Capstone Energy+ Signs Flare Gas Recovery Deal in Gabon

Capstone Energy+ Secures Flare Gas Recovery Project with Maurel & Prom in Gabon

Capstone Energy+, Inc. (NASDAQ: CEPL), a provider of clean microturbine energy systems for industrial, commercial, and emerging data center applications, has announced a new project with international oil and gas company Maurel & Prom to deploy a flare gas recovery solution at the company’s onshore operations in Gabon, West Africa. The initiative highlights the growing use of innovative energy technologies that convert waste gas into valuable electricity while supporting emissions reduction goals and improving operational efficiency.

The project will feature the installation of a Capstone C600 Signature Series microturbine, designed to operate on recovered associated gas that would otherwise be burned through routine flaring. By transforming this gas into electricity for on-site operations, the system enables Maurel & Prom to maximize energy resources that were previously wasted while reducing greenhouse gas emissions.

The agreement has been structured through Capstone Energy+’s Energy-as-a-Service (EaaS) business model, allowing Maurel & Prom to access advanced energy technology under a Lease-to-Own (LTO) arrangement. Rather than making a large upfront capital investment, the operator will pay fixed periodic lease payments while benefiting from reliable power generation and long-term operational flexibility.

Commissioning of the project is scheduled for November 2026.

Supporting Flare Gas Valorization

Routine gas flaring remains a significant challenge for oil and gas operators around the world, particularly in regions where infrastructure for gathering and transporting associated gas is limited or unavailable. During oil production, associated natural gas is often produced alongside crude oil. Without pipelines or processing facilities, operators frequently burn the gas at the production site, releasing carbon dioxide and other emissions while wasting an energy resource that could otherwise be utilized.

Governments, regulators, and energy companies have increasingly focused on reducing routine flaring as part of broader environmental and sustainability initiatives. Projects that capture and utilize associated gas have become an important strategy for lowering emissions while improving energy efficiency.

Capstone’s latest project directly addresses these objectives by converting flare gas into dependable electrical power. Instead of allowing associated gas to be burned without productive use, the recovered fuel will supply electricity for Maurel & Prom’s field operations, helping improve overall energy utilization while reducing environmental impact.

The project demonstrates how decentralized power generation technologies can play an increasingly important role in supporting upstream oil and gas facilities operating in remote regions where grid access is unavailable.

Reliable Power for Remote Operations

Oil and gas production sites located in isolated regions often require dependable on-site electricity to operate drilling equipment, processing systems, communications infrastructure, lighting, and other essential facilities.

Traditional diesel generators have long served as the primary source of electricity for these operations. However, they require continuous fuel transportation, regular maintenance, and higher operating costs, particularly in difficult-to-access locations.

Capstone’s microturbine technology offers an alternative by utilizing available associated gas directly at the production site. Instead of relying on imported fuel supplies, operators can generate electricity using a resource already present during production.

According to Capstone President and Chief Executive Officer Vince Canino, the project illustrates how flare gas recovery can address multiple operational challenges simultaneously.

He noted that converting gas previously destined for flaring into dependable electricity not only reduces emissions but also provides the reliable power required for remote industrial operations. Applications in tropical environments located far from electrical grids represent ideal use cases for the company’s microturbine technology.

The ability to transform waste gas into productive energy helps operators improve both environmental performance and operational resilience.

Growing Need to Eliminate Routine Flaring

Across Sub-Saharan Africa and many other oil-producing regions, flare gas remains a significant environmental concern.

In many producing fields, associated gas lacks sufficient transportation or processing infrastructure, making routine flaring the simplest operational solution. However, increasing regulatory pressure and global climate initiatives are encouraging producers to identify practical alternatives that reduce emissions while maintaining production efficiency.

International organizations and governments continue promoting investments in flare gas recovery technologies that can capture and utilize gas resources instead of burning them.

Capstone believes its microturbine systems provide a practical solution because they can generate electricity directly from associated gas without requiring expensive pipeline infrastructure or major facility upgrades.

This approach enables producers to implement flare gas utilization projects more rapidly while avoiding the substantial capital expenditures associated with large-scale gas processing facilities.

Microturbine Technology Designed for Challenging Conditions

One of the distinguishing features of Capstone’s microturbine platform is its ability to operate continuously using variable-composition fuel streams, including associated gas recovered from oil production.

Unlike conventional reciprocating engines that require frequent maintenance and lubrication systems, Capstone’s microturbines utilize a single moving part supported by air bearings.

This design eliminates the need for lubricating oil and coolant while significantly reducing maintenance requirements.

The simplified mechanical configuration also minimizes wear, increases reliability, and reduces service interruptions, making the equipment particularly well suited for remote industrial installations where maintenance logistics can be both expensive and challenging.

For operators working in isolated oil fields, minimizing maintenance visits translates into lower operating costs and improved equipment availability.

The system’s ability to handle varying fuel compositions also provides additional flexibility since associated gas quality can fluctuate during field production.

Energy-as-a-Service Model Reduces Capital Requirements

An important aspect of the project is its commercial structure.

Rather than purchasing the equipment outright, Maurel & Prom is utilizing Capstone’s Energy-as-a-Service offering through a 36-month Lease-to-Own agreement.

The financing model allows customers to deploy new factory-built energy systems while treating the investment primarily as an operating expense instead of a capital expenditure.

This approach helps preserve financial flexibility by reducing the need for significant upfront spending while still providing access to modern power generation technology.

At the conclusion of the lease period, customers have multiple options, including purchasing the equipment, renewing the lease, or upgrading to newer technology depending on future operational requirements.

The flexible structure aligns well with upstream oil and gas projects, where production profiles and operational needs may evolve over time.

By matching financing with project economics, the EaaS model offers operators greater adaptability while ensuring continued access to reliable power generation.

Environmental and Operational Benefits

Maurel & Prom views the project as supporting both sustainability objectives and operational performance.

According to Ibrahim Ben Ameur, Lead Process Engineer at Maurel & Prom, converting flare gas into dependable on-site electricity helps the company advance its environmental goals while meeting the energy demands of its operations in Gabon.

He also noted that the leasing arrangement provides important financial flexibility, allowing the company to deploy advanced technology without compromising capital allocation priorities.

The project illustrates how environmental improvements and operational efficiency can be achieved simultaneously through practical energy solutions.

Instead of treating associated gas as waste, the recovered fuel becomes a productive energy source capable of supporting continuous industrial operations.

Expanding Presence in Africa

The Gabon project represents another step in Capstone Energy+’s expansion across the African upstream energy market.

Many oil-producing regions throughout Africa continue to face challenges related to remote operations, limited infrastructure, and routine gas flaring. These conditions create growing demand for modular energy technologies capable of delivering reliable electricity directly at production sites.

Capstone’s microturbine systems, combined with flexible financing options such as Energy-as-a-Service and Lease-to-Own agreements, position the company to address these market opportunities.

As governments strengthen emissions reduction policies and operators seek cost-effective methods to improve sustainability, decentralized power generation solutions are expected to play an increasingly important role in flare gas utilization strategies.

By enabling operators to convert waste gas into reliable electricity while preserving financial flexibility, Capstone continues expanding its portfolio of clean energy projects that combine environmental responsibility with practical industrial performance.

With commissioning planned for November 2026, the Maurel & Prom installation will demonstrate how innovative microturbine technology can help transform routine flare gas into a valuable energy resource, supporting reliable field operations, reducing emissions, and advancing more sustainable oil and gas production practices in Gabon and beyond.

Source Link: https://www.businesswire.com/

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