CHP Project Designed to Deliver Operational Efficiency, Odor Control, and Community Benefits

Capstone Green Energy Holdings, Inc. (the "Company” or “Capstone”) (OTCQX: CGEH), together with its subsidiaries, a leading provider of clean technology solutions using ultra-low emission microturbine energy solutions, today announced completing the installation of its 6.6-megawatt combined heat and power (CHP) microturbine system at a landmark renewable energy facility in North Carolina. This waste-to-energy project marks a meaningful step forward in the customer’s operational strategy by monetizing swine waste through a proprietary pyrolysis process to produce renewable biogas. Capstone’s microturbines will convert this on-site biogas into 100% renewable electricity for grid export, while simultaneously delivering high-value thermal energy to support the facility's internal operations. This integrated approach enhances project economics, improves energy efficiency, and creates a scalable model for recurring renewable power generation and long-term revenue growth.

The project was secured by E-Finity Distributed Generation, Capstone’s distributor for the Mid-Atlantic, Southern United States, and the Caribbean region. The sophisticated array consisting of one Capstone C600S microturbine and six Capstone C1000S microturbines is scheduled for final commissioning in March 2026.

Innovative Circular Economy Solution

“The project represents a significant shift in agricultural waste management. By utilizing pyrolysis, a thermochemical decomposition process, the facility transforms organic swine waste into a clean-burning biogas,” said Vince Canino, President and CEO of Capstone Green Energy. “Our Signature Series microturbines are uniquely engineered to handle a wide operating window, along with variable compositions of renewable biogas - providing a resilient and low-emission alternative to traditional reciprocating engines. By converting agricultural waste into dependable renewable power and capturing microturbine waste heat for productive use, we create a true circular economy that delivers lasting value to the surrounding community.”

Beyond improving operational efficiency, the system serves a broader community purpose. The project was designed as an effective odor-control solution, helping reduce environmental impacts while supporting local renewable energy goals. In addition to producing renewable electricity, the facility is expected to generate Carbon Emission Reduction (CER) credits.

Technological Synergy: Pyrolysis & Microturbines

By combining advanced pyrolysis with microturbine technology, the facility achieves a "circular" energy model. Unlike traditional combustion, this integrated approach:

• Monetizes Waste: Converts an agricultural byproduct into a consistent revenue stream through renewable power generation.
• Maximizes Efficiency: The CHP configuration uses the heat generated during electricity production to support the pyrolysis thermochemical reaction, optimizing the project's overall carbon footprint.
• Scalable Infrastructure: Provides a modular blueprint for other large-scale agricultural operations looking to meet North Carolina’s renewable energy mandates.

In this installation, the Capstone microturbines will operate on biogas produced from swine waste (hog manure), which is converted through proprietary pyrolysis reactors. The clean exhaust heat generated by the microturbine system will be captured and used to heat thermal oil, providing the temperature control required for the reactors used in the biogas production process. This closed design maximizes energy efficiency, reduces waste, and supports continuous renewable fuel generation.

“Projects like this show how distributed generation can provide real operational and environmental value,” said Jeff Beiter, Founder and CEO of E-Finity Distributed Generation. “By converting agricultural waste into renewable power and usable heat, the system supports odor control, improves efficiency, and enables the generation of carbon emission reduction credits, helping align economic performance with ESG goals.”

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, which 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. 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’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; the impact of litigation and regulatory proceedings; inquiries from the SEC; the potential material adverse effect on the price of the Company’s common stock and stockholder lawsuits. 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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By converting agricultural waste into dependable renewable power and capturing microturbine waste heat for productive use, we create a true circular economy that delivers lasting value to the surrounding community