Capstone Green Energy (formerly Capstone Turbine) received an order for a microturbine intended to run on hydrogen. The order by Blue Economy CRC, a cooperative research center working in partnership to develop Australia's aquaculture industry, represents the first hydrogen microturbine for Capstone. Capstone only recently released its first commercial Combined Heat and Power product, which runs on 10% hydrogen and 90% natural gas. Capstone is testing a 30% hydrogen unit and has begun research on a 100% hydrogen unit.The unit will use hydrogen generated from renewable sources. Blue Economy and partners will use hydrogen from solar, wind and wave sources to feed the microturbine. It will be part of a microgrid that will support offshore research and aquaculture for food production. It will allow the potential for 100% hydrogen-fuel-based power generation in the future. The initial stage is designed to provide proof of concept.The order probably does not have a significant impact on Capstone's bottom line but is an important step in moving the product forward. The company did not release financial details of the order. We suspect the overall impact to be minor. However, the exposure the order brings is huge. Assuming the product runs as expected, the order could pave the way for future orders including orders of higher hydrogen microturbines both by Blue Economy and others.We continue to rate the shares of CPST as Outperform with a $13 twelve-month price objective. Capstone continues to receive new orders and grow its backlog. At the same time, it is developing new products and shifting sales to higher-margin service contracts. The company is leveraged to benefit from expanding top-line growth, and a growing environmental consciousness is feeding that top-line growth. Read More >>