer outages.

At Syracuse, the Capstone microturbines allow the data

center to be isolated from the utility, yet draw on the utility
as a backup power source.

A 40-ton EnerSys® battery bank with enough power to

carry the maximum load for 17 minutes is available for rare
catastrophic situations. It’s highly unlikely, however, that
the batteries ever will be used because microturbines are
renowned for their high reliability and low maintenance.

Extreme Efficiency Through Integration

of Multiple Technologies
The Green Data Center achieves its renowned energy
savings and efficiency through the integration of several
advanced technologies, many of which never have been
used together in a data center setting.

The 12 Capstone microturbines and the trigeneration

system are a hallmark of the innovative onsite technologies.
IBM was a major partner in the project and provided
US$5 million in design services, support and equipment,
such as “cooling doors” that use chilled water to cool each
server rack independent of its neighbors. This reduces
cooling and energy costs.

Two 150-ton Thermax® absorption chillers onsite convert

exhaust heat from the microturbines into energy that chills
water used to cool the racks and the entire building. A Cain
Industries heat exchanger can be used at the same time as
the chiller to produce hot water to heat peripheral areas
of the data center and the building next door.

The system also employs free cooling when the

temperature outside is low. A heat exchanger is used to
produce chilled water directly from a cooling tower on
the roof.

IBM also provided computer equipment that operates

Capstone Hybrid UPS installed in Syracuse University’s Green Data Center.
The center is designed to use 50 percent less energy than traditional
data centers.
from a direct current (DC) powered distribution system,
thus eliminating traditional power loss associated when
converting alternating current (AC) electricity from the
utility to DC to power servers. Validus® DC Systems supplied
the project with high-voltage DC equipment, including
AC-DC rectifiers. 

Capstone Factory Protection Plan: A Factory Protection Plan from

Capstone Turbine Corporation minimizes downtime and fixes
maintenance costs, ensuring your system will operate when needed and
perform as intended at the lowest total cost of ownership.
Capstone’s Authorized Service Providers: Factory trained professionals provide
Service full service capability when needed.
Capstone Service Network (CSN): Monitors and records key data on

2
Capability the operation and performance of your microturbine(s) on a 24 x7 basis.
Fuel Flexibility of Microturbines
By Marc Rouse, Capstone Product Manager
Generator Exhaust Outlet
Capstone microturbines are highly fuel flexible. The Cooling Fins
continuous combustion process of gas-turbine technology
allows for a complete and controlled burn of a range
of hydrocarbon fuels. Fuel flexibility means Capstone
Recuperator
microturbines are ideal for a number of markets. Even while
Air Combustion
operating with different fuels, the microturbines retain all
Intake Chamber
of Capstone’s energy-production benefits, such as high fuel
efficiency, superior reliability and low emissions.

Each microturbine application must be designed to effectively

deliver the necessary fuel to the engine. For this reason, the
Capstone Microturbine Fuel Requirements Technical Reference Generator
is a valuable resource for distributors and customers. In
more complex or unconventional applications, the Capstone
Applications Group can provide additional guidance on
handling out-of-specification fuels.
Compressor
A review of typical gas-turbine processes is a good starting
point for a discussion on how turbine technology achieves fuel
flexibility (see Figure 1): Turbine
Figure 1
1. Ambient air is pulled in through a filter and compressed.
The amount of air compressed is much greater than what
Fuel contaminants are a real issue that can have negative
is needed for combustion. Some compressed air is used to
impacts on turbine performance and life. Contaminants in the
cool parts in hot sections of the engine.
fuel stream come in contact with the fuel compressor or pump,
fuel valve, manifold or injectors, combustor, power turbine
2. In recuperated models, which include all Capstone
and recuperator. To maintain the integrity of the system,
products, the recuperator transfers waste heat from
it is important to keep fuel containments within the limits
combustion exhaust to the compressed air. Energy
specified by the Fuel Requirements Technical Reference. This
recovered from the exhaust offsets fuel usage and
will allow the microturbine to remain consistent with baseline
greatly increases the system’s electrical efficiency.
fuel performance, such as natural gas, over the project’s life.
3. The pre-heated, compressed air enters the combustion
For example, to achieve reliable operation, the landfill gas-
chamber where fuel is added. A gas turbine’s combustion
fueled project in La Ciotat, France (see Figure 2) required
process is continuous and well controlled, rather than
gas compressors, water-glycol chillers and heat exchangers
intermittent (as in a reciprocating engine).
for moisture removal. In addition, the system used activated
carbon filtration to condition the fuel gas for microturbine
4. Additional energy from the combustion process is
consumption.
extracted during the power turbine stage, thus creating
mechanical power that ultimately drives the compressor
Different fuel types can have varying combustion properties.
wheel and generator.
Depending on the fuel’s constituents, which may consist
of hydrocarbons and inert gasses, different fuels will have
5. The hot, post-turbine exhaust then passes through the
different physical properties. The impact of these properties
recuperator, where it transfers some energy to the
must be taken into consideration, especially with respect to
incoming compressed air stream (Step 2 above).

6. The combustion products and residual heat are rejected

through the exhaust stack, where they may be released
to the ambient air or passed through additional
equipment to recover additional energy.

Gas turbines require fuel to be compressed (or pumped, for

liquid fuels) through an injector into the engine to overcome
pressures associated with the combustion chamber. This
is due to the compression of the combustion air in Step 1
above. Different fuel types require different compression,
conditioning or pumping methods depending on the fuel’s
properties and containments. Capstone offers standard gas
compressors and pumps that cover many fuel types. For fuels
outside the design ranges of the standard units, external
pumping and compression systems may be needed.
Figure 2
3
 the gas turbine’s injectors, fuel control system and the power
turbine nozzle size.
For example, properties like the fuel’s heating value will
influence the amount of fuel consumed per kilowatt-hour
of power generated, which in turn affects the sizing of fuel
control valves for full power consumption and idle operation.
Software settings also may be influenced by fuel properties
so that fuel system components can respond appropriately
to changes in power demand.
Internal components also must be designed to maintain the
correct conditions within the combustor to provide stable
operation and minimize emissions. Capstone microturbines
are fuel flexible, but a single gas turbine cannot be used with
just any fuel type. While some models can easily be modified
to burn an alternate fuel type, other models require extensive
reconfiguration and/or ancillary equipment.
Capstone’s Jim Crouse Elected Board Chairman for
World Alliance for Decentralized Energy (WADE)
Capstone Turbine is taking a lead role in the effort to accelerate
worldwide development of cogeneration, onsite power and
decentralized renewable energy systems.
Jim Crouse, Capstone’s Executive Vice President for Sales and
Marketing, recently was elected Chairman of the board of
directors for the World Alliance for Decentralized Energy.
As WADE’s Chairman, Crouse will help the organization set
its agenda and expand its global presence.
WADE’s membership includes more than 200 corporate leaders
in the decentralized-energy industry, national cogeneration
and decentralized energy associations, and a number of public
and private institutions. Together, they work to advance
decentralized energy at the country and regional levels.
"Crouse is ideal for the position," said David Sweet, WADE
Executive Director.
“Jim brings a tremendous amount of experience from his
years in the worldwide energy marketplace,” he said. “He’s
extremely well respected because of his deep knowledge about
decentralized energy systems and the barriers in various regions
that slow acceptance of the technology. Those are the exact
traits WADE looks for in its leadership.”
WADE regularly initiates programs to advance decentralized
energy worldwide, including:
1. research and analysis on energy and the environment;
2. global advocacy of policies and programs that level the DE
playing field;
3. organization of events to advance the DE technology market
and showcase member products;
4. dissemination of DE market intelligence and breaking news
to members; and
5. communication of the DE message to policy makers and the
public.
Before WADE, the organization was called the International
Cogeneration Alliance. The Alliance was formed out of
4
One notable advantage of gas turbine engines over
reciprocating engines is the gas turbines’ ability to burn
very low-energy fuel sources, which often are found in
landfills and occasionally in gas fields. Reciprocating engines
experience a decrease in power output when burning low-
energy fuels, whereas gas turbines do not. Capstone offers
several configurations that are capable of low-BTU fuel
operation.
Capstone microturbines are available in configurations that
can operate on most commonly used fuel sources. This allows
Capstone to serve a range of applications and markets around
the globe. These configurations include different fuel systems
and some modifications to turbine internals. The Capstone
Applications Group and Fuel Requirements Technical Reference
are designed to help Capstone distributors specify compatible
microturbine products and ancillary systems to ensure each
microturbine project has opportunity for long-term success. 
discussions at the 1997 United Nations Framework Convention
on Climate Change about cogeneration as a climate-change
strategy. In 2002, the group changed its name to WADE and
broadened its scope to include all DE technologies.
To learn more about WADE, visit www.localpower.org. 
Jim Crouse encourages all Capstone distributors to
consider joining WADE. He said WADE is beneficial
because it offers:
• More sales. WADE’s influence on policy changes
worldwide are leading to new DE sales today.
• Free or discounted DE market information.
• Regular market and policy briefings via e-mail.
• Free access to WADE policy and market reports.
• Reduced fees and sponsorship rates, and priority
speaking opportunities, at WADE conferences and
events.
• Opportunities to work with WADE offices in Canada,
Egypt, India, Peru, the UK and the United States, and
with emerging WADE member groups in China,
India and Russia.
• Direct access to DE/CHP organizations and other
members in key markets.
• Opportunities to place articles in Cogeneration and
Onsite Power Production magazine.
To download a WADE membership application, visit
www.localpower.org.
Distributor Spotlight
FEL Method a Key to Industrias Energeticas’ Strong Sales & Project Implementation
Immediately after Mexican distributor Industrias Energeticas
joined the Capstone team last August, the company sold four
C30 microturbine systems to a large Mexican oil company.
The quick, US$500,000 sale isn’t surprising to Juan Carlos
Hernandez, Industrias Energeticas Manager, because of the
company’s proven method to determine the likelihood of sales
– and project – success.
The 20 employees of Industrias Energeticas use the Front End
Loading approach (also referred to as Pre-Project Planning) to
confidently evaluate potential projects to ensure they’re good
business for the company.
“It helps us prioritize requests from potential customers,”
Hernandez said about FEL methodology. “It’s a system that’s
very popular in Mexico, especially in the oil-and-gas industry.”
Industrias Energeticas has three criteria that potential
customers must meet: the customer must be international in
scope, have strong and efficient internal processes, and be
financially strong and stable.
Once a customer is secured, Industrias Energeticas employees
continue using the FEL method to keep costs low and ensure
the project flows smoothly. At the beginning – or front
end – of a project’s lifecycle is when robust planning and
design occurs. This is when Industrias Energeticas can more
easily influence change in design and when the cost to
make changes is relatively low. Hernandez admits that FEL
sometimes adds a small amount of time and cost to the early
portion of a project. However, the costs are minor compared
to the costs and effort to make changes during a project’s later
stage.
All Industrias Energeticas employees are involved in the FEL
process. “Everyone in the company has his or her role and
knows the time to be involved in the process, because they
completely understand this methodology.”
While FEL plays a key role in the company’s success, Hernandez
says it’s just one part of the organization’s overall sales and
project-implementation effort.
“FEL is a road map for our organization, but it’s only one
tool,” he said.
“Communication is priority,” Hernandez said. “If you don’t
have two-way communication with your team, it’s all wrong.
As a manager, you’re the captain. The company is a vessel.
Every day you have to talk to people about where the
company is going and ask them 'How is the situation in front
of the vessel, to the sides and all around it?' You have to
listen.”
Hernandez has built strong relations with the government-run
oil company Pemex over the years. Even though he worked
for Pemex for 10 years, he still is adamant about networking
with different Pemex executives and government officials each
week. He doesn’t limit his networking to Pemex. In addition,
he regularly meets with other potential customers, such as
industrial manufacturers and such organizations as schools,
hospitals and retail.
“In Mexico, you need to stay very flexible and be constantly
aware of the political and business issues that face different
parts of the country,” he said. “That means I’m in lots
of meetings with key officials to see with my own eyes
how business in Monterrey is different than in Yucatan. I
pride myself on knowing what’s going on because of the
relationships I’ve built and information I’ve collected.”
Hernandez is passionate about Capstone products. In fact,
he says passion for Capstone products and systems is the key
ingredient to distributor success. “A distributor must have
passion for this equipment, passion for the future of Capstone,
passion for the sales. If you don’t have passion, you won’t be
successful.” 

FEL phases

Operation
Conceptualiza-
Pre-FEL Visualization Definition Execution and
tion
feedback

Plan for Identify Quantify Basic Detailed design Track plan

resources opportunities economics engineering vs. real
and scenarios Plan and logistics
Define roles Define options Operations plan Measurement
Classify risks and portfolio Risk management
Define success Risk plan KPI monitoring
criteria Align objectives Rank by value, Execution
risk, and effort Contracting Plan correction
Define models Identify quick Supervision
required Sanctioning
and scope wins Measurement

Identify and evaluate options Design and materialize options

Source and copyright: Oil & Gas Financial Journal, July 2008
5
 How Does it Work?
Advanced Power Server (APS)
By Nyan Win, Capstone Applications Engineer
Capstone’s Advanced Power Server (APS) is a pre-engineered
control system for the advanced dispatch and control of multi-
microturbine installations and ancillary balance of plant (BOP)
equipment.
The APS uses a touch screen HMI on a Windows CE-based
Panel PC, which runs the main control code for turbine dispatch
and control. Also included in the APS are:
• Micro PLC (programmable logic controller)
• UPS (uninterrupted power supply)
• Ethernet switches
• User terminal blocks
The APS’s Micro PLC manages ancillary instrumentation
and control signals that are outside the microturbine’s control
scope. The use of industry-standard communication protocol
provides the flexibility necessary to meet a range of customer
applications.
The APS has two serial RS-485 connections. These connections
allow the system to act as a Modbus Master or Slave to provide
connection to third-party BOP devices or supervisory control
systems.
The APS features a number of advanced dispatch modes.
Maximum Efficiency mode can save a customer thousands of
dollars in microturbine fuel costs by optimizing the efficiency
of a multi-unit installation. The Maximum Efficiency feature
only will run the minimum number of microturbines required
to meet power demand.
In stand-alone applications, Spinning Reserve mode and
Minimum Power Capacity mode can be used in conjunction
with Maximum Efficiency mode to ensure sufficient power
is ready to come online to handle larger power transients.
The Run Time Balance mode also is useful and can save costs
by aligning maintenance intervals in multi-unit microturbine
applications. The Run Time Balance feature selects the
Capstone Exposure Strong at Los Angeles Auto Show
6
microturbines with the lowest running hours and operates
the units based on the needs of the Max Efficiency control
algorithm. The system then rotates those microturbines with
a user-defined operation hours delta to equalize the running
hours across all turbines.
The APS acknowledges visual, user-defined groups of
microturbines and can assign different dispatch modes to each
group. It allows up to three groups in Grid Connect mode and
one in Stand Alone mode. These groups can use any of the
following dispatch modes, including:
• Remote power demand mode
• Remote start/stop mode
• Time of use (TOU) per groups / turbines / dispatches
• Thermal load following mode
• Load balancing mode
Details of these specific APS features are available in the APS
product data sheet and related documents or can be discussed
with Capstone's Applications Engineering Group. Use the APS
Application Form, available in Capstone’s Online Document
Library, to keep a record of your APS implementation and
facilitate custom configuration and programming requests. 
Capstone’s strong presence at the Los Angeles Auto Show
Dec. 2-14, 2009 provided solid exposure for the company’s
innovative microturbine systems in an HEV application.
It was a media frenzy for Capstone during “Media Days”
Dec. 2-3 at the LA Auto Show, with reporter after reporter
visiting Capstone’s booth at the Los Angeles Convention
Center. The annual event, full of glitz, was an ideal stage
to premier the eye-catching CMT-380, Capstone’s prototype
hybrid-electric supercar. Under its sleek Factory Five Racing
GTM body, the CMT-380 features a C30 microturbine that
charges the hybrid’s lithium-polymer battery cells to give the
hybrid an extended driving range of up to 500 miles. The
amount of interest generated from the supercar’s release at
the 12-day auto show was startling. In the days and weeks
surrounding the show, online, print and broadcast media
produced thousands of articles about the CMT-380’s release.
Thousands of show visitors stopped by the booth. In early
February 2010, Capstone struck a deal with Velozzi, a Los
Angeles-based car designer and manufacturer that Capstone
executives met at the show, to integrate Capstone C30
and C65 microturbines into Velozzi’s electric supercar and
crossover vehicle. 
News from the Globe
Capstone Receives $3.8 Million U.S. Department of Energy Grant
for Flex-Fuel Microturbine
Capstone will use the DOE grant to develop a microturbine capable of operating
on a wider variety of biofuels, particularly syngas produced from biomass.

U.S. DOE and Israel Award Capstone $800,000 Bi-National Industrial Research
and Development (BIRD) Foundation Grant
Capstone will work with Israel’s HelioFocus Ltd, on a development project to
commercialize a microturbine that will produce electric power from concentrated
solar energy. Using superheated air created by a HelioFocus solar receiver, a specially
designed externally fired C65 microturbine will be able to produce efficient solar
power.

IBT Group Installs First CR65s at Landfill in Italy

Capstone distributor IBT Group sold the first-ever microturbines for an Italian landfill
to CEM Ambiante SpA, a solid-waste management company serving more than 400,000
residents around Milan. The microturbines will run on the landfill’s waste-methane gas
and produce combined heat and power for the facility.
Upcoming
Events
Capstone’s Natural Gas C200 Microturbine Earns Low-Emission Verification from
New Jersey Corporation for Advanced Technology
Independent NJCAT testing verifies the natural gas C200 meets the state’s air quality
regulations to be classified as an “insignificant source” of emissions, thus greatly 3-6 May 2010
simplifying the air-permitting process required by the state’s Department Offshore Tech Conference
of Environmental Protection. Reliant Center
Booth 9334
Capstone C65 and C30 Microturbines to be integrated into Velozzi Electric Supercars Houston, Texas
and Sports Crossover Vehicles
8-10 June 2010
The Los Angeles-based car designer and manufacturer expects to have its electric
PowerGen Europe
770-horsepower supercar with a C65 range extender ready for market by late 2010. The Rai
Sometime in 2011, Velozzi’s SOLO, a lightweight electric crossover with a Capstone Booth B102
C30 aboard, will be available. Amsterdam, Netherlands

Capstone at Trade Mission to North Africa

In February Capstone participated in the U.S. Executive Trade Mission to North Africa
to expand its distribution network and capitalize on Oil & Gas and CHP opportunities
in the region.

Federal Legislation in U.S. to be Introduced in Spring

Subscribe
To subscribe to Capstone's
Federal legislation focusing on energy tax credits and a national portfolio standard quarterly newsletter, email
for utilities is expected to be introduced this spring. Congress is not likely to impose your name and email address to
greenhouse-gas regulations until late 2010 at the earliest. marketing@capstoneturbine.com
Contact jrathke@capstoneturbine.com for updates.

This document contains "forward-looking statements," as that term is used in the federal securities laws, about expanded
market opportunities and the environmental advantages, reliability, cost and energy efficiency of Capstone products. These
forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with
the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future
results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking
statements, which speak only as of the date of this report. Capstone undertakes no obligation, and specifically disclaims any
obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of the
release of this document or to reflect the occurrence of unanticipated events.

21211 Nordhoff Street • Chatsworth • CA • 91311 • 818.734.5300 • Fax 818.734.5320 • www.capstoneturbine.com

© 2010 Capstone Turbine Corporation. All rights reserved. Winter 2010 Newsletter.