Capstone Green Energy Secures Order from Valparaiso Community Schools for High-Efficiency CHP Systems

Four C65 microturbines to support the district’s ambitious energy savings initiative, delivering prime power and CHP across two campuses

Capstone Green Energy Holdings, Inc. (the "Company” or “Capstone”) (OTCQX: CGEH), announced today that Valparaiso High School and Benjamin Franklin Middle School, part of the Valparaiso Community Schools (VCS) district in Indiana, have placed an order for four C65 Capstone microturbines. Two units will be installed at each campus and paired with Vergent Power Solutions controllers to deliver both prime power and combined heat and power (CHP) for domestic hot water and building heating. The order was secured by Vergent Power Solutions, Capstone’s exclusive distributor for the Midwest and Northeast United States and Eastern Canada and is expected to be commissioned later this month.

This project marks another successful collaboration between Vergent and Veregy, a NAESCO-accredited, energy services company (ESCO). The two companies first partnered in 2020 to bring a Capstone C65 system to Argos Community Schools in Indiana, a project that improved energy efficiency, lowered costs, and strengthened resiliency. Five years later, the project met or exceeded all of its energy conservation goals.

The new installations at VCS are the cornerstone of Valparaiso’s Phase 2 $17 million Guaranteed Energy Savings Contract (GESC). Phase 2 includes solar, retro-commissioning, and other energy efficiency upgrades. This Phase 2 project builds on the district’s earlier sustainability efforts, which have already generated more than $7.6 million in projected energy savings over 12 years through the use of solar arrays, LED lighting upgrades, HVAC enhancements, and real-time utility monitoring. Together, these efforts represent one of the most comprehensive K–12 energy efficiency programs in the state of Indiana.

“This Phase 2 project highlights how Valparaiso Community Schools is taking a holistic approach to energy efficiency and sustainability. The best kWh generated is always a kWh saved,” said Vince Canino, President and Chief Executive Officer of Capstone Green Energy. “We are proud to see our technology becoming part of VCS’s evolving microgrid fabric - working alongside their solar, lighting, and HVAC systems. Our ability to help deliver resiliency, affordability, and sustainability in a learning environment is a source of pride, and we’re honored to support the next generation by innovating today for a cleaner tomorrow.”

Fueled by clean natural gas, the four Capstone C65 systems will provide reliable, low-maintenance, and quiet on-site power, an especially important feature given their proximity to classrooms. By producing both electricity and heat, the CHP systems will further reduce utility costs and support the district’s long-term sustainability and resiliency goals.

“This repeat order from Veregy shows that microturbines are not just a one-off solution; they are a cornerstone of a long-term energy strategy,” said Justin Rathke, President of Vergent. “Their quiet operation and reliability make them an ideal fit for schools, and their ability to generate on-site power and heat helps clients like Valparaiso reduce costs and build a more resilient energy future.”

This installation represents another successful deployment of Capstone technology in the education sector, where energy efficiency, sustainability, and cost savings are critical. By producing both electricity and useful heat on-site, the schools will reduce their environmental footprint while ensuring a resilient energy supply for students and staff.

About Capstone Green Energy

For nearly four decades, Capstone Green Energy has been a leader in clean technology, pioneering the use of microturbines to revolutionize how businesses manage their energy needs sustainably. In collaboration with our global network of dedicated distributors, we have shipped over 10,600 units to 88 countries, helping customers significantly reduce their carbon footprints through high-efficiency, on-site energy systems and microgrid solutions.

Our commitment to a cleaner, more resilient energy future remains steadfast. Today, we offer a comprehensive range of microturbine products, from 65kW systems to multi-megawatt solutions, tailored to meet the specific needs of commercial, industrial, and utility-scale customers. In addition to our core microturbine technology, Capstone’s growing portfolio includes flexible Energy-as-a-Service (EaaS) offerings, such as build-own & transfer models, PPA’s, lease to own and rental solutions, are designed to provide maximum value and energy security.

Capstone’s fast, turnkey power rental solutions are designed for customers with limited capital budgets or short-term energy needs. For more information, please contact us at rentals@CGRNenergy.com.

In our pursuit of cutting-edge energy solutions, Capstone has forged strategic partnerships to expand our impact and capabilities. Through these collaborations, we proudly offer advanced technologies that leverage renewable gas and heat recovery solutions—further enhancing the sustainability, efficiency, and reliability of our clients' operations. These integrated offerings reflect our commitment to building a cleaner, more responsible energy future.

For more information about the Company, please visit www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Notes

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the impact of the acquisition of Cal Microturbine on the Company’s earnings, cash flow and operational efficiency. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the Company being unable to achieve the anticipated benefits of the acquisition; the acquired business not performing as expected; the Company assuming unexpected risks, liabilities and obligations of the acquired business; transaction costs associated with the acquisition; the risk that disruptions from the acquisition will harm the parties’ businesses, including current plans and operations; the ability of the parties to retain and hire key personnel; potential adverse reactions or changes to business relationships resulting from the announcement of the completion of the acquisition; the Company’s liquidity position and ability to access capital; the Company’s ability to continue as a going concern; the Company’s ability to successfully remediate the material weaknesses in internal control over financial reporting; the Company’s ability to realize the anticipated benefits of its financial restructuring; the Company’s ability to comply with the restrictions imposed by covenants contained in the exit financing and the new subsidiary limited liability company agreement; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policies; employee attrition and the Company’s ability to retain senior management and other key personnel; the Company's ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; and the impact of litigation and regulatory proceedings. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the risk factors contained in our most recent Annual Report on Form 10-K. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

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This repeat order from Veregy shows that microturbines are not just a one-off solution; they are a cornerstone of a long-term energy strategy